In many cases, individuals simply purchase more house than they can afford and an easy loan was available to allow them to do this. By restricting these types of loans, lenders have managed to bring the crisis under control, but will require some time before they are able to return to business as normal. While it is easy to blame all manner of individuals, the easy loans themselves are the culprit behind the current credit crunch in the local area as well as around the world.

Until the financial markets recover, the days of easy loans will very likely not return.

Tags: adverse, credit, loan, mortgage, self, cert, council, car, home, improvement, holiday, remortgage, tracker, fixed, rate, mortgages holiday, improvement, remortgage, rate, adverse, home, credit, self, tracker, cert

“We are living through a period of inflating prices and mortgages are no exception,” explained Francis Ghiloni, mform’s marketing and business development director.

“The Bank of England can cut rates but as we have seen over the past year there is no guarantee this will translate into a lower true cost of mortgages at least in the short term.”

“With rates creeping steadily upwards the advice to borrowers looking for a new deal is clear. Look to minimise your exposure to rate rises by ranking your mortgage on the true cost taking into account repayments as well as all fees,” added Ghiloni.

Tags: adverse, credit, loan, mortgage, self, cert, council, car, home, improvement, holiday, remortgage, tracker, fixed, rate, mortgages fixed, car, tracker, cert, adverse, remortgage, mortgages, improvement, council, credit

“It is not a bad time to be a landlord,” says David Salusbury, chairman of the National Landlords Association. “Demand for rental accommodation is increasing, and established landlords are able to attend auctions and look for bargains.”

“We are experiencing a shake-out,” says Mr Salusbury. “If this reminds people that letting residential property is a serious business, because you are dealing with the provision of roofs over heads; and if it deters the dilettante end of the market, this shake-out could be a good thing.”

Tags: adverse, credit, loan, mortgage, self, cert, council, car, home, improvement, holiday, remortgage, tracker, fixed, rate, mortgages council, credit, rate, car, tracker, remortgage, adverse, cert, home, holiday

“Over the past year payday loans have become an issue in the UK, and the growth in people who have problems who have such a loan has been notable in the last six months.” said Chris Tapp of charity Credit Action.

Vince Cable, Treasury spokesman for the Liberal Democrats stated that the need for these quick loans “highlights the problems stemming from the credit crunch and unsustainable levels of personal debt in the UK.”

Andy Clarke, retail director at ASDA supermarket, said, “In the week before payday, shoppers are buying a higher proportion of value products.”

Tags: adverse, credit, loan, mortgage, self, cert, council, car, home, improvement, holiday, remortgage, tracker, fixed, rate, mortgages mortgage, tracker, car, cert, holiday, fixed, improvement, remortgage, self, adverse

Lesley Titcomb, director of the FSA, responsible for mortgage lending, said: “As our data shows in these current market conditions more people are struggling to meet their mortgage payments and it is vital that firms treat them fairly. This means paying attention to individual circumstances and not repossessing their homes when there may be an alternative solution. Repossession has to be a last resort.”

Citizens Advice head of consumer policy, Sue Edwards, said: “We welcome the findings of the FSA’s research on lenders’ mortgage arrears and lending practices, which mirror CAB clients’ experience. Our 2007 evidence report showed that in some cases lenders have taken borrowers to court without exploring all other options available to address the arrears, resulting in excessive costs, stress and worry for borrowers. This could be avoided if lenders had acted in accordance with the FSA rules that govern arrears management practices.”

Tags: adverse, credit, loan, mortgage, self, cert, council, car, home, improvement, holiday, remortgage, tracker, fixed, rate, mortgages mortgages, home, car, cert, improvement, mortgage, remortgage, loan, self, council

Simon Rubinsohn, the Royal Institute of Chartered Surveyors’ (Rics) chief economist, said: “The latest numbers from the Bank of England demonstrate in the clearest possible way the consequences of the credit crunch for the residential property market.

“Unless the authorities take steps to restart the mortgage market, the likelihood is that there will be more bad news in store for the both the housing market and the retail sector during the latter part of the year.”

“The Bank of England data graphically highlight that housing market activity continues to be throttled by stretched affordability and tight lending conditions,” commented Howard Archer, chief economist at analysts Global Insight.

Tags: adverse, credit, loan, mortgage, self, cert, council, car, home, improvement, holiday, remortgage, tracker, fixed, rate, mortgages car, credit, self, adverse, remortgage, council, rate, holiday, tracker, fixed

“The subprime market doesn’t really exist right now,” Federal Reserve Board Vice Chairman Donald Kohn said. “What we’re asking is what do we want it to look like when it comes back. We don’t want it to look like it has [the] past couple of years.”

“This rule will help eliminate areas of uncertainty that threaten to further weaken the market and [will] establish clear, well-balanced regulations that will benefit both borrowers and lenders,” said Rep. Carolyn Maloney (D., N.Y.). “Unfortunately, however, the new rule won’t help the millions of homeowners who’ve already fallen behind or defaulted on their mortgages, but it can help to prevent another housing crisis.”

“Fixes are popular because the future direction of interest rates is so uncertain,” says David Hollingworth of broker London and Country. “There is a lot of noise out there and alarming headlines. People want stable payments. They want to dissociate their finances from rate moves.” “Being a quick mover is key if you want as low a rate as possible,” he added. “In recent days the situation on the money markets has deteriorated further and the rates on two- and three-year offers are bound to rise to reflect this. Already both Abbey and Bradford & Bingley have increased the rates on their fixed deals.”

Drew Wotherspoon from broker Charcol adds: “De- pressingly for borrowers, it will not end here, with other [lenders] certain to follow. So the message for those who want a fixed rate is act now.”

“Countrywide exploited the American dream of home ownership and then sold its mortgages for huge profits on the secondary market,” said California Attorney General Jerry Brown. “Countrywide was, in essence, a mass-production loan factory, producing ever-increasing streams of debt without regard for borrowers.”

According to Illinois Governor Chris Gregoire there is, “compelling evidence that Countrywide has engaged in discriminatory lending practices.”

Deb Bortner, the Department of Financial Institutions’ director of consumer services stated, “What we found in our investigation is that many people didn’t know they were in an ARM or a negatively amortizing” mortgage, in which the principal actually increases.”

Sean Gardner, director of MoneyExpert.com, said: ‘Such high application fees will come as something of a shock to many homebuyers. We’re just not used to these levels. The days of fee-free mortgages are over and frankly getting anything under £1,000 is something of a coup. With stamp duty reaching an average of £4,950 per property, moving home is becoming more and more expensive.’

In addition, it is getting harder for applicants to get low quotes from their lenders. Rob Clifford, of broker Mortgageforce, cautioned: ‘Can you rely upon a quote from a lender? The answer is no. Lenders are not obliged to honour quotes and could elect to reject all applications or offer less attractive deals. Consumers haven’t got a cast-iron deal unless they have received a formal mortgage offer from the lender.’