Credit crunch may affect many more, say National Homebuyers

Homeowners and other borrowers have been warned that they face financial difficulties as a result of the global credit crunch.

[UKPRwire, Tue Oct 30 2007] Website Fool, says that the traditional belief that first-time buyers, buy-to-let investors and those with a poor credit history are the most likely to be affected by the crunch is no longer appropriate.

The firm says that anyone who does not fit within certain thresholds is vulnerable, spelling bad news if you are looking for someone to buy your property.

Fool points to the Bank of England's Financial Stability Report which defined certain danger thresholds.

It said that people whose debt payments are more than 55 per cent of their income and net worth less than 33 per cent of their income are at risk of getting into real financial difficulty.

"The two thresholds provide a handy guide for consumers to see if they are sitting ducks," said David Kuo from Fool.

"And by ensuring that we stay comfortably within them, we should be better placed to face unexpected shocks," he added.

Julian King of National Homebuyers advises that people in financial difficulty should consider a quick sale of their property in order to avoid further losses. "As the property market continues its downward turn, people already facing or even predicting the potential of repossession should act now.

"Quick property sale options are available to the homeowner which will solve their affordability concerns. Sell and Rent Back options are available so that the homeowner can release equity in their home while remaining living there as a tenant".

Mr King is a director of National Homebuyers, the Sussex-based company guarantees a quick purchase for vendors who need a fast property sale.

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