Property Rescue Blog

Repossession Orders rose by almost 30% last year. That’s a massive increase in people who have come under threat of losing their homes because they have been unable to meet their mortgage repayments.

As the average house price increases so too does the average home loan. New loans are being made at many multiples of salary, far in excess of what lenders were prepared to offer a few years ago. Added to the recent interest rate rises and the possibility of more rises on the horizon, it is hard to see how home-owners already on the brink of financial viability will be able to remain solvent.

Running up mortgage arrears is not something that happens through choice. Almost everyone in this situation wants to clear their debt and get rid of the dark cloud hanging over their heads. Property Rescue gives home owners the ability to do that by guaranteeing to buy their homes and – if they wish – offering them the opportunity to rent back the property as a tenant.

This enables people to clear their debts yet remain in their home. This means less disruption for their family in the short-term but offers the option for the tenant to buy back their home in the future when their finances might be more stable.

For more information on how the buy and rent-back scheme works, or to ask any questions about eviction and repossession, contact Property Rescue.

The Bank of England has just announced a quarter of one per cent rise in interest rates and the mortgage companies look set to follow suit. Bank rates now stand at 5.5%.

Despite having one of the highest rates of interest amongst the prosperous countries of western Europe, the UK is still beset by worries about controlling inflation. Some analysts are predicting that 2008 will see inflation take off and interest rates will rise even further in an attempt to quash consumer spending. This pessimism was reflected by the predictions in some quarters that the recent rise would be half, rather than a quarter, per cent. Fortunately for borrowers, that prediction proved inaccurate.

For savers higher interest means good news, but for those with mortgages the outlook is more gloomy. Recently mortgage lenders have been prepared to offer borrowers unusually high multiples of their salary and combined with the number of people who choose to lower their repayments by opting for an ‘interest only’ loan, the percentage of people who will be adversely affected by the recent rise is bound to go up.

If you are struggling to meet repayments and have mortgage arrears, contact Property Rescue to discuss the options open to you. Don’t leave it until you are under threat of repossession because by then the situation will be critical. Property Rescue guarantee to make an offer to buy your home, and carry out all consultations in complete confidence.

Last week’s rise in interest rates will soon start to impact on mortgage repayments, especially here in the South East and East Anglia where property prices are high.

Some analysts warn that repossession figures could double this year as people are pushed to the brink of financial crisis by increasing repayments. The threat of yet another rise in the Bank of England’s base rate is looming on the horizon, making the situation even more gloomy for anyone who has a mortgage.

So can anything be done to stop eviction taking place? If you are in arrears with your mortgage and the accumulated debt has become significant, you are at risk of having your home repossessed. Contact Property Rescue as soon as you realise the situation is becoming serious. Try not to leave it until repossession notices have been issued, but even if they have, Property Rescue will still be able to help.

They will make you a guaranteed offer – no matter where your property is or what its condition – and will give you the opportunity to rent back your home if you wish. This means that you will avoid being evicted, you’ll be able to stay where you are, let your children continue in their current school and, if your financial circumstances improve, you can opt to buy back your home at a later date.