Undoubtedly you’ve all heard it, we’re as good as in a second recession already. The USA announced that they could face more financial troubles within the housing market. Now banks are reducing mortgage lending. The figures from the bank of England are now the 4th lowest since the banks records started.
So what does that mean?
Well it means potential home owners will be turned down, reducing anywhere from 30K-200K in money changing hands. So the owner of the home cant buy his new home for buy to let, so that’s another 200K down the drain, and his tenants cant move in. So he’s several hundred a month out of pocket.
In preparations for their purchase the wanna be home owners will start saving instead. Recessions start by people not spending. They end when people start spending. So banks as normal are taking the wrong approach they need to start lending instead of saving for bad times cause that’s what causes the bad times.
So lets cut them off before they can do damage: Go on a Spending Spree!
References
The Telegraph
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