Credit Crunch Spells the End of Inflated House Prices

Following the recent down turn in the market, we will be looking at a more sensible and stable housing market.

The credit crunch has called for officials to analyse the mistakes that have been made and we are being told that the days of mortgages valued at five times a salary are over, as are inflated house prices.

Although the credit crunch caught many off guard – many who have been living on the credit – the credit crunch will now correct the problems caused by lending to those who cannot afford repayments.

The credit crunch, will leave in its wake, many repossession and the end of property ownership dreams as well as negative equity, but hopefully this will be the last time that we such an economic decline.

The problem, that many are now facing up to, is the fact that borrowing more than you could actually afford was only going to land you in hot water.

Fault has rightly be placed with the banks and The Bank of England is calling for tighter controls on the way that money is lent.We were living in a credit bubble that has now burst.Property shows that glorify and ‘fuel the greed’ for easy money have also been blamed and it is worth noting that although people have made money through property development, these people are few.

The days of being obsessed with the value of your home is over and a time when we bought a house because we fell in love with it is just around the corner.   We are going to go back to saving and buying a property because it suits the needs of our family and it is where you want to live.

The Government is now tackling this by pushing shared ownership and affordable housing.  This type of social housing is giving people the chance to get onto the property ladder without getting further into debt and having a realistic idea of what they can actually afford.If you want to speak to an expert about your mortgage or a shared ownership mortgage, then contact Click n go Mortgages on 0845 0945 474 or email us here.