Credit crunch to worsen says National Homebuyers
The effects of the global credit crunch are set to continue and may even get worse, leading to further financial difficulties for millions of people.
[UKPRwire, Tue Mar 04 2008] They were the words of the deputy governor of the Bank of England and website Fool is encouraging Britons to sit up and take notice.
"Faced with such uncertainty, homeowners who are nearing the end of their mortgage deal may need to drastically prune their household expenditure in order to meet higher mortgage repayments," said David Kuo, head of personal finance at Fool.
"A borrower currently paying £1,228 a month could be faced with an unpalatable £296 jump in monthly repayments if they are forced onto their lenderís standard variable rate (SVR) when their current deal ends.
"This a distinct possibility if lenders are caught in the largest ever peacetime liquidity crisis highlighted by Rachel Lomax," he added.
Many borrowers have already seen rates rise as a result of the global credit crunch, leading to financial difficulties for many.
Fast property sale expert Julian King adds, "Homeowners facing financial problems and even the threat of repossession need to be aware that solutions exist to help them.
"Mortgage rescue schemes like Sell and Rent Back allow the homeowner to sell their property for up to 100 per cent of its full market value and rent it back on a secure tenancy agreement."
Mr King is a director of National Homebuyers, the UK's leading Sell and Rent Back provider. He is also a founder of APBA [Approved Property Buyers Association] which is calling for regulation in the quick house sale and Sell and Rent Back industries.