The Times (Bricks & Mortar)
(Image courtesy of nearlylegal.co.uk)
Do you fear the repo man? Statistics say that tens of thousands of us will be doing just that this year if we aren’t doing it already. Double digit rises in utility and food bills – not to mention fuel prices, are taking their toll. Inflation is directly related to the Bank of England base rate of interest, and because it is running high at the moment, it seems unlikely that there will be a rate cut anytime soon. Unfortunately, because of the credit crunch, even cuts in interest rates won’t be necessarily passed onto the borrower by the banks.
All of the above means that now is a particularly bad time to default on your mortgage – or any other loan come to think of it. Because the mortgage market has tightened up so much in the last few months you will need a spotless credit history to have access to the best loan products in the future. The days of banks lending to the so-called “sub-prime” market (people with bad or non-existent credit histories) are well and truly passé. So what do you do if you’re struggling to meet your next mortgage payment? Here are some suggestions: