Product category:
Mortgages / Housing
News Release from: CreditExpert | Subject: Mortgages
Edited by the Insidemoneytalk Editorial
Team on 19 September 2007
CreditExpert.co.uk comments on 'credit
crunch'
CreditExpert.co.uk's Jim Hodgkins comments on 'credit crunch'
The credit crunch is beginning to have an effect on individuals ability to obtain credit as many lenders tighten up their lending criteria to ensure they continue to lend responsibly, leading to an increase in the number of applications for borrowing being turned down On top of this, many people are coming to the end of low interest fixed terms on their mortgages and, following five interest rate increases in the last year, will see their mortgage repayments rising substantially
This article was originally published on Insidemoneytalk on 5 Mar 2007 at 8.00am (UK)
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Despite the Bank of England's interest rates remaining unchanged over the last couple of months, pressure from overseas is causing lenders to raise interest rates for businesses and personal borrowers alike.
Jim Hodgkins, Managing Director of CreditExpert.co.uk, issues a warning today to consumers advising them to keep a close check on their credit report during times of high inflation and increased living costs: "As the US credit crunch spills over into the British economy, we all need to keep an eye on our credit commitments and keep checking our credit report.
If a mortgage provider has imposed even a quarter of a percent rise, you could end up paying hundreds of pounds extra a month, which could push many into the red.
If your credit report shows that you are not keeping up with your current commitments, you become an unattractive proposition to lenders as they do not want to be responsible for lending you additional sums you may not be able to afford to repay.
"By checking your credit report regularly and keeping it up to date, you can make sure it reflects you and your financial circumstances correctly.
By offering a snapshot of what you owe and how well you are managing your finances, your credit report can help you to work out how much you need to spend on essentials and how much you have left over, helping you to weather the credit storm.".
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