The importance of good financial management for future buyers
September 21, 2007
With the sub-prime mortgage markets in the UK now feeling the effects of the sub-prime crisis in the United States, those planning to purchase a property in the near future could find things very difficult – and expensive – if they have a badly damaged credit rating.This is why experts are now urging anyone that is planning to purchase a property in the next year or so to make sure that they get their credit sorted out, or if they have decent credit to make sure that it stays that way in order to avoid difficulties when it comes to getting a mortgage.
Record defaults in the sub-prime mortgage sector have led to a credit crunch that is having global repercussions, and this could result in severe difficulties for those with credit problems in terms of getting a mortgage. With a number of lenders deciding to withdraw from the market, even if on a temporary basis, and many others increasing their rates on sub-prime products even those that are able to find a mortgage from a sub-prime lender will end up paying through the nose due to significantly increased interest rates.
In order to avoid this situation and reduce the chances of having to go through a sub-prime lender consumers are advised to order copies of their credit reports to ensure that everything is in order or to see where improvements needs to be made. It is also important for consumers to ensure that they keep up with payments on bills and debts, and do not default or make regular late payments. By ensuring that their credit stays in check those planning to make a property purchase in the next year or so can ensure that they have access to affordable mortgage loans.
Alan Wright
21st September 2007
Recent posts:
- Many consumers worried about interest rates
- First time buyers decide to wait it out
- Bankruptcy could be the right answer for some borrowers
- Customers don’t want to pay monthly fees on bank accounts
- Another interest rate rise in the pipeline
Related Articles
- Avoid loaning money to family and friends According to a debt advice agency in the UK it could be detrimental to both the borrower and the lender in cases where people are
- Interest rate stays on hold for now Homeowners across the UK breathed a sigh of relief last week after the Bank of England announced that Monetary Policy Committee members had voted to
- Could supermarkets soon take over current accounts market? There was a time when supermarkets were only used for the purchase of groceries and household goods, but all of this has changed over recent
- Possible lower debts with store cards Store cards are traditionally associated with high interest rates, and many consumers are urged to avoid spending on these cards. However, one recent report has suggested
- Drop in insolvencies during second quarter The government has recently released a report that shows insolvencies have actually fallen in the UK during the second quarter of this year. Compared to
Comments
Got something to say?