mortgages

Worried about the current market and how the “Credit Crunch” might affect you?

The UK Mortgage Market is currently operating in a way in which it has not done within the last 30 years and certainly in a very different way from recent years.  From a position of oversupply this time last year with intense competition amongst lenders both new and traditional on criteria and on price, we’ve moved to a state of under supply, tightening criteria and widening lender margins hence higher rates for you the consumer.

The most obvious consequences of this position is a shortage of competitive rates, rates being withdrawn at very short notice, rates being re-priced upwards and criteria being adjusted.  Whether falls in Bank of England Base Rate are now followed by falls in mortgage rates is far from certain but with sufficient cuts, the cost of borrowing should get cheaper perhaps encouraging more people back into the mortgage and housing market.

What can you do

• Don’t panic – If you are experiencing payment difficulties speak to your lender immediately “they are there to help”
• Try to keep a clean credit history and stay up to date with the payments onyour financial commitments as Arrears, County Court Judgements will make it difficult to secure a competitive rate.
• Review your mortgage arrangements regularly

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