Mortgages -
Customers advised to be selfish in 2008 - 25/01/2008
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Homeowners should be selfish to see them through any recession in 2008.
That was the message of David Kuo - the head of personal finance at Fool.co.uk.
Speaking in the wake of uncertainty in the global markets and the US Federal Reserve unexpectedly cut the US base rate by 0.75 per cent, Mr Kuo said people should seek to look after themselves.
"You need to make sure that your finances are in good shape so that when you do have to go to the bank and borrow money they can see you have more equity in your home and that you are better prepared for the credit crunch," he remarked.
In order for homeowners to prepare themselves for an uncertain 2008, Mr Kuo offered a number of pieces of advice.
He said that consumers should consider mortgage payment insurance and start to build a "nest egg".
Mr Kuo also recommended that, if the Bank of England's monetary policy committee cuts UK interest rates, people on tracker-rate mortgages continue to make the same payments. By doing this, they will effectively be paying off more of the capital.
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