Credit Crunch Crash

Commentators reckon the Credit crunch is here to stay - to a certain degree we accept that central banks are putting in too little, too late and all this will so is soften the landing of the crash

Lloyds TSB & Credit contagion 'likely to spread'

Whilst Lloyds appear or claim relative safety from the meltdown in economies around the World it does not mean that the "contagion" will not spread

Swiss banks we have all to often thought of as meaning safety - secrecy even, and discretion - we at MyCbi had our own experience back in 1990 to dispel any sense of fair play that we had held, but we are minnows so why would the Swiss bank bother

Now things seem different, USB the giant swiss bank has revealed £7bn of sub-prime mortgage losses so far this year and its Chief Executive has reportedly gone cap in hand to Singapore seeking to bolster its capital

Given that it raises finance, it won't come cheap, we think!

Homeowners forced to sell warning - CML - DSS - DWP

Financial Times yesterday ran a header that some homeowners may be forced to sell thier home

Yes we can see that beacuase, as the article says, those who have had, or have recently gained a poor credit rating will find it near impossible, with remortgage funds virtually drying up, to remortgage at favourable terms

Mortgage payments could, in effect rise by 50% or even more after thier fixed rate comes to an end

Calls are being made to have Department Social Services of Department Work and Pensions provide some extra or interim help for those struggling so as to help protect not just those homeowners but the market also

Yes, something needs to be done but DSS assisted in the last 12 months is always a downer as far as a new remortgage application is concerned and such help could put those homeowners on to the 'adverse list' for ages to come, in the strictest interpretation it could be a rolling period of 6 years from the last DWP or DSS subsidy payment

Of course, whilst mortgage payments are 'out of reach' missed payments on not just mortgage but also cards and loans occurr and this too perpetuates the rolling 6 year poor credit issue

Since there will be an ever increasing number of Sale and Rent Back players and deals it is imperative that this is quickly regulated so as to prevent the companies of sharp paractice, recently one of the bigger players went in to receivership having not paid the mortgages of the homes they had bought under the schemes and, having pocketed the rents now leave those tenants, the former homeowner, high, dry and homeless having lost all of thier equity - regulate, now, hard and fast, quickly!