Are you tired of hearing the phrase credit crunch? Lately it feels like we're being warned of financial doom and gloom arriving in our own back yard most days. And, whether it's house prices, or rising shopping bills, it really does feel like a bleak forecast.
Gordon Brown's been in the firing-line over the state of the nation's finances a fair bit over the past couple of months. Today, he insisted he's making the right long-term decisions to protect Britain. In particular he stressed the Government is taking steps to underpin the cooling housing market.
But, his confident words come on a day when a new report has revealed a record number of surveyors believe property prices are falling across the UK - and that confidence in the housing market is at its lowest ebb for 30 years.
Personally, after a few years of scrimping and saving to get a first foot on the property ladder my boyfriend and I finally had enough for a 5% deposit mortgage. Our starter pad was within reach at last... but a couple of months ago the building society in question pulled the product and demanded a minimum 10% deposit. They were followed by a string of other lenders and, unable to raise more funds at the drop of a hat, our dream went up in smoke. So, for those with similar mortgage headaches, or those people who may be threatened with losing their job thanks to the fallout from these crunch times... I think we can be forgiven for thinking that the light at the end of the tunnel seems a very long way away.
Laura, Afternoon Live producer
I feel sorry for people that have saved hard only to be let down by this Prime Minister and the Mortgage companies, who got us into this mess in the first place. If all credit was called in tomorrow this country would be broke, but don't worry because if you run out of money the bank of England will pay off all your debts, pat you on the back and tell you "it's okay, we all make mistakes, better luck next time." They may even pay you off with a golden handshake for being a plonker and then you would never have to borrow money again. So start up a Mortgage Company, go bust,and all will be fine.
Posted by: Derek, Plymouth 16 Apr 2008 12:43:30
As with everything, there are but two sides to the coin. On the one hand, I think this responsible lending is to be welcomed as the financial industry of all industries is one most open to abuse and should I say non-standard pay slips.
On the other hand, tough times call for tough choices, but as buying a house is the most distressing purchase of all, I would much rather save up more than 20% deposit and thereafter seek a financial commitment in the knowledge that I can sit back and relax having spent all that time [Hunting High & Low] for the pad of choice.
You see, the more of the share you own outright in your property, the better it would be for you in the long term as without your consent repossession would be difficult. [Aha].
Posted by: Khalid 19 Apr 2008 15:34:21