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	Issue 82 - February 2008 In recent weeks we've seen many adverse credit and sub prime lenders withdrawing from the market and now we're experiencing the demise of the 125% mortgage. In addition, Northern Rock has just written to thousands of their borrowers suggesting they find a new home for their mortgage. It appears that the credit crunch is really starting to bite and we predict that thousands of borrowers are about to be left high and dry with uncompetitive deals and nowhere to turn. We look at what this all means and the options available to you if you're one of the affected. Borrowers Left High & Dry As Mortgages Tighten As the credit crunch tightens its grip, one of the most telling signs of what's to come can be found in the mortgage market. With lenders increasingly turning the screw and tightening their lending criteria many borrowers will be left high and dry with expensive and inflexible mortgage deals. Over recent years a number of lenders have been promoting mortgages to First Time Buyers that have enabled them to borrow more than 100% of the property value. These mortgages usually work by offering a mortgage on the property of 95% and then providing an unsecured loan for a further 30% of the property value meaning that the borrower ends up with total borrowing of 125% of the property value. Whilst these deals have helped thousands of first time buyers get on the housing ladder they are also partly to blame for pushing up house prices and maintaining the first time buyer market which might otherwise have helped to restrain the massive price increases we've seen. We have always questioned the sanity of borrowing 125% of the property value and felt that this was a disaster waiting to happen. Not only are interest rates loaded to reflect the higher risk the lender faces but the purchaser also has no stake in the property meaning they are particularly vulnerable to any reduction in house prices. It's a sad fact that those borrowers who have completed a 125% mortgage in recent months could find themselves in the unenviable situation of seeing their negative equity (where the mortgage is greater than the property value) increasing month by month. Continued.... Read More >>> Compare Mortgages >>> Speak to a Mortgage Adviser>>> Use your 'extra day' - and take the pensions leap! Planning and managing your pension arrangements can seem daunting - yet ensuring you have sufficient funds in your pension to finance your retirement has never been more important. It is crucial to make sure you have the right kind of pension for you and that it is working hard for your future so you can enjoy a comfortable lifestyle when you finish working. If you've been putting off reviewing your retirement saving arrangements because of lack of time or support, why not make the most of the 'extra day' in this leap year? Steve Latto, pension expert from Alliance Trust and Anna Sofat, an independent financial adviser with AJS Wealth Management will be joining us for an online webchat at 1pm on Friday 29th February to answer all your questions on retirement saving; clearing up misconceptions and giving tips whether you are starting off or want to review your strategy. If you have a question on pensions that you would like an answer to, then send it in now and make sure you join Steve and Anna for this live event and their answers! And if you don't get an answer to your question between 1 and 2pm, we have lined up a panel of expert IFAs - including Anna - who will continue to answer your queries throughout the rest of the day. Join Webchat>>> Webchat Archive>>> Compare & Buy Car Insurance Banking & Saving Secured Loans Home Insurance Best Buys Travel Insurance 2 great reasons to review your live cover today. Go >>> Compare the market to find the best deal Go >>>     Compare 0% balance transfer cards plus many many more. Go >>> Get impartial advice from one of our experts Go >>> Swinton Home Insurance Fantastic Home Insurance Deals From a panel of top insurers. Special 10% online discount. Apply Now! spotlight on... credit cards MBNA Platinum Plus Typical 15.9% APR variable 0% on balance transfers until statement date in April 2009 (2.9% handling fee applies) 0% on purchases until statement date in June 2008 Tesco Clubcard Credit Card Typical 16.9% APR variable 0% on balance transfers for 13 months (2.5% handling fee applies) 0% on purchases for 3 months MBNA Platinum Rewards Typical 15.9% APR variable & rewards! 0% on balance transfers for 12 months (3% handling fee applies) 0% on purchases for 3 months. mortgages Debtbuster Mortgages Start afresh in 2008 Clear your existing loans and credit cards With a remortgage Beech Finance Great Mortgage and Re-mortgage deals to suit all Nothing to Pay for 6 Months On Secured Loans Free Quote and dedicated specialist to help THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. insurance More Th>n Life Insurance Quality Life Insurance MORE TH>N will find the most affordable deal from our panel of insurers More is... life cover from only £5 per month homeowner loans Debtbuster Loans Overspent on your credit cards? You could clear them quickly & simply with a loan from us Search 300+ deals - fast, simple & free! THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. banking & saving Halifax Websaver Extra Gives you a great online rate of 6.35% gross Including 0.35% gross bonus until 18 July 2008 Apply Now! Northern Rock Tracker Online 6.49% gross pa/AER Easy access, simple online savings account Open account from £1. 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