Credit conditions 'making it hard to borrow money'

10 October 2007
An economist has warned that conditions within the world's credit markets could have a negative impact upon the UK.

Speaking to BBC One's Lunchtime News, Marian Bell, a former member of the Bank of England's monetary policy committee, said that recent developments in the markets could have a serious effect upon the country's economy.

Such events could lead to an economic slowdown across the rest of the world, Ms Bell claimed, in addition to "a tightening of credit conditions, making it harder for companies and households to borrow here".

However, Peter O'Donovan, mortgage manager for Bestinvest, said that the credit crunch has yet to create problems for people looking to take out high-value mortgages.

Mr O'Donovan said that lenders' criteria for such mortgages have been "quite strict anyway", so affordability and rising interest rates are now likely to be the biggest concern for consumers.

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