All about it!

Their mess, Your consequences

dmort — Mon, 07 Jan 2008 01:39:19 +0000

Most financial analysts seem to have a grim outlook for all of us credit consumers in 2008, that’s because it is expected to become harder for all of us to get credit or even to pay off those loans that we already have.

The so called credit-crunch has created a lot of insecurity amongst borrowers, not that any of it is the UK consumer’s fault; the whole mess stems from risky US sub-prime mortgages. Never the less, UK banks invested there and have taken a big hit, and as they always do, they plan to pass that loss onto the consumer!

Credit reference agency Experian has already said it’s reviewing the methods it uses to evaluate a consumer’s credit rating, in other words, they’re tightening up. This means most people who recently had a mild credit rating will now have to resort to credit cards for people with bad credit when in need of a new credit card; this will cost more in terms of interest paid.

What’s even worse is that some borrowers are not even looking at just new applicants; some credit card providers have changed the terms for their existing customers.

In my opinion, it is severely unfair and should be illegal to impose these unfair terms on your customer, they never reduce charges when they make profits, why increase them when you make a loss?

UK lenders rise mortgage prices

dmort — Sun, 30 Sep 2007 02:24:56 +0000

experts predicted it, homeowners feared it, it’s finally starting to happen:

Abbey has become the first UK bank to increase mortgage prices according to the BBC, they blame the increase on the subprime market troubles.

Personally, i don’t see why this should be the homeowner’s problem. its not them that’ve caused the turmoil, the base interest rate hasn’t gone up either.

What will it take to buy a house in future?

dmort — Mon, 25 Jun 2007 02:24:29 +0000

In the housing industry there’s hardly ever any good news. a house that cost £80,000 in 1999 now costs £200,000 a 150% increase in such a short period.

what’s more: Figures from the Council of Mortgage Lenders (CML) show that first timers are now borrowing an average of 3.33 times their incomes to buy a home.

With interest rates having risen four times in the past year, interest payments now take up 18.7% of the average first-time buyer’s income.

Who will realistically afford a mortgage in the future? unless people’s salaries can find a way to rapidly increase, its doom for those of us who don’t already have a mortgage.

on the flipside, the bad credit mortgages industry is booming with many mainstream lenders branching out and taking advantage of the ever increasing number of people with bad credit.

I hope there will be a downturn, otherwise some of us will stay home with parents for a very long time!!

Hello world Press

dmort — Mon, 25 Jun 2007 01:32:01 +0000

The start of something new.. a begining, my blog, a place i’ll write about everything that’s of interest or concern. I hope this wordpress community is a good experience!!!