How will the Eurozone crisis affect the Market?

The Eurozone Crisis

There are some predictions that the current Eurozone financial crisis could wipe 10% off property prices in the UK, according to Taylor Wimpey. However, the real answer to how the crisis will affect you comes down to what problems the Eurozone will cause the UK.

The result of a continued Eurozone crisis is twofold for the UK. Firstly, should countries such as Greece and Italy ‘default' then this is likely to cause another credit crunch. The impact this will have is mainly on the provision of lending, as happened in 2007/8 when many mortgages were pulled and stringent criteria such as needing a 40% deposit to buy a home or have as equity to access reasonable mortgage deals. So a continuing crisis in the Eurozone is likely to make it tougher to secure mortgage lending, especially for the likes of first time buyers who have smaller deposits.

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