Property Rescue Blog

Gordon Brown may have been on holiday but he and his Chancellor, Alistair Darling, are working hard in an attempt to give the housing market a boost, and in so doing, improve their own party’s ratings.

It appears that Mr Darling may decide to temporarily suspend stamp duty on homes that fall into the lower bracket, i.e. between £125,000 and £250,000.  As the average home sits neatly within this range the measure is likely to have a big impact on first time buyers, as well as some of those wanting to move up to their second home.

If this ‘stamp duty holiday’ is put into practice (and it’s a big ‘if’ as there are lots of questions about how the fall in revenue would impact the Treasury) it would seem to provide an excellent antidote to the UK’s stagnant housing market.  But the property crisis has been fuelled by many factors not least of which is the lack of mortgage lending.  Some commentators feel that talk of a stamp duty holiday is detrimental to the market in the short term because potential buyers are likely to delay whilst they wait to see what happens.  Politically, it could also prove to be a shot in the foot: those who have recently bought and handed over thousands of pounds in stamp duty taxation are likely to feel pretty miffed that they missed out on such benefits.

If stamp duty news provides a glimmer of hope to some, that must be balanced by yet more bad news from Northern Rock.  The lender announced greater losses than anticipated and said it repossessed 65% more homes over the past year as a result of its previous lending to the sub-prime market.  As the government shores up Northern Rock with a controversial £3.4bn, it is now unavoidably clear that the effects of the credit crunch – which is celebrating its first birthday – will be long lasting.  Even the government is admitting that the property market is unlikely to recover in the short term, leaving borrowers concerned about meeting mortgage repayments as fuel and living costs rise, and those who want to sell feeling that their hands are tied.  If you are facing the possibility of repossession or you need to sell up fast because of personal circumstances, contact Property Rescue to find out about their guaranteed sale service. 

Property Rescue will provide a written valuation for your property and, if you accept that valuation, the sale is guaranteed to go through.  Whether or not you will pay stamp duty is dependent on the government’s decision of course, but you will save money by not having to instruct estate agents and, because the transaction is classed as ‘private’, you won’t have to prepare a Home Information Pack.  In addition, Property Rescue pay the legal fees on your sale. 

Give Property Rescue a call to find out more.  Their advice is free and entirely without obligation.

Figures released this week show that new mortgage approvals fell in June to a new low.  Successful mortgage applications were down a staggering 23 per cent from May according to statistics released by the British Bankers’ Association (BBA), who say this is the lowest number of mortgages approved in any single month since their records began back in 1997.

You may have a feeling of déjà vu when you hear warnings from the BBA about the state of the housing market.  Their forecast echoes that of the Council of Mortgage Lenders in predicting that this year is likely to see the worst fall in property prices since the early 1990s.  Whilst some argue that this is purely a levelling off of an over-inflated housing sector, the impact it is likely to have on those who have just entered the market is likely to be severe.

Negative equity may become an issue if house prices continue their downward spiral.  This is particularly true for those who have recently taken mortgages of 100% or more against the cost of their home.  Lenders are adopting a much more cautious approach now, but we only have to look a few months back to find a very different attitude. 

Of the mortgages secured in June, only 19% were for buying homes; the remainder were re-mortgages on existing property.  The fact that new buyers are not entering the market will send ripples upwards and outwards to anyone who wants to sell, making the market even more stagnant than it already is. 

Falling prices, negative equity and low mortgage lending all add fuel to the argument that the housing crisis is likely to take some time to resolve.  The more optimistic commentators are talking about the end of 2009 before the situation improves, but others are thinking much further ahead.  For those who need to sell rather than want to sell, this equals bad news.  Property is simply not shifting off the estate agents books, causing some agents to even go out of business.

If you need to sell your house fast there is an avenue by which you can do so.  Property Rescue makes a guaranteed offer for your home and, if you accept that offer, the sale can be tied up within a matter of days or weeks.  The benefits to you are that you have a certain sale, you will not be subject to your buyer pulling out further down the line, you will be able to move on and, perhaps, benefit from falling house prices by becoming a cash buyer.

Property Rescue promises never to push you into action that you don’t want to take, nor to proceed until you have all the information you require.  For more details, contact one of their property experts and start the ball rolling towards that elusive sale.

To have your home repossessed is one of the most stressful things that can happen to a family, putting adults and children alike under enormous pressure.  The financial impact is often severe and long lasting, affecting individuals’ ability to obtain loans, credit and mortgages in the future, and sometimes leaving them with debts that need to be repaid without an asset against which to secure them.

The Council of Mortgage Lenders (CML) expects to see a dramatic rise in home repossessions this year but stresses that its members view repossession as a last resort.  The Financial Services Authority, which regulates all lenders, requires policies to be in place that offer alternatives to repossession wherever possible.  If you are facing the threat of repossession, ask your lender to see their arrears management policy and if you don’t understand it, request an explanation.  They have an obligation to treat you fairly so if you don’t think this has happened you should take advice on what to do next.  Start by talking to your lender, but other agencies such as the Citizens Advice Bureau and the National Debt Helpline will be willing to provide you with free advice.  

But it’s also up to you to help yourself.  The CML strongly recommends that you get in touch with your lender as soon as you start experiencing financial difficulties that mean you can’t pay your mortgage.  If you let your lender know what’s going on, they are more likely to be able to help you manage your loan.

Property Rescue offers ways of avoiding repossession for those who have no alternatives and are under threat from their lender of losing their home.  There are two schemes that are available:

• Selling Up
  Although no one wants to sell their home under these circumstances, it is  almost always preferable to the alternative of repossession.  Selling will not realise the full market value of your home, but it will provide a realistic price, a  guaranteed sale and leave your credit rating intact.
• Sell and Rent Back
  These schemes have come in for criticism in the media recently on two  counts: firstly that the value offered by ‘sell and rent back’ providers is too far  below market value, and secondly that the terms of the rental agreement are  not explained clearly to the sellers.  Property Rescue guarantees to make all  the necessary information available to you up front so that you have a chance  to ask questions, take independent advice if you wish, and come to your own  decision.  No pressure is put on you to proceed if you decide not to.  They  make no secret of the fact that the market value of your home will not be  achieved by selling in this way, but in a sliding market many people feel this is  a sacrifice worth making.  The sell and rent back scheme from Property  Rescue allows you to stay where you are and lifts the threat of repossession.

One thing all parties are agreed on is that it is never a good idea to avoid repossession threats.  They won’t go away and they need you to take action.  For information on either of the schemes outlined above or an informal chat with the team of experts, simply call Property Rescue.