Mortgage meltdown

temi

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Apr 28, 2008
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It was announced today (29/09/08) that the mortgage approvals for the month of August 2008 was 2% of mortgage approval for the same month in 2007. The credit crunch is bitting much harder than anyone can imagine, what is your take on this?
 
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Tony

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Apr 7, 2008
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It is hard to believe there was a discussion on here a few month back and the general feeling was that it couldn't get any lower. This is the full story about the reduction in mortgage approvals from the Guardian:

The number of mortgages approved for home purchases hit a record low in August, figures showed today, as falling house prices, a poor economic climate and speculation about stamp duty put the housing market on hold.

Just 21,086 people took out loans to purchase homes - less than two-thirds of the average for the past six months, according to the British Bankers' Association (BBA). The number of people remortgaging also fell to 47,765 compared with a six-month average of 66,626.
Mortgage approvals hit record low | Money | guardian.co.uk
 

Tony

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There is another worrying statement in this article with regard to lending on credit cards going up. This suggests to me that people are struggling with day-to-day finances and putting more and more on their credit cards.
 

temi

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Apr 28, 2008
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There is another worrying statement in this article with regard to lending on credit cards going up. This suggests to me that people are struggling with day-to-day finances and putting more and more on their credit cards.
Yes, as other sources of credit dry up people are turning to their credit card more and more, the interest on that is quite uncompetitive as we all know.
 

TVDinner

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Sep 28, 2008
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The situation in the USA is not exclusive to just our country. But if the entire USA financial system collapses like it is about to do, it will have terrible effects on the rest of the world as the situation snowballs. Hopefully we will be able to bail out our companies and the entire system will stabilize again.
 

temi

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The situation in the USA is not exclusive to just our country. But if the entire USA financial system collapses like it is about to do, it will have terrible effects on the rest of the world as the situation snowballs. Hopefully we will be able to bail out our companies and the entire system will stabilize again.
Looks like a deal has been done (to be voted for by the congress) at US to stop the system collapsing.

Let hope that is in place very soon to stop the situation worsening
 

TVDinner

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Sep 28, 2008
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Let's hope the big election does not slow down the process and mess everything up because egos get in the way with each side wanting credit for fixing the mess. lets hope...
 

temi

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Let's hope the big election does not slow down the process and mess everything up because egos get in the way with each side wanting credit for fixing the mess. lets hope...
I think it will be done and dusted way before the elections, it should be passed in a matter of days
 

Tony

What Consumer Founder
Apr 7, 2008
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The situation in the USA is not exclusive to just our country. But if the entire USA financial system collapses like it is about to do, it will have terrible effects on the rest of the world as the situation snowballs. Hopefully we will be able to bail out our companies and the entire system will stabilize again.
I agree but it is a shame they could not do more for the people on "main street" rather than just "wall street". If they had helped out the people who had got themselves into a tricky situation then we all wouldn't be in this situation. Hindsight is great isn't it.
 

katealpha

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Sep 1, 2008
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I'm just thankful I got my remortgage sorted out earlier this year (June). It was hard enough getting a reasonable deal then and I imagine now it must be harder. I have some friends who have just come off a fixed rate deal and are looking around and they are having a nightmare.
 

temi

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I have some friends who have just come off a fixed rate deal and are looking around and they are having a nightmare.
I think your friends should let the dust settle on the on going crisis before they sign up for any remortgage deal, I don't think there are many good offers out there at the moment.
 

pokerface

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Oct 1, 2008
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its the hype thats doing the most damage. If people fear there money is not safe they will take it out of the bank. If people fear the cannot afford a credit card or a mortgage, they will wait until they feel safe again