Solution Mortgages News

Solution Mortgages news on bad credit remortgages, poor credit remortgages and for people with arrears & ccj’s. Remortgage news with regards to the adverse credit market and people with sub prime credit.

Tuesday, June 17, 2008

Sick of all the doom and gloom?

The continual depressing reports in the press regarding the impact of the credit crunch is enough to make the most optimistic of people feel deflated.

However, it is worth asking how much of these press reports are based on solid data and those that are based on the need to put out scaremongering headlines which sell papers.

There is no denying that the financial events which have occurred since August 2007 in both the US and the UK have caught everyone by surprise and have left people feeling fragile and exposed. The size and speed of the shock to financial markets has left us all wondering what will be next and when will things turn around. Corporate and retail expectations have subsided dramatically and profit warnings from companies have not been as regular since 2001.

But if we look at the latest mortgage data things do not look as bad as first thought. It is obvious that mortgage transactions have fallen sharply and without further action in money markets lenders will have to limit the extent of their lending but if you take into account remortgage activity things do not look as bleak.

Banks have actually seen a rise of 15% in remortgage volumes since last year and competition in the sector should intensify again later in the year. The FSA estimate that 1.4 million borrowers need to refinance their existing fixed rate deals during 2008 which will keep activity high.

It is important to make sure that we do not talk ourselves into a downward spiral and effectively recession but this seems to be what the press want. Forward looking behaviour and clear analysis of data is what is required in times of adversity not the conflicting, poorly collated stories we read in the newspapers.

If you have any comments on this article, please feel free to contact Solution Mortgages on 0845 123 1260.