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Be warned: Banks facing trouble getting funding are cutting back
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The credit market continues to tighten significantly this week.
It has been announced that NatWest and the Royal Bank of Scotland will now only accept new applications for their Classic and Gold credit cards from existing customers. It has also been announced this week that the most loyal customers of Egg, who signed up before October 2001, are to have cashback removed from their cards in November. And a report from the Bank of England has warned that banks are likely to tighten their lending criteria even further. The Bank's Credit Conditions Survey warned that credit card limits may be reduced following "deterioration" in the cost and access to wholesale funds in the London Money Markets by UK banks.
The beleaguered Financial Services Authority also gave early indications that it proposes to apply to the Government to extend its regulatory powers to control buy-to-let mortgages, which were specifically excluded when the FSA first assumed responsibility for mortgage regulation in 2004. It also wants to take control and better regulate secured loans – second mortgage finance – which it sees, together with buy-to-let mortgages, as being part of the 'lax' lending that has contributed to the credit crunch.
<img alt="visit checkmyfile now" style="border: medium none ; margin: 0px 5px 5px 0pt; padding: 4px; float: left;">
The credit market continues to tighten significantly this week.
It has been announced that NatWest and the Royal Bank of Scotland will now only accept new applications for their Classic and Gold credit cards from existing customers. It has also been announced this week that the most loyal customers of Egg, who signed up before October 2001, are to have cashback removed from their cards in November. And a report from the Bank of England has warned that banks are likely to tighten their lending criteria even further. The Bank's Credit Conditions Survey warned that credit card limits may be reduced following "deterioration" in the cost and access to wholesale funds in the London Money Markets by UK banks.
The beleaguered Financial Services Authority also gave early indications that it proposes to apply to the Government to extend its regulatory powers to control buy-to-let mortgages, which were specifically excluded when the FSA first assumed responsibility for mortgage regulation in 2004. It also wants to take control and better regulate secured loans – second mortgage finance – which it sees, together with buy-to-let mortgages, as being part of the 'lax' lending that has contributed to the credit crunch.
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