I see Halifax, amongst others, is increasing its tracker rates again today which in isolation is not so much of an issue. Taken in the context of the last few weeks, I have never known such a situation.
Lenders are repricing upwards, with not much if any notice, on a frighteningly regular basis which is making the job of the poor, beleaguered adviser very difficult indeed. After all, by rights we are meant to be in a falling interest rate environment so where will this end ?
Criteria changes are going on left, right and centre and worrying rumours are circulating at high speed.
The Bank of England, European Central Bank and the Fed are all pumping more money into the banking system to try to assist with the current liquidity issues, but will this be enough as we are now eight months since the “credit crunch” began ?
In the short-term this may assist and the US stockmarket has responded favourably, but is there now a deeper issue. As the BBC’s Economics Editor Evan Davis put it “It is, in other words, a crisis of confidence in bank solvency. It’s not that banks don’t have cash to lend; it’s that they don’t trust each other to have sufficient assets.”
It is however, up to all of us to keep calm and take some responsibility. It is up to the lenders to keep a sensible and open dialogue going with brokers and the few main packagers. We do understand the issues and we want to work with you to help.
Perhaps the most worrying aspect of all of this is the slight feeling that some lenders may slowly and carefully be retreating from the conversation.