Matthew Bretherton’s take on the mortgage issues…
Posted by markharrison on June 24, 2008
Matthew Bretherton, a freelance writer (and not, to my knowledge) an investor, has written a great article about what the current credit crunch means to a typical UK homeowner.
You can read his article, “From Smug To Mug”, here at money.co.uk
I like his conclusion:
But there’s not a lot of point moaning about it. We’ve had it relatively good for years, so we’ve all been saving like mad for just this eventuality right? No, me neither. We’ve all been busy taking part in an orgy of high street spending without a giving the future a second thought. Now we just have to be terribly grown up about paying for it all.
Personally, I’ll probably do what I always do. Start looking early and hope to find a good deal (remember, once you secure a mortgage offer it is valid for three months). I don’t know if it will be a two year fixed this time, but I do know I’ll be feeling a lot less smug this time round. More mug in fact.
And that really sums up the problem that “middle England” is now facing – easy credit meant that people borrowed more, and then spent it, rather than saved. Suddenly, cash is not so much King as God-Emperor.
Matthew’s point about looking for finance as early as possible is very well made – don’t leave financing to the last minute!