Is the credit crunch over?

Some mortgage brokers are predicting that the mortgage lenders (banks/buildings societies) may start to lend money, this is due to the fact that the bank of England deciding to pump a further £50 billion into the economy.

The bank of England have said that this will make it easier for mortgage lenders to lend money because they are able to obtain the money at a lower cost to them, therefore being able to provide more mortgages.

Is this going to happen?

Although that the bank of England appears to have given the mortgage lenders an option to borrow money at a cheaper rate, the mortgage lenders are still being cautious and very reluctant to give out mortgages. We feel that this is because they are all managing a bad debt book, which basically means they are managing people who are in arrears or simply not paying their mortgage, therefore having to repossess the properties.

All of this comes at a time where there are also rumours floating around about the bank of England putting up the base rate, which is currently 0.5%.

The best advice for anyone either looking for a new mortgage or a re-mortgage would be to get a good financial advisor, that way you are armed with the best advice possible. Please fee free to read our financial advisor selection page which was written via a financial advisor, you are also able to contact him to get advice or arrange a mortgage.

If you are struggling financially and can’t obtain a mortgage there is a great solution out there for you!

Sell and rent back your home!

The sell and rent back industry has just under gone regulation via the Financial Services Authority (FSA). At present it is only an interim authorisation so the FSA can asses the companies that have applied, but it is due for full regulation in June 2010. You can be safe in knowing that there are only a handful of companies that are now able to operate within this industry and that the rouge traders would have not even applied due to the extent of the investigation procedure by the FSA.