Bank cuts new investors

WIMBLEDON & South West Finance, a small London bank, is not opening any new investment accounts. The bank has already cut back its mortgage lending.

Robin Eve, a spokesman for Wimbledon, says that the bank is not under any restraint from the Bank of England.

In the summer, Wimbledon was offering higher interest rates for investors than was normal in the market. According to Mr Eve the reason it has now closed all its accounts to new investors is that they drew in money much faster than was

expected.

He says that existing investors may still add to their accounts. However, the Bank does not want deposits in excess of pounds 50,000. 'If there is more than that when the account matures, there is a big hole in the cash flow,' Mr Eve says.

He adds that the bank hopes to be taking new deposits in the New Year. 'Like all banks we have had a very rough time for the two years up to March this year.

'But now there is a little bit of sun on the horizon,' he added.