|
Last week we looked at the causes of the 'credit crunch' and the likely effects. This week we examine some of the ideas that you can easily implement to help you through these difficult times.
|
Part 2 - How to Survive the 'Credit Crunch'
|
MORTGAGES
The biggest single commitment that most families have is their mortgage payment so naturally this is the number one cause for concern and, for most people, the main area that can threaten their financial stability. For that reason it makes sense to make it your number one priority.
If you are on a long term fixed or discounted rate then that's great and there's probably little you can do even if you wanted to. However, if you are on a variable rate or coming to the end of a fixed or discounted rate at any time in the next 7 - 8 months then I would suggest that you take action now. Although Bank of England Base Rate seems to be moving downwards there is no certainty that mortgage rates will follow suit. As the shortage of mortgage funds really starts to bite we will find deals becoming less competitive and lenders becoming more selective. Lenders will usually leave mortgage offers open for six months so act now, get your mortgage offer in place, and you may find you have secured a better deal than if you had waited.
For those of you, unable to move lender but struggling with the mortgage payments then there are a couple of things you can do which may ease the pressure;
- Switch to an interest only mortgage - If you're currently paying capital and interest then this will reduce your mortgage payments until such time as you can afford to switch back. However, remember to switch back to paying capital as soon as you can afford it. Our mortgage repayment calculator will help you to understand how much your mortgage will cost on an interest only basis
- Extend the term - If you don't fancy switching to interest only then you could ask your lender to extend your mortgage term - they will usually go up to 35 or even 40 years and again you can move the term back down as soon as you can afford it - use our mortgage calculator to understand the effect on your repayments.
Continued....
Compare Mortgages >>>
Speak to a Mortgage Adviser>>>
|
Compare & Buy
|
|
|
| Loans |
Compare the market to find the best loan deal
Go >>> |
|
 |
|
|
|
| |
|
|
|
|
|
American Express Platinum MoneyBack Credit Card
 |
Typical 18.9% APR variable. Time to treat yourself. Enjoy up to 5% MoneyBack with The American Express Platinum MoneyBack Credit Card. |
|
|
| |
|
|
|
spotlight on...
|
|
|
credit cards |
|
|
MBNA Platinum
- Typical 15.9% APR variable
- 0% on balance transfers until statement date in May 2009 (2.9% handling fee applies)
- 0% on purchases until statement date in July 2008
|
|
|
|
Barclaycard Flexi-Rate
- Typical 14.9% APR variable
- 0% on balance transfers for 12 months (2.5% handling fee applies)
- 0% on purchases for 3 months and a fantastic range of benefits
|
|
|
|
MBNA Platinum Rewards
- Typical 15.9% APR variable & rewards!
- 0% on balance transfers until May 2009 (2.9% handling fee applies)
- 0% on purchases until July 2008
|
|
|
|
personal loans |
|
|
Alliance & Leicester
- 7.7% APR Typical
- On loans from £7,500 to £15,000
- 1 to 5 year term. Apply online
|
|
|
|
homeowner loans |
|
|
Ocean Finance
- Need extra cash? Nothing to repay for up to 3 months
- Do you want to borrow £5,000 - £100,000 for any purpose?
- Apply today for a no obligation free quote. All circumstances considered
|
|
|
|
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 |
|
|
Protected
- We search over 300 insurance plans
- From 12 leading providers
- Compare your options online today in minutes
|
|
|
|
Norwich Union
- We just make it easier
- We can't make you immortal
- We can offer you life insurance from £10 a month
|
|
|
|
Tesco Life
- Now up to 10% cheaper. Find cheaper and we'll give you 1,000 Clubcard Points
- Great value cover for your family and mortgage
- Help protect your families lifestyle
|
|
|
|
|
Moneynet is a trading name of Sterling Business Consultants Limited of Sussex House, 8-10 Homesdale Road, Bromley, BR2 9LZ. Registered office is 51 Eastcheap, London EC3M 1JP, Reg No: 03165711. Moneynet is authorised & regulated by the Financial Services Authority. This site is intended for UK residents only. Information correct at time of publication.
|
|
You are subscribed to the Moneynet.co.uk newsletter. Unsubscribe
|
|
