In “Mortgages, Money and Magic” I relay a plan where anyone on an average wage can pay off their mortgage within 10 years. As a mortgage (or rent for those who let) is one of life’s biggest costs it makes sense to shake off the debt as soon as possible. Once the mortgage has gone it could create the freedom in your life to:
Spend quality time with your family and friends.
Be more full of life as opposed to living Groundhog Day.
Follow opportunities that you wouldn’t have time for before.
Make a contribution to the world.
Take on a job which reflected your values or interests as opposed to being a wage slave.
For me, being Mortgage free would mean the end of the 9-5 routine. I could get up when I wanted, read the books I wanted to read, participate in hobbies, and most importantly spend time with my loved ones. Live would be for living!
However, there are still bills to pay when your mortgage is finished. There is still council tax and utility bills. Insurances and food. I have dealt separately with building residual income streams, but in this article I wanted to show that ending your job can actually free up cash. Look at it this way:
Commuting – by not working we no longer have to indulge in the tedious daily pursuit of commuting. The average distance traveled by UK workers is 8.5 miles to work making a round trip of 17 miles. At 15p a mile that makes the weekly petrol cost up to £12.75 or £55.25 per month. We should also take into account wear and tear, road tax, car insurance and parking. Therefore by giving up work you could save roughly £100 per month on traveling.
Work clothes – if you no longer work, or work from home there is nothing stopping you staying in your pyjama’s for the whole day. There’s no need to get a new suit every six months, makeup, fancy shoes, briefcases or even shaving foam! In total, another saving of at least £25 per month.
Meals – it’s hard to get away from shelling out at least a couple of quid on meals everyday but if your no longer in the rat race you’ll have had such a healthy breakfast you’ll no longer need the midday sugar rush.
Childcare – if you are no longer in full time work you’re going to make a saving in Child Care cost. Remember the Golden Rule with Kids – Presence is more important than presents. A day spent having fun with your kids is worth a million nights of coming home knackered and slumping in front of the TV, irritated by the children’s noise. £140 per month saved for those with kids.
Escape Costs – if you day is spent doing worthwhile and rewarding activities they’ll be less need to “treat yourself” with escapist activities such as boozing, meals out, cinema trips, ten pin bowling etc. We shall quantify this as a saving of £50 per month.
No more daily grind – we refer to work as the daily grind because that is exactly what it is. By avoiding it our health will naturally improve. When others are in their 1m x 1m cubicle you could be in the park with the kids, down at the sauna or hiking round your local hills. Which do you think is healthier? It’s hard to put a monetary value on your health but it’s obvious that savings are there to be made. Prescriptions and medicine are the obvious ones. Let’s average it out at £10 per month.
In “Mortgages, Money and Magic” I recommend avoiding Foreign Holidays as a means to making overpayments on your mortgage. This sacrifice is easier to make if you no longer have a 9-5 job – every day is a holiday! Save yourself £100 per month easy.
There are numerous over little savings that can be made too: reduced mobile phone bills, less mileage to Conferences etc, trade magazines no longer required, less need to buy raffle tickets/ sponsor workmates. The list goes on.
In summary if you need £1000 to live on when you are a worker; this could easily be reduced to about £750 when “work-related” costs are removed. Think about these when planning your future after your mortgage is paid off.
Wednesday, 30 July 2008
Monday, 28 July 2008
www.uncommonadvice.co.uk is proved right yet again!
A report released today by the National Housing Federation has put forward the view that the average house price in the UK will rise over the next 5 years by 25%. before you say it, this report was not drafted by council lefties but rather Oxford economists. They predict that house prices will fall by 2.1% in 2009 and then increase by 1.3% in 2010, 5.2% in 2011, 9.2% in 2012 and 9.3% in 2013.
The Chief Executive of the federation stated that, "..... despite concerns about the current market downturn, house prices will resume upwards". All markets abide by the rules of supply and demand, so lets look at the basics:
The Chief Executive of the federation stated that, "..... despite concerns about the current market downturn, house prices will resume upwards". All markets abide by the rules of supply and demand, so lets look at the basics:
- the total number of new homes expected to be completed in 2008 is likely to be 120,000 against a government target of 200,000.
- one in every 4 local authority areas has seen its housing list double but the slowdown in newbuilds means that there is less public housing coming on stream.
- 1.5million people in the UK live in an overcrowded house.
- 73,360 households are officially homeless.
Mark my words 2008 is going to be remembered as a blip in an otherwise upwards house price trajectory. Therefore, it is of vital importance for First Time Buyers to act now - especially in the areas where it is still possible to get a 3 bedroom property with parking for less than £125,000; namely, the North East, the North West, the East Midlands and the West Midlands.
The fundamentals are still in place. It is simply the case that a herd mentality has spread across the country. Don't wait to buy property - buy property then wait! Mark my words
Pay off your Mortgage in 10 years - avoid the 7 Deadly Sins!
It’s amazing how many of the new ideas and theory’s that come out are simply a rehash of previous doctrines. Look at the Law of Attraction – and then compare it to ideas set out in the bible 2000 years ago, “ask and it shall be given unto you, seek and ye shall find”. In “Mortgages, Money and Magic” I set out a plan as to how any average couple can buy a property without requiring a deposit and then go on to own that property outright within 10 years. Obviously you can’t make an omelette without breaking some eggs. Sacrifices have to be made. Here I will look at the 7 main sacrifices as they relate to the 7 deadly sins.
Envy – When someone buys themselves a new car or a new holiday you are going to be jealous. You have to realise though that you don’t need material things to make yourself feel better. The person with the new car has probably dug themselves deeper into debt to get the short lived buzz of having something new. Think of the car, the holiday or anything else that will be available to you when the millstone of a mortgage is taken off your neck. Sacrifice getting a new car – stick to secondhand.
Pride – It’s good to support your team, but with the average in the Premiership season ticket at £615 it’s not cheap. Try to achieve value for money in everything you do. Learn to do without. I can guarantee you that going to football matches is something that can quite easily be substituted for other less expensive pastimes. Sacrifice going to the Football.
Sloth – You get nothing for nothing. In order to pay off your mortgage within a decade it is necessary to get off your bottom and actually earn some cash. The beauty of my plan however is that I can show you how to do it without being a city whiz kind. An “average” job paying £22,000 to £26,000 would be sufficient. If necessary sacrifice evenings and weekends now so that your mortgage is paid off by the time you reach middle age. You’ll have more time than ever when your mortgage is paid off whilst your contemporaries are still struggling.
Greed – it’s never good to have too much of something so make your money compartmentalized. You should have a fund for repairs, a fund for food, a fund for clothes etc. By separating your cash out it makes it much harder to get greedy. All greed is ultimately self-destructive but make sure you sacrifice the worst source of greed – alcohol.
Wrath – Don’t get angry when someone lights up next to you, think of the money they are burning away when they buy that packet of ciggies – and feel safe in the knowledge that you will be mortgage free whilst they are literally burning cash daily. Sacrifice the fags.
Gluttony – there is no need to be a glutton with takeaway after takeaway when it is possible to eat like a king for 50p a night. Get creative in the kitchen and your wallet AND waistline will benefit.
Lust – having a sex drive can be the impetus for a lot of good change in your life, but draw the line when the lust inside you means you are throwing money down the pan. Make sure you embark on this plan with the person you intend to be with for the duration. Sacrifice the casual relationships.
In summary, without winning the lottery or having a massive life insurance payout, paying off your mortgage within 10 years is going to take many sacrifices. Deep down we know that these sacrifices are for the best because the Seven Deadly sins are all instinctive. They are innate. To achieve the goal you must: sacrifice the new car; sacrifice the foreign holiday; bring in at least an average wage; sacrifice cigarettes and alcohol; sacrifice the takeaways and sacrifice the casual sex.
If you have the strength of character to achieve this then you are well on the way to being able to pay your mortgage off in a decade.
Envy – When someone buys themselves a new car or a new holiday you are going to be jealous. You have to realise though that you don’t need material things to make yourself feel better. The person with the new car has probably dug themselves deeper into debt to get the short lived buzz of having something new. Think of the car, the holiday or anything else that will be available to you when the millstone of a mortgage is taken off your neck. Sacrifice getting a new car – stick to secondhand.
Pride – It’s good to support your team, but with the average in the Premiership season ticket at £615 it’s not cheap. Try to achieve value for money in everything you do. Learn to do without. I can guarantee you that going to football matches is something that can quite easily be substituted for other less expensive pastimes. Sacrifice going to the Football.
Sloth – You get nothing for nothing. In order to pay off your mortgage within a decade it is necessary to get off your bottom and actually earn some cash. The beauty of my plan however is that I can show you how to do it without being a city whiz kind. An “average” job paying £22,000 to £26,000 would be sufficient. If necessary sacrifice evenings and weekends now so that your mortgage is paid off by the time you reach middle age. You’ll have more time than ever when your mortgage is paid off whilst your contemporaries are still struggling.
Greed – it’s never good to have too much of something so make your money compartmentalized. You should have a fund for repairs, a fund for food, a fund for clothes etc. By separating your cash out it makes it much harder to get greedy. All greed is ultimately self-destructive but make sure you sacrifice the worst source of greed – alcohol.
Wrath – Don’t get angry when someone lights up next to you, think of the money they are burning away when they buy that packet of ciggies – and feel safe in the knowledge that you will be mortgage free whilst they are literally burning cash daily. Sacrifice the fags.
Gluttony – there is no need to be a glutton with takeaway after takeaway when it is possible to eat like a king for 50p a night. Get creative in the kitchen and your wallet AND waistline will benefit.
Lust – having a sex drive can be the impetus for a lot of good change in your life, but draw the line when the lust inside you means you are throwing money down the pan. Make sure you embark on this plan with the person you intend to be with for the duration. Sacrifice the casual relationships.
In summary, without winning the lottery or having a massive life insurance payout, paying off your mortgage within 10 years is going to take many sacrifices. Deep down we know that these sacrifices are for the best because the Seven Deadly sins are all instinctive. They are innate. To achieve the goal you must: sacrifice the new car; sacrifice the foreign holiday; bring in at least an average wage; sacrifice cigarettes and alcohol; sacrifice the takeaways and sacrifice the casual sex.
If you have the strength of character to achieve this then you are well on the way to being able to pay your mortgage off in a decade.
Sunday, 27 July 2008
Never rent! There are easy rules to follow to find your perfect house!
You can’t get rich renting. You can’t get rich renting. You can’t get rich renting.
If you rent for a lifetime then you will spend hundreds of thousands of pounds and end up exactly where you started – owning nothing. If you buy a house and pay down your mortgage you will eventually own a tangible asset. Unfortunately for us, Houses aren’t available for £99 down at your local IKEA. Most of us are going to need to take on debt in the form of a mortgage in order to make a house purchase. At the moment, due to the Credit Crunch, many people are seeing renting as a better alternative to taking on a mortgage, and who could blame them? Mortgage rates are the highest they have been for decades, large deposits are required – and what for? The house you buy is likely to be worth a lot less this time next year. Remember though that you can’t get rich renting! So how do you work your way through the maze and decide how much of a house is enough? Here are the easy rules I would follow:
· Visit www.rightmove.co.uk
· Search for properties for sale in your town.
· In the search filters only look at resale houses with 3 bedrooms and display with lowest prices first.
· Ignore properties in the worst two areas of town.
· Write down the first 3 properties you come across which are available with Off Road Parking.
· View all 3. Offer the same amount of money on all 3 (at least 10% less than list price). Work upwards until the first acceptance.
I recommend offering the same on all three houses because this is not a beauty contest. From the outset I would make my intentions clear to the Estate Agent. I would say something like, “I am interested not only in this property you have to offer Mr Estate Agent, but also another two with your competitors. I have no particular favourite – I just want one of them at the cheapest price possible”. I guarantee you that as soon as the Estate Agent knows that you are also looking elsewhere they will redouble their negotiation efforts with the vendor. If two agents come back at the same price then pick the one you prefer – thinking long term.
I guarantee you that in three quarters of the UK you will find a property available that fits within the above criteria at under £125,000.
Have a look at www.uncommonadvice.co.uk to find out how you can then go on to purchase that property and pay the mortgage off within 10 years.
If you rent for a lifetime then you will spend hundreds of thousands of pounds and end up exactly where you started – owning nothing. If you buy a house and pay down your mortgage you will eventually own a tangible asset. Unfortunately for us, Houses aren’t available for £99 down at your local IKEA. Most of us are going to need to take on debt in the form of a mortgage in order to make a house purchase. At the moment, due to the Credit Crunch, many people are seeing renting as a better alternative to taking on a mortgage, and who could blame them? Mortgage rates are the highest they have been for decades, large deposits are required – and what for? The house you buy is likely to be worth a lot less this time next year. Remember though that you can’t get rich renting! So how do you work your way through the maze and decide how much of a house is enough? Here are the easy rules I would follow:
· Visit www.rightmove.co.uk
· Search for properties for sale in your town.
· In the search filters only look at resale houses with 3 bedrooms and display with lowest prices first.
· Ignore properties in the worst two areas of town.
· Write down the first 3 properties you come across which are available with Off Road Parking.
· View all 3. Offer the same amount of money on all 3 (at least 10% less than list price). Work upwards until the first acceptance.
I recommend offering the same on all three houses because this is not a beauty contest. From the outset I would make my intentions clear to the Estate Agent. I would say something like, “I am interested not only in this property you have to offer Mr Estate Agent, but also another two with your competitors. I have no particular favourite – I just want one of them at the cheapest price possible”. I guarantee you that as soon as the Estate Agent knows that you are also looking elsewhere they will redouble their negotiation efforts with the vendor. If two agents come back at the same price then pick the one you prefer – thinking long term.
I guarantee you that in three quarters of the UK you will find a property available that fits within the above criteria at under £125,000.
Have a look at www.uncommonadvice.co.uk to find out how you can then go on to purchase that property and pay the mortgage off within 10 years.
Friday, 25 July 2008
4 Reasons why real Property Investors need to wake up NOW!
Throughout history it is amazing to note that many, many millionaires have made their fortunes whilst others are mumping around complaing about their misfortunes and generally whining baout the economy. The best example I can think of is Joe kennedy (the father of John F. Kennedy) who was one of the only men to come out of the Stock Market Crash of 1929 smelling of roses. These men of steel show repetitive traits - they have a plan and they stick to it. They stay calm whilst all around them people are losing their heads. We should adapt these traits to the current UK housing situation. If you are an investor then now is actually the best time to be in the game for a long time. Look at the current opportunities and fomulate a strategy around them:
1. Repossession rates are going through the roof! All over the UK people are facing rate shock as they come off their fixed rates. The increased monthly payments lead to arrears. Elsewhere, increased costs at the fuel pumps, and higher expenses at the checkout are pushing more and more pressure onto the family purse. For some, this undoubtably leads to breaking point. Repo's are now running at almost the highest rate since records began. Although unfortunate for those concerned, the flood of cheap properties onto the market makes it Christmas Day for the Professional Investor.
2. Less competiton. Two summers ago a competitively priced house coming onto the market in a readily lettable area would have created a furore. Investors would be heading down to the Estate Agents like a flock of geese. Now the same property would hardly raise an eyebrow even with a For Sale board up, an editorial in the local rag, a highlighted position on Rightmove, 500 mailings and 50 call outs. No-one is buying! Therefore, as an Investor you will have your pick of th bunch. I am not overexaggerating here. At this moment in time I can reliably reveal that there are probably 3 or 4 investors still actively buying in Corby, Northants, perhaps 1 in Wellingborough and roughly the same in Rushden. If we assume that this picture is replicated across the country then we can extrapolate and predict that there is (very roughly) about 6000 investors buying at the moment in the UK. 6000 people have their choice of thousands upon thousands upon thousands of bargains. Choice breeds bargains. It is a buyers market.
3. Estate Agents are getting desperate. Imagine if you went back in time to a year ago and called your local Estate Agent to offer £85000 on a property which was on the market for £100000. I can guarantee you that that offer would be immediately placed in "the round file" (dustbin). the agent wouldn't even bother passing the offer on to the vendor. Today it is a completely different story. The agent may be wondering where there next wage cheque is coming from and will therefore do everything they can to make the deal happen. You;d be amazed how much influence an agent has on local house prices at a micro-level. Throw in the offer and then let the agent do their stuff. If the agent poo poos you then move on and find a more pro active firm to deal with.
5. Rents are creeping up. Ok, please imagine two situations. In the first instance you are a FTB couple who would have possibly bought a house together last year but now can't due to the Credit Crunch restrictions. In the second instance you are a family who are beginning to struggle due to rate shock and are looking to get off the ladder. Now, there are two sides to every story. What goes up must come down. If there are losers like the two examples then there must consequently be winners too. The winners are landlords because all the people who are in the situations referred to above will end up in rental sector. With the reduced supply of rental houses (due to the near disappearance of BTL mortgages) properties that means that a sellers (or Landlords more correctly) market is being created. Rents will naturally rise as market condtions prevail.
Read this article and understand - now is the time to buy.
1. Repossession rates are going through the roof! All over the UK people are facing rate shock as they come off their fixed rates. The increased monthly payments lead to arrears. Elsewhere, increased costs at the fuel pumps, and higher expenses at the checkout are pushing more and more pressure onto the family purse. For some, this undoubtably leads to breaking point. Repo's are now running at almost the highest rate since records began. Although unfortunate for those concerned, the flood of cheap properties onto the market makes it Christmas Day for the Professional Investor.
2. Less competiton. Two summers ago a competitively priced house coming onto the market in a readily lettable area would have created a furore. Investors would be heading down to the Estate Agents like a flock of geese. Now the same property would hardly raise an eyebrow even with a For Sale board up, an editorial in the local rag, a highlighted position on Rightmove, 500 mailings and 50 call outs. No-one is buying! Therefore, as an Investor you will have your pick of th bunch. I am not overexaggerating here. At this moment in time I can reliably reveal that there are probably 3 or 4 investors still actively buying in Corby, Northants, perhaps 1 in Wellingborough and roughly the same in Rushden. If we assume that this picture is replicated across the country then we can extrapolate and predict that there is (very roughly) about 6000 investors buying at the moment in the UK. 6000 people have their choice of thousands upon thousands upon thousands of bargains. Choice breeds bargains. It is a buyers market.
3. Estate Agents are getting desperate. Imagine if you went back in time to a year ago and called your local Estate Agent to offer £85000 on a property which was on the market for £100000. I can guarantee you that that offer would be immediately placed in "the round file" (dustbin). the agent wouldn't even bother passing the offer on to the vendor. Today it is a completely different story. The agent may be wondering where there next wage cheque is coming from and will therefore do everything they can to make the deal happen. You;d be amazed how much influence an agent has on local house prices at a micro-level. Throw in the offer and then let the agent do their stuff. If the agent poo poos you then move on and find a more pro active firm to deal with.
5. Rents are creeping up. Ok, please imagine two situations. In the first instance you are a FTB couple who would have possibly bought a house together last year but now can't due to the Credit Crunch restrictions. In the second instance you are a family who are beginning to struggle due to rate shock and are looking to get off the ladder. Now, there are two sides to every story. What goes up must come down. If there are losers like the two examples then there must consequently be winners too. The winners are landlords because all the people who are in the situations referred to above will end up in rental sector. With the reduced supply of rental houses (due to the near disappearance of BTL mortgages) properties that means that a sellers (or Landlords more correctly) market is being created. Rents will naturally rise as market condtions prevail.
Read this article and understand - now is the time to buy.
The stupidest thing people say about property
The stupidest thing I hear people say at the moment is "I'm waiting until the property market bottom outs until I buy!". Who do you think you are - Donald Trump. The reason this is such a crazy thing to come out with is because:1. There is no such thing as a UK property market. Even within a single street house prices move as amazingly different paces. Take the example of a street I know well. On this street I've seen 3 bed terraces sell for £100,000 then £90,000 then £80,000 over the last 6 months - but try telling this to Mr. Hard Nosed Vendor at no.42 who is sticking to his guns with an asking price of £129,950! If we can't get a single message across within the space of 200 yards, what chance across the whole nation?2. Who knows when the market has hit rock bottom? I jokingly said at the start that you'd have to have the business acumen of Donald Trump to time the market but perhaps this analogy is not too far from the truth. How many people do you know who purposefully timed the 80s property boom correctly? How many got in and got out of the Dot Com boom in the black? How many made a killing when gold tripled between 2006 and 2008? How many bought Vodafone stock the week before they got a 3G licence? I'm going to guess that the answer to all these questions is none or not many. So why, oh why, do we listen to the pub know it alls when it comes to property? 3. Just because you wait for the market to bottom out doesn't mean that everyone else will. There is an old saying that the deal of a lifetime comes along every week - and this is as true in property as it is in other investments realms. Whilst you are waiting for the perfect deal others will have bought crackers? Don't get paralysis by analysis. By all means do your research and due dilligence but make sure that when a deal fits you don't let it pass by - just in case the market hasn't quite reached rock bottom.
In summary realise that there is no such thing as the UK housing market no matter what the Daily Hate may like to tell you. If you find a property that is a good deal then don;t rest on your laurels. Buy when the sale is on!
In summary realise that there is no such thing as the UK housing market no matter what the Daily Hate may like to tell you. If you find a property that is a good deal then don;t rest on your laurels. Buy when the sale is on!
Mortgage Misery - The 3 hurdles faced by First Time Buyers
The "Credit Crunch" refers to the fact that it is now more difficult for a First Time buyer to get a mortgage than at any time since the 1970s - but why is it harder? What have the banks actually done to make it harder. There are 3 main hurdles that First Time Buyers have had put in front of them.
1. Higher Lending rates. In 2006 it was possible to get a 2year fixed 125% mortgage from Northern Rock at 5.79%. Now even a 90% 2 year fixed rate is going to cost upwards of 7%. However - there is a way to get round this. By negotiating with the vendor to achieve a "vendor gifted deposit" of 10%, it is possible to get a rate of 6.44%. On this rate a mortgage of £92000 is going to cost less than £500 - still cheaper than renting. It is important to remember that although 6.44% may seem high, rates are still historically low. If you can own a property (even on interest only) for around about the same monthly cost than renting then it always makes sense to make the purchase - particularly when your deposit is being paid for you.
2. Larger deposit required. "LTV" is the key acronym of the Credit Crunch. It stands for Loan to Value and refers to the size of your deposit as compared to the value of your house. 10% LTV good/ 99% LTV bad. Firstly, the "Together" mortgage, where a FTB was given enough money to purchase the property and surplus cash up to the lesser of 25% of the property value or £30k. Very soon afterwards 100% mortgages went. 95% mortgages are still in existence but are as rare as the rocking horse proverbial. In reality though a FTB can get a 90% mortgage by once again negotiating a 10% Vendor Gifted Deposit,
3. Banks have added more rules. This is ture. In terms of properties, FTB's shouldn't go out looking to max themselves out with 5x joint income mortgages - banks just wont stretch that far at the moment. Banks have also taken a distinct dislike to New Build Flats but who can blame them? Thousands of these are lying empty across England. Obviously the Credit Crunch has also meant that those with Bad credit will now struggle to get a mortgage. Is this surprising though? If you have bad credit the get used to renting. For the frest of the First Time Buyers ot there though, if you are 18 and earning, have ID and a Credit Report then you are likely to be eligible for a mortgage.
In conclusion, don't believe the hype in the newspaper. It is true that the Credit Crunch has meant that rates have went up, LTV's have came down and criteria has tightened but all this must be weighed up against the fact that house prices have fallen and many, many vendors have became more realistic on prices as opposed to shoving it on the market at a ridiculous price and waiting for the market to catch up.
1. Higher Lending rates. In 2006 it was possible to get a 2year fixed 125% mortgage from Northern Rock at 5.79%. Now even a 90% 2 year fixed rate is going to cost upwards of 7%. However - there is a way to get round this. By negotiating with the vendor to achieve a "vendor gifted deposit" of 10%, it is possible to get a rate of 6.44%. On this rate a mortgage of £92000 is going to cost less than £500 - still cheaper than renting. It is important to remember that although 6.44% may seem high, rates are still historically low. If you can own a property (even on interest only) for around about the same monthly cost than renting then it always makes sense to make the purchase - particularly when your deposit is being paid for you.
2. Larger deposit required. "LTV" is the key acronym of the Credit Crunch. It stands for Loan to Value and refers to the size of your deposit as compared to the value of your house. 10% LTV good/ 99% LTV bad. Firstly, the "Together" mortgage, where a FTB was given enough money to purchase the property and surplus cash up to the lesser of 25% of the property value or £30k. Very soon afterwards 100% mortgages went. 95% mortgages are still in existence but are as rare as the rocking horse proverbial. In reality though a FTB can get a 90% mortgage by once again negotiating a 10% Vendor Gifted Deposit,
3. Banks have added more rules. This is ture. In terms of properties, FTB's shouldn't go out looking to max themselves out with 5x joint income mortgages - banks just wont stretch that far at the moment. Banks have also taken a distinct dislike to New Build Flats but who can blame them? Thousands of these are lying empty across England. Obviously the Credit Crunch has also meant that those with Bad credit will now struggle to get a mortgage. Is this surprising though? If you have bad credit the get used to renting. For the frest of the First Time Buyers ot there though, if you are 18 and earning, have ID and a Credit Report then you are likely to be eligible for a mortgage.
In conclusion, don't believe the hype in the newspaper. It is true that the Credit Crunch has meant that rates have went up, LTV's have came down and criteria has tightened but all this must be weighed up against the fact that house prices have fallen and many, many vendors have became more realistic on prices as opposed to shoving it on the market at a ridiculous price and waiting for the market to catch up.
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