Monday, November 14, 2011
Property a poor investment choice for the short to medium term
There are fears that the crisis in the eurozone could spark a second, more serious credit crisis, "like Lehman Brothers on steroids", as some commentators have said. If banks are concerned about who will be left holding debt that can't be repaid, they will quickly draw their horns in and stop lending to each other, as well as consumers and small businesses. This could mean mortgages cost more and become more restricted, said David Hollingworth of brokers London & Country â€“ particularly for those with relatively small deposits or little equity in their home. Mortgage borrowers have been some of the few winners from the current global instability, thanks to low interest rates. But if you are considering remortgaging soon, don't delay.