One in four financial services companies have cut jobs in the past three months as the industry grows ever more pessimistic about the severity of the credit crisis., according to the CBI. Daily Telegraph

About 90% of companies in the sector expect the credit crisis to last a further six months, according to a quarterly survey from the Confederation of British Industry and PricewaterhouseCoopers.

The survey comes as the turmoil in financial markets begins to directly impact many British homeowners and house buyers, as banks and building societies raise the mortgage rates on a daily basis.

Building societies predict the volume of business will fall dramatically over the next three months.

A third of the companies questioned also predict that the financial services industry will shed jobs over the coming quarter as sub-prime write-downs and the slowing economy force costs to be cut.