Credit crunch 'far from over'

In news that may interest those pondering whether to try to save money with a self build project or try to take out a mortgage to buy a home, it has been claimed that the credit crunch is nowhere near its end.

Charles Davis, an economist at the Centre for Economics and Business Research, said the present data indicates that the situation is still far from being normalised.

He added: "If you look at the latest financial indicators the situation has still not normalised; the banks are still announcing big losses, big write downs."

Mr Davis concluded that while the biggest of the write-downs may have passed there may be others to come, adding that the addition of higher inflation has created a "double whammy" for the economy.

The Nationwide Consumer Confidence Index for July has revealed that 85 per cent of people expect the UK economy to be as bad as it is now or worse in six months time.