Articles
The Credit Crunch, Mortgage Borrowers and a Fall in
House Prices
The Bank of England has tried to help mortgage borrowers, and prevent a further decline in the economy from a repeated fall in house prices by reducing interest rates earlier this year. Interest rates currently remain unchanged for the time being and stand at 5 per cent...
What does the Credit Crunch mean for Mortgage Borrowers?
Unfortunately, many mortgage lenders have been unable to pass these savings onto home-owners because of the uncertainties in UK economic growth and in some cases (such as the difficulties experienced by Northern Rock in August last year) because the cash has quite literally run out to fund their current housing stock at the same lower interest rates. What is potentially more worrying for home-owners is that interest rates are unlikely to reduce any further in the near future because of rising inflation which currently stands 1 per cent above the UK Government’s target of 2 per cent – there is even the possibility that they may rise again. All this means that there exists an economic stalemate for the time being, with market predictions bringing little joy to home-owners, businesses and employees over the next few months, and possibly well into 2009.
What the Credit Crunch means for mortgage borrowers is uncertain. Banks other than Northern Rock have also felt the ‘credit crunch’. Such a case is that of Bradford and Bingley, the latest bank that has found itself being unable to fund its Buy-to-Let business as the cash it requires is simply not available from their traditional avenues of finance. As a result, Bradford and Bingley has recently suffered massive falls in its stock share price because of a profits warning for 2008 - more and more of their mortgage customers are increasingly missing their monthly repayments on property that is potentially decreasing in value as average house prices continue to fall month on month. These figures also echo a steep rise in repossession figures for the first quarter of 2008...
Credit Crunch Budgeting and Financial Planning for Everyone
For many, one way to cut a path through these difficult times, when cheap re-mortgaging and low fixed rate deals are harder to come by, is to revise how they manage the money that’s already in their pockets, ensuring that they make the most of every pound by making savings and reductions wherever possible. Ensuring that sensible financial budgeting is at the forefront of everybody’s minds is very important, as well as keeping both eyes open for the best deals on mortgages rates, the banks’ current account deals and where it is possible to save money, on the highest interest savings accounts.
Most banks want you to deposit money regularly with them due to their shortage of cash liquidity, so high interest rate accounts are being offered to tempt you to give them your business.
Here are some recommendations for mortgage accounts, personal bank accounts, business bank accounts and high interest savings accounts available online:
Mortgage Deals
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One Account for Home-owners
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An all-in-one mortgage and current account from the Royal Bank of Scotland (RBS),
the One Account offers flexibility and security from the knowledge that your money is working its hardest to keep your mortgage interest rates low – whilst allowing for your individual financial circumstances at all times. |
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Personal Bank Accounts
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Alliance & Leicester Premier Direct
Current Account |
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Business Bank Accounts
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Alliance & Leicester Business Accounts |
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Alliance & Leicester Business Accounts |
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High Interest Savings Accounts
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Santander Instant Access Saver Account
Santander's Instant Access Saver offers a great rate and Instant Access to your money
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Capital One
Base Beater Account
A guaranteed high interest rate with free and easy access to your money. With Capital One Base Beater Account you can relax, safe in the knowledge that you'll get a great savings rate.
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