Sub prime, credit crunch, mortgages etc.

[jazzactivist]

Hi all, I don't want to ruin anyone's Easter, but is anyone other than me concerned about the current economic circumstances re: banks and mortgage lending? We will be finishing up those odd jobs this Easter week and then will be putting our house on the market, but now I am getting a bit concerned about who will be able to buy it. It would be nice if it went to a youngish couple or family, but it sounds like it has become even harder for first time buyers to buy their own home. Also, as we will initially be renting when we move to the Lake Disrict to get to know it better, will our money be safe in the bank? It might not be loads, but it is all we will have. Eek! Any advice, what would you do?

[eleanor2]

jazz dont know whats going on really with mortgages and banks.we safe in an independant building society in a tessa.i feel my money is safe.not much there tax free interest seems a good deal.

[Pippa]

I do have some concerns about Banks, I don't know if you are safer in one of the big 5 or if any fail the Bank of England will bail them out. Getting a mortgage is not so easy now for anyone buying your house, but you may be lucky, it only takes one person to love your house, they may be a cash buyer or someone downsizing. I just don 't know where is the safest place for our money, probably under the mattress.

[Healing Hands]

I must say I worry about my two daughter's more then myself, I know they both have big mortgages and plus my eldest daughter could be out of a job next month and she is looking very hard for another, they cannot afford to live off one salery, hence why they have not thought about children yet.

[sunflower]

It's difficult is'nt it? I suppose the answer would be for a quick sell on your house, and for you to find a property that you like and buy it quickly.

[Oola]

I think prices will be ok in the perpetually touristy/popular areas. It's probably elsewhere that'll get hit *if* anything happens. I can't see anything bad happening to the big banks, but you should keep an eye on the American banks because I think they have a big effect on what happens with mortgages. I'm sure at the moment you should be ok, maybe getting it on the market sooner rather than later would be a good idea though.

If you're really concerned about your savings you could always split them - some in the bank and some in a high interest savings account like smile or cahoot (6%). Rich uses cahoot and although they're only online they seem to have caused him no problems at all.

[lily]

I think I'm correct in saying that only the first 35K of any investment is guaranteed, so I would spread my money accordingly. Remembering to check carefully as some names are in fact the same company although not obviously so. (e'g. halifax and birmingham Midshires)

[Oola]

There's also a good website called thisismoney.co.uk (http://www.thisismoney.co.uk)

It's got some really good advice on all things financial, is very up to date and has great consumer reviews. Definitely worth a look.

[Oola]

jazzactivist, I read an article in the Sunday Times at the weekend (Rich's paper, not mine!) that was covering househunts. It said that basically in the south east/central (e.g. cambridgeshire, oxfordshire, hertfordshire etc) the top end of the market is holding fast, whilst the other areas in the country may experience a drop in price.