There are a number of aspects of every day life that are starting to gradually go up. It’s been highly publicized that the cost of Diesel and Petrol for cars has skyrocketed, since the beginning of the year initially going over one pound per litre but now it is more like £1.20 for petrol and £1.30 for Diesel.
Fuel isn’t the only area being inflated, food costs are gradually raising too, when you consider these two commodities alone are things we need to buy constantly and literally can not live without we may be facing trouble.
Whilst this means we’re spending more on food and fuel among other things it means that somewhere else is going to be feeling the pinch of our money being spent up. The mortgage and lending industry is suffering from recent problems in the banking world. Some blame Northern Rock’s failings but also the sub-prime mortgage lending that has been going on in the USA.
Mortgage lending has obviously slowed as a result of these changes and this reluctance may have come at the worst time when people are struggling with money due to the fuel and food crises. Whilst it may be tougher to get mortgages at the moment it doesn’t mean that those who are already in possession of a mortgage have it easy.
The rise in living costs will likely begin to affect some people’s repayments on mortgages as well as other unforeseen occurrences such as unemployment. In this case independent mortgage brokers have suggested that some home owners take out extra insurance by getting mortgage protection so that they do not end up missing repayments.
For now the Bank of England has forecast less lending and advised people who are having trouble getting a mortgage to essentially shop around. In this current financial climate some lenders may outright refuse you a loan or mortgage or end up offering less than is desired
