The ongoing "credit crunch"

[ianmillington]

I think it will make many of the "old-style" equity release clauses unworkable Debbie, simply because lenders might no longer lend even compliant debtors the amounts to which they have had to commit themselves.

Given that the circumstances are beyond the debtors control, my guess is that most of the creditors will look favourably at a properly thought out variation.

Ian

[Soulgrowth]

A variation that would increase the length of the IVA?

Debbie

[ianmillington]

Possibly, as that would emulate the new protocol or depending upon the circumstances it might provide for a lower dividend. It's too soon to say yet, I'm afraid.

Ian

[s.b.w]

Hi All

I was on BBC2's Working Lunch today discussing this very thing!

I asked the expert from John charcoal about my chances of a mortgage, well, unless I save a 25% deposit I'm not going to get one anytime sson... and to improve my credit rating I was advised to apply for.... wait for it.... credit cards!

He advised the ones with high interest rates which are aimed at those with low credit ratings. Pay an advanced sum on them every month to use only what I've paid on there and not actually go into debt.

Scared the daylights out of me to tell you the truth!

Sharon

[Soulgrowth]

What incredible advice!! It sounds a little like the financial institutions are starting to get a bit panicky as to where their sources of interest/income will be coming from!

Debbie

[s.b.w]

Tell me about it!

I'm the fat one on today's working lunch taking advice from Ray Bolger of John Charcol.

I was amazed when he said "take out a credit card".

Scary.... very scary!

[Adam Davies]

Hi
Have you a link for the programme ?

[s.b.w]

It's at:

http://www.bbc.co.uk/iplayer/page/item/ ... d=b009ph3k

[s.b.w]

It's on the Working Lunch website.

Sharon