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Property Rescue Blog

First Quarter Repossession Figures

Recent repossession statistics show that there is no slow down in the housing crisis.

The current figures must be seen against the backdrop of 2007, which had been forecast to be a bad year by the Council of Mortgage Lenders even before the credit crunch hit.  But despite these predictions, 2007 ended with the actual number of repossessions standing at 27,100, well below the 30,000 the organisation had expected.  This represents less than 1 in 400 mortgages, but remains an increase on the previous year of around 21% and means that repossessions have been steadily rising over the last 8 years.

The Council of Mortgage Lenders has set the expected number of repossessions for 2008 at 45,000, blaming factors such as the issues currently affecting the global economy and the restrictions on lending.  If they are correct, 1 in 300 homes will be taken back by lenders this year.  With such a marked increase in their forecast, are the experts at the CML on track?

According to the statistics published by the Ministry of Justice on 9 May, the first quarter of 2008 shows a 9% rise in possession orders over the last quarter of 2007.  If this trend continues then the CML’s forecast is very near the mark.  The 9 May figures represent a 17% growth in the number of homes repossessed when compared to the same three months in 2007.

It should be remembered, however, that there are 11.8 million mortgages in the UK and the current figures are not even close to those experienced during the property crash of the early 1990s.  No-one would argue with the fact that the market is seeing a slow down, but the jury is still out as to whether it qualifies as a ‘crash’. 

The human factor in all this is that every one of these statistics represents heartache and distress for those who lose their home and have to accept the financial consequences.  Many people think that repossession is inevitable, but that’s far from the truth.  Even if mortgage payments cannot be kept up and threats are being received from lenders there are still options.  The golden rule is to communicate with your lender if you are having difficulty in meeting your repayments – and talk to them before the situation gets out of hand.  If your home is under threat you can stop repossession by selling to Property Rescue, who will guarantee to buy it at a valuation they will prepare for you.  This service has provided a lifeline to many families who have been just days away from repossession taking place, demonstrating that it is never too late to take action.

If mortgage arrears are getting you down and your home is under threat, don’t delay.  Contact Property Rescue in total confidence.  Their experts will not pressure you into making a decision that you’re not happy with, but they will be pleased to explain everything to you in a straightforward manner, without any obligation.

16 May 2008 in Debt, Stop Repossession, Repossession | Comments (0) -

House prices continue to slide

House prices have now been falling steadily for more than six months, according to statistics published this week.  In April, prices were more than one per cent down, bringing the average UK house price to approximately £178,500. 

There is a mixed reaction amongst home owners to the decline in property prices.  Some are worried that money is being wiped off their assets, especially if they own a buy-to-let property as well as their main residence as this sector has been particularly hard hit in recent months.  But not everyone is as down-hearted.  Many feel that property prices in the UK have been over-inflated for too long and see the current dip as no more than an overdue adjustment that will serve to create a sustainable market place. 

Those who are about to buy their first home find themselves benefiting on the one hand and losing out on the other.  The price drop will mean that there are bargains to be had, but the mortgage shortage is causing heartache on all sides.  Estate agents are reporting that first time buyers are nervous about entering a market in potential decline and are having difficulty raising the mortgage they need at a price they can afford.

At the end of the day, it’s the poor seller that seems to come off worse.  Reports of people who have had their home on the market for more than two years are not uncommon.  Despite these home owners spending time and money on redecoration, landscaping the garden and generally making their property more attractive, a buyer – at least a buyer with a secured mortgage – remains elusive.

Private sales offer a real alternative to people who are facing such a crisis.  When a sale is important (i.e. family or job reasons are behind the move) then action needs to be taken.  Selling privately means that the offer price is the price that is paid – no renegotiation of the sale price further down the line, no estate agents fees, no collapse of the chain, and no mortgage problems with your buyer.  Selling in this way will mean that your home is valued below the market rate, but with house prices continuing to fall, sellers having to lower asking prices, and sales taking months or years to complete, the benefits are becoming more and more attractive.

For information about how to sell your home privately, talk to Property Rescue.  They will give you all the details you need to make an informed decision, without pressure, and will deal with you in complete confidence.  Call for a no obligation chat to see how they can end the misery of not being able to sell your home.

1 May 2008 in House Prices, Mortgages, Housing Crash | Comments (0) -

10p Tax Rate cut looks set to add to debt problems

Gordon Brown and Allistair Darling are facing opposition from their own back benchers over the controversial removal of the 10p tax rate band.  By no means will everyone lose out from this cut, but some could have debt problems exacerbated by unexpected reductions in their pay-packets.

Of particular concern are younger people who are already suffering because their fixed rate term has come to an end and their mortgage repayments have shot up, or they have just got on to the housing ladder and their income is already stretched.  The 10p tax rate abolition will affect people under 25 who don’t quality for working tax credit and don’t have children, plus those working part time without children. 

The cut coincides with steep rises in fuel and petrol prices, plus higher supermarket bills.  World economies are concerned about the cost of food and urging us to be less wasteful – a lesson we should all learn – but cutting back on a few groceries is almost certainly not the cure for those who face real debt problems.  Whilst the 10p rate cut is unlikely to push anyone into serious debt, it could be the straw that breaks the camel’s back.

Credit card debt is endemic in today’s culture but that may have to change as the banks and other lenders start tightening the purse strings.  Last summer (2007) the UK’s consumer debt rose higher than our level of Gross Domestic Product (GDP), a critical indicator of the state of the British economy.  This was fuelled by the ease with which almost anyone could borrow money, regardless, it seemed, of their credit rating or ability to pay. 


When debt gets out of hand it is a major cause of stress, family problems and even breakdown.  If you are facing debt problems the best course of action is to talk to your lenders and take advice from voluntary or charitable organisations that will be able to help you budget and, in some cases, liaise with lenders or creditors on your behalf.  These people are non-judgmental and have resources at their fingertips to help you.

If your home is under threat of repossession or your levels of debt are serious enough for you to consider bankruptcy, then you need to take action.  You might want to sell your home so that you can make a fresh start or raise cash to pay off your loans; relocating to a cheaper area may be an option, or moving into rented property might give you the chance to get yourself back on a solid financial footing. 

In the current housing market, selling is not easy.  Talk to Property Rescue about their guaranteed offer for your home, plus their sell and rent back scheme.  There are no hidden costs in the offer they make, you don’t have to pay for a valuation on your property, and everything is done in complete confidence.  There is no obligation to proceed and you won’t be subjected to ‘hard sell’ tactics.  Property Rescue could be the answer to your debt problems.  Give them a call today and move on with your life.

24 April 2008 in Debt, Repossession, Interest Rates, Mortgages | Comments (0) -