Who is concerned about the Credit Crunch and what do you need to do to help beat it?
August 31, 2008
coolcatz asked:
There are a lot of people who rely on their credit cards to get them through the month and with the situation we’re in now may find this a problem as lenders are not lending so easily as before.
Who would be prepared to take on a second job part time to supplement their income? I would be interested to know.
Thank you
There are a lot of people who rely on their credit cards to get them through the month and with the situation we’re in now may find this a problem as lenders are not lending so easily as before.
Who would be prepared to take on a second job part time to supplement their income? I would be interested to know.
Thank you
September 1st, 2008 at 9:38 pm
Anyone with a ’special deal’ Mortgage and a (new) LTV ratio above 90% (as house prices fall is some area’s, more and more people are seeing their LTV ratio increase)
When their current deal ends they will start paying the lenders ’standard variable rate’ (which is typically quite high) .. and those without 10% deposit/equity are finding it almost impossible to get any sort of ’special deal’ .. so they will see their repayments rise by up to 50%.
Nothing any individual can do will make the slightest difference for others.. all you can do is look at your own circumstances and consider what’s best for you ……
If you are on a ‘repayment’ mortgage, you might want to consider asking your lender to if you can pay ‘Interest Only’ (most Mortgage Company’s will allow this if the alternative is repossession), at least until the current crisis is over ..
Others who are close to the 90% LTV threshold might want to consider ‘locking into’ a 5 year deal now (whilst they still can).
September 3rd, 2008 at 5:05 pm
I’m not worried about the credit crunch because I plan ahead. I got a mortgage I could afford and did not get myself into a mortgage I could not afford. I’ll be able to hold on with my fixed rate mortgage, if I need to sell my house & can’t I’ll rent it out. People spend every peny they make, don’t plan for a rainy day and commit too much of their pay to normal bills.
I was offered a mortgage at 8% interest with $800.00 a month payments. I laughed at the broker, I got 6.75% for $550.00 a month, with taxes & insurance $676.00. That I could afford!
Even tho’ my credit would allow the higher note I knew I would not be able to make that payment. Be smart, careful & you can survive a credit crunch, or you can spend yourself into the poor house.
Learning the difference between Want & Need is the key.
September 6th, 2008 at 11:02 pm
I sold when everyone was buying and willing to pay ridiculous prices for homes. I am now buying a new construction home (which has already gone up in value 3,000 dollars since I signed the purchase agreement 3 weeks ago) We are in CA and the homebuilder has already sold half the community in one month, so now is a great time to buy.