Property Rescue Blog

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.