February 25, 2009
Do you give £12,000 to each child?
Story link: Do you give £12,000 to each child?
With banks tightening up on lending in all sectors, including the unsecured loan sector, it is only natural that parents will feel it is their duty to help out their children by offering them interest free loans or even cash gifts.
A lot of cash coming from parents is to aid house purchases, but in a lot of cases, it is to consolidate existing debts.
Do you give £12,000 to each child?
Scottish Widows said that adult children were sapping their parents and grandparents of large amounts of money, forcing them to cut back on daily spending and to take on more debt.
“When times are as tough as they currently are, this is the last extra burden parents need,” said Gordon Greig, head of Savings and Investments at Scottish Widows.
February 23, 2009
100% mortgages to make an appearance?
Story link: 100% mortgages to make an appearance?
I thought that 100%+ mortgages were just a distant memory, but it seems that Coventry Building Society are taking their chances by offering a 100% mortgage once more!
12 months ago, an average property buyer could get a 125% mortgage if the deal was right, but lately 75%LTV seems to be the going rate, so a 100% mortgage deal would definitely increase their business!
100% mortgages to make an appearance?
100% mortgages used to be things you could get quite easily…
…but then as the credit crunch hit, many mortgage lenders wanted to reduce their risk, and so 100% mortgages died a death.
Now, Coventry Building Society has thrown a lifeline to those of you in negative equity after becoming the first mortgage lender to offer remortgage deals worth 100% of a property’s value.
February 9, 2009
Sub prime warning
Story link: Sub prime warning
The problem is, people will always be forecasting doom and gloom so its hard to know when to take them completely serious.
The disaster that we currently have on our hands is a development from the 2007 sub prime lending, but anyone predicting that now, Is slightly slow off the mark!
We can’t say we haven’t been warned. The doom-mongers reckon America’s property market is on the verge of a new crisis as big as the subprime disaster that began in 2007.
The fear is that borrowers with better credit histories, who took out Alt-A mortgages, are defaulting on a similar scale.
IMF to run out of cash
Story link: IMF to run out of cash
Dominique Strauss-Kahn is right, why should they continue to bail out failing economies, when there is no signs of a turn around.
Nothing so far, that the government has put into place, has made a major affect. The Recent VAT cut being one of them. While many industries may benefit slightly, its just simply not enough.
Dominique Strauss-Kahn said the Fund needed an urgent cash infusion if it was to continue bailing out troubled economies in the future. Mr Strauss-Kahn also indicated that the world’s advanced economies were now tipping from recession into full-blown depression, cementing fears about the scale of the economic slump in rich nations.
The IMF head made the comments in Kuala Lumpur in Malaysia over the weekend, where he is attending a meeting of central bankers from Southeast Asia. The Fund has bailed out a number of countries including Iceland, Latvia and Pakistan but Mr Strauss-Kahn said there would be many others in need of help in the months ahead.
February 7, 2009
Workers to combat debt in Ireland
Story link: Workers to combat debt in Ireland
Workers will be now combating debts in a different way to simply paying them off when they think they have the spare cash.
Around 350,000 workers will have a percentage of their wage bill slashed in an effort to decrease the amount of deficit.
Workers to combat debt in Ireland
Lawmakers backed a government plan Thursday to begin deducting about 7 percent from the paychecks of 350,000 workers — Ireland’s most aggressive move yet to combat a swelling deficit.
Finance Minister Brian Lenihan told Dail Eireann, the Irish parliament, that the new charges were essential to help reverse Ireland’s debt crisis and reassure international markets that Ireland is not in danger of defaulting on loans.