The 'Credit Crunch'
The credit crunch is now beginning to effect most people in form or another. It is the banks that seem to be the most affected and it would seem that they are passing on their grief to everyone else!
Many people see the banks and their apparant greed to make bigger and bigger profits as the primary cause of the difficulties many people in the UK are going to have to deal with!
These difficulties must not be understated. They effect people's lives and are capable of doing a lot of harm to many people's lives!
Banks and credit card companies are withdrawing credit and refusing loan applications. Banks that used to be happy to offer 125% mortgages only a few weeks ago are now demanding much larger deposits and big application fees before they will offer loans and mortgages
People who come to the end of their fixed mortgage or loan rate are now faced with huge increases in their monthly payments. Many cannot pay these amounts and are being repossessed. Surely the banks would be better off by continuing the fixed rate for another 12 months, rather than ending up with properties that cannot be sold and that have mortgages well over the value of the property in the current market. And in many cases it would cost social services (that is us the rate payers again!) much more to rehouse the families.
There seems to be something wrong with a banking system that fails to operate in a responsible manner and is then allowed to get their profits (and bonuses) back by increasing the charges to the ordinary people in the UK, many of whom were harmed by the banks in the first place!
I strongly believe that the banks should be heavily penalised in some way over the next ten years. This would be done by limiting the profits to some agreed percentage and any excess should be used to help those who have lost so much from the actions of greedy bankers over the last few years.
Dealing with the Credit Crunch
Loans and mortgages are now harder to get but people should always get professional advice so that they know exactly what the situation is as it effects them
If you are concerned about the various announcements that are being made daily in the press regarding the withdrawal of mortgage products and feel that you are going to struggle to pay the higher costs when your special deal ends then don’t despair.
If you are concerned about what you can do then speak to one of our professional advisers.
You can contact Take Financial Control by completing the Contact form so that one of our advisers may contact you.
