By Jonathan Guthrie, Enterprise Editor
Published: September 19 2007 03:48 | Last updated: September 19 2007 03:48
The wholesale credit squeeze that triggered the run on Northern Rock is feeding through into tighter lending to businesses, credit brokers and one lender said on Tuesday. Accountants reported surging demand from banks commissioning health checks on borrowers they feared were vulnerable to financial collapse.
Commercial First, one of the UK’s largest independent commercial lenders, raised its key mortgage rate from 1.65 per cent to 2.65 per cent over the London Interbank Offered Rate, saying: “It is business as usual but we have to reflect the cost of funding.” The company has a £1.5bn book of loans made to companies backed by their property assets.
Thursday, September 20, 2007
Business squeezed by tighter credit
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