It was reported in the SUNDAY EXPRESS on 14th October 2007 that cash strapped borrowers with poor credit records face paying thousands of pounds extra to secure a mortgage as the creditcrunch takes hold, new figures revealed this week.
A quarter of all specialist and "sub-prime" mortgage applicants - those with a history of missed repayments or credit problems who were accepted for a home loan in August would not be accepted today, said broker The Mortgage Lender.
Those who secure a mortgage offer will find it expensive;with some sub-prime deals charging more than 10 per cent annual interest.
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A mortgage taken out in August by a customer with a poor credit history will now cost a new applicant as much as £200 a month more.
Lenders are tightening 'up on their 'affordability' criteria, which determines how much· they will lend calculated "from disposable income. With the higher interest rates charged even fewer people will get a mortgage.
The amount people can borrow is falling too with many lenders only willing to lend around 75 per cent of the value of the property.
Katie Tucker at broker John Charcol said: "Kensington's 'High And' range is only available to 75 per cent now, down from 85 per cent, and the two-year tracker remortgage rate is 10.5 per cent."
The so-called credit crunch stems from activity in the US, where banks lost
millions of dollars. When homeowners with bad credit records failed to repay
loans .
Lenders fear that risky lending to UK homeowners will lead to the same thing happening here.
Lenders are steering clear of high-risk borrowers. Those that will lend to those with poor credit histories will make them pay for- it. There have been dramatic changes to the rates offered.
Debt experts say that tightening up on how much lenders will offer could save people from bankruptcy.
Mainstream lenders are turning down more mortgage and personal loan applicants, according to new figures.
• Nearly 2 million of those applying, for a loan in the past six months' have been rejected by banks, said website MoneyExpert.com.
Chase Saunders financial management has already noticed that those with the habit of moving mortgages and the new lending restrictions are already starting to cause havoc.
The number of rejected applications has increased and the ability to maintain contractual payments to mortgages and other borrowings has suffered alarmingly.
Chase Saunders are a complete ‘one stop’ for financial matters, mortgage and remortgages, secured loans, debt management and IVA,s for those whose finances need a complete overhaul and would recommend that any body who is genuinely struggling with their finances should speak with a debt advisor who will point them in the right direction. Contact Chase Saunders Financial Management on FREE PHONE 0800 138 2299 or make a quick enquiry at www.chasesaunders.co.uk
IVA Advice Debt Help Home Loans Remortgages Bridging Quotes
Chase Saunders provide a full range of financial services including IVA Advice and Dept Management, Full Mortgage, Remortage and Home Loan Services including the facilities to offer Bridging Financing.
Monday, 22 October 2007
Friday, 19 October 2007
2 million loans declined because of credit crunch.
2 million loans declined because of credit crunch.
Many consumers will find it harder to get loans during the next few months with lenders turning down more mortgage and personal loan applicants, according to new figures.
Nearly 2 million loan applicants in the past six months have been rejected by banks, said MoneyExpert.com, a financial comparison site. MoneyExpert revealed 1.91 million adults had been turned down (for an unsecured loan between April and September compared with 1.39 million who were rejected in the previous six months.
"Lenders have been stung by bad debts with borrowers unable to repay the cash, and are tightening their lending criteria," said Sean Gardner at MoneyExpert.
"A combination of the credit crunch and the Bank of England putting up interest rates has hit borrowers' ability to repay and lenders are reacting. It is not just a matter of rates on loans going up. Lenders are much more cautious about who they will lend to."
At least nine lenders increased interest rates on personal loans this week by as much as four percentage points and many are upping mortgage rates.
Louise Cuming, head of mortgages at price-comparison site moneysupermarket.com, said: "The result of all this will be two-fold. First-time buyers will find it harder to get on the ladder, with lenders recognising only the very safest applicants, while existing homeowners experiencing financial problems will find it increasingly difficult to borrow their way out of trouble."
Chase Saunders Financial Management has noticed an increased number of people requesting debt advice because loan applications have been refused.
The worrying part is that people still believe that borrowing more to clear debt is the only answer. There are other solutions that can give the desired affect of clearing the debt even if over a longer period, but at a payment that is affordable, this safeguards all household expenses and improves living standards by having the knowledge that everybody is being paid. All this without borrowing a penny!
For FREE confidential debt advice contact a debt advisor on 0800 138 2299 or apply online to http://www.chasesaunders.co.uk/ . Help is here.
Many consumers will find it harder to get loans during the next few months with lenders turning down more mortgage and personal loan applicants, according to new figures.
Nearly 2 million loan applicants in the past six months have been rejected by banks, said MoneyExpert.com, a financial comparison site. MoneyExpert revealed 1.91 million adults had been turned down (for an unsecured loan between April and September compared with 1.39 million who were rejected in the previous six months.
"Lenders have been stung by bad debts with borrowers unable to repay the cash, and are tightening their lending criteria," said Sean Gardner at MoneyExpert.
"A combination of the credit crunch and the Bank of England putting up interest rates has hit borrowers' ability to repay and lenders are reacting. It is not just a matter of rates on loans going up. Lenders are much more cautious about who they will lend to."
At least nine lenders increased interest rates on personal loans this week by as much as four percentage points and many are upping mortgage rates.
Louise Cuming, head of mortgages at price-comparison site moneysupermarket.com, said: "The result of all this will be two-fold. First-time buyers will find it harder to get on the ladder, with lenders recognising only the very safest applicants, while existing homeowners experiencing financial problems will find it increasingly difficult to borrow their way out of trouble."
Chase Saunders Financial Management has noticed an increased number of people requesting debt advice because loan applications have been refused.
The worrying part is that people still believe that borrowing more to clear debt is the only answer. There are other solutions that can give the desired affect of clearing the debt even if over a longer period, but at a payment that is affordable, this safeguards all household expenses and improves living standards by having the knowledge that everybody is being paid. All this without borrowing a penny!
For FREE confidential debt advice contact a debt advisor on 0800 138 2299 or apply online to http://www.chasesaunders.co.uk/ . Help is here.
| IVA Advice Debt Help Home Loans Remortgages Bridging Quotes Chase Saunders provide a full range of financial services including IVA Advice and Dept Management, Full Mortgage, Remortage and Home Loan Services including the facilities to offer Bridging Financing. |
Wednesday, 3 October 2007
Do Not Borrow To Get Yourself Out Of Debt
The Sunday People 23rd September 2007, reported that a record number
of people are in money trouble – with many getting into worse debt AFTER taking out a debt consolidation loan.
More than 12.7million people have tried to borrow their way out of debt at some time in their lives.
8.5 million of these have carried on spending with credit, and therefore land themselves further in debt.
Chase Saunders Financial Management are speaking to increasing numbers of people who have been lured by the TV adverts that use the celebrities to promote Debt Consolidation Loans.
They now find themselves in a desperate situation with an even larger debt level than before, fortunately Chase Saunders have Debt Management and IVA programmes available to help them clear their debt without borrowing more.
Clearing debt with your own money is the only way to clear debts, a Debt programme does exactly that.
-Make one affordable monthly payment
-Only pay what you can afford
-Chase Saunders deal with all your creditors
-Request that all future interest be frozen and charges stopped
-Even if debts are in excess of £15000 you could be debt free in up to 5 years.
Call a Debt Advisor now in the strictest of confidence on 0800 138 2299
or go to www.chasesaunders.co.uk
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