As August nears, many are considering getting a holiday loan to get away from it all, but this may not be the right time according to many experts. Rates for holiday loans continue to go up and they question whether a vacation is the right thing for many at this time. Although rates for holiday loans are still a bit cheaper than a credit card rate, the difference is quickly closing.
Michael Coogan, CML director general, commented: “Cost and availability to customers has not improved. And this in turn means that consumers are now beginning to give up and demand is falling, with confidence in the housing market falling with it. It is not too late to take steps to address the fundamental problem, which is the lack of funding available through wholesale mortgage funding channels.”
Alan Clake, an economist with BNP Paribas stated, “Just because the markets and central banks’ primary focus has moved more heavily towards inflation is not to say that households’ and firms’ experience of the credit crunch has passed its worst - rather the opposite. Falling house prices are aggravating demand and supply of credit. The effects on growth are likely to persist for some time to come.”
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