Lloyds TSB increasing mortgage rates

[ONEIN60]

Anyone else had a letter from Lloyds TSB increasing the mortgage rate 0.51%. Suppose it was inevitable but I thought 8% was high enough already!

[Marooned]

Yes, received the same.

Lloyds have also ceased any mortgages on apartments and only mortgages on finished villas in 'approved areas' with 50% deposits required.

Local banks may also follow suit with news of some already refusing any personal loans.

There are still contradictory stories is the press about 'weathering the storm' and being 'immune from the global turmoil' etc etc... whilst others predict increasing unemployment and businesses/investment turning away from the region.

But with liquidity drying up the truth is that the situation is changing rapidly and not for the better.

[schismatic]

Let' be frank. The situation in the UAE is a disaster. Stockmarkets have fallen the maximum 10% allowed continuously day after day for the past 5 trading days. Now down 50% on already historic lows.

Property has fared little better. A complete crash has occured with premier properties falling 50% in two weeks. Banks are not lending and so there are no buyers. Estate agencies are folding on a daily basis. Speculators are offloading everything at a loss to avoid wipeout.

Unless banks lend, you can count on at least a 75% fall in the property market in Dubai. As the property market crashes, jobs will be lost and the Dubai Dream will implode. Hell - we've just seen the US and Europe show us how. Dubai will be worse because it will be badly handled and the safety mechanisms have never been in place.

Dubai is over leveraged and now broke. Half those fantasy projects will remain just that - fantasy.

Go to work - Hold on to your job - That is the only asset you have here.