Property Rescue Blog

There has been so much media speculation this year about a forthcoming UK property crash that you couldn’t be blamed for switching to a different channel every time a commentator comes on the box.

The Bank of England has, to date, failed to respond to pressure to cut rates and decided at its meeting on 4 October to keep interest rates unchanged at 5.75%.  For home owners, the rises that have taken place during 2007 have increased their mortgage repayments dramatically – a good reason, say some experts, to look at cutting interest rates before we reach economic meltdown and the market crashes. 

But is it just those with high mortgages that are feeling the pressure and will the market crash?  Obviously, the higher your loan the more impact the interest rate rises will have had.  But what tends to hit the media are stories about first time buyers on very stretched incomes or those who have taken out enormous loans, well out of the reach of most.  That leaves a vast gap in the middle consisting of the ‘average’ home-buyer, if there is such a thing.  These people have suffered in silence, absorbing the rate increases and making the necessary cut-backs.  If there were to be a crash – and the financial analysts are far from agreed as to whether that will happen, in any shape or form – anyone with a high mortgage could be left in a negative equity situation. 

Everyone has a breaking point in their budget, a fact that hasn’t escaped the notice of Property Rescue.  If you are facing a situation where you are continually building up debt secured against your home, you have arrears on your mortgage repayments, or are simply in an overstretched financial situation, give them a call to discuss the options.  Everything is done in complete confidence and there’s no obligation to proceed.