US rescue deal may help loans market

29 September 2008

The fate of the US’ $700bn rescue deal will affect loan and mortgage markets all over the world.

The deal was designed to allow the US Treasury to buy up troubled assets (also known as ‘bad loans’) from financial institutions in an attempt to revitalise financial institutions, enabling them to loan money to each other.

This would, in theory, ease the global liquidity crisis, helping individuals access loans.

However, the rescue package has met with resistance in the US Congress, where many politicians question not just its cost but also its effectiveness. So far, it’s unclear what kind of changes they will demand, what kind of compromise will be reached, and what effect it will end up having on loan markets.

---

Think Money offer a range of loans to suit various financial situations. If you are thinking about taking out a loan, contact one of our expert advisers now

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider.