The end of the credit crunch?

FRIDAY September 19 saw the biggest one day rise ever for the FTSE 100.

 

This followed the news that the U.S. government had decided to bail out the American mortgage market with a multi billion dollar salvage plan, following the near dramatic failure of the two largest mortgage lenders in the country, who between them hold mortgage debts in excess of $5 trillion.

 

The changes in our own financial sector over recent weeks has been no less dramatic with the news that Lloyds TSB were to take over the UK’s largest mortgage provider, HBOS, resulting in a high street super bank. And the Bank of England will be making available billions of pounds for the high street mortgage lenders, in a bid to settle down the UK housing market.

 

Wounds won’t heal overnight, but many believe that this could be the beginning of the end for the credit crunch. Only time will tell of course, and consumers in the mortgage market should continue to keep their wits about them. Independent Financial Advice has never been so relevant, and with many lenders starting to adjust their rates back to more favourable levels, now could be the time to start looking again to secure the most appropriate deal for you. If you are thinking of making your first tentative steps back into the mortgage market, make sure you are in the strongest possible position. Checking your credit history is a great place to start as this could save lots of time when you really want to nail the best possible deal.

 

                 You should start by checking your credit report. This is your personal credit history of what you’ve borrowed, such as loans, mortgages and credit cards, plus your repayment record and other information that lenders take into consideration when they decide whether you are a good risk.

                  Items in your credit report, along with details from your application, are used to calculate a credit score, which will determine whether you receive an offer and how much interest you will pay, so it makes sense to ensure that everything is up-to-date and accurately reflects your circumstances.

So lets all keep our fingers crossed that this is the start of the recovery we are all looking for. And feel free to contact us to discuss your own personal circumstances.