Property Rescue Blog

We reported a couple of weeks ago on ‘A Buyer’s Market’, focusing on a fall in the number of properties sold and the downward trend in the price of housing stock.  Since then news for sellers has worsened, with this week several mortgage lenders withdrawing offers and all becoming more particular about where they allocate limited funds.

Only a few months back lenders were falling over themselves to offer special rates to get mortgage customers through their doors.  But now those very same doors have been slammed in the faces of would-be borrowers.  First Direct, owned by Britain’s largest bank, HSBC, has responded to what it terms ‘overwhelming demand’ by calling a halt to mortgage lending for new customers and cutting the number of mortgage products it has on offer.  It seems that the bank has been over-run with applicants after other lenders have increased their prices.

The 100% mortgage could be a thing of the past if speculation that lenders will require a minimum 10% deposit is correct.  With the average house price in the south east over £260,000 that works out to a considerable sum, but bear a thought for the buyer who wants an average home in Windsor or Maidenhead; they would need to fork out a deposit of around £43,000 and take on a substantial mortgage to finance the other 90%.  Although we are not yet at that stage, in the current economic climate a mandatory 10% deposit isn’t hard to envisage.

It’s inevitable that many first time buyers will be put off entering the market amidst such uncertainty.  Without them, those further up the housing ladder will find it more difficult to sell, so it looks as if the credit crunch and the subsequent mortgage shortage will further slow an already sluggish market.

People who need to sell quickly could find themselves backed into a corner.  Until recently, putting property on the open market was considered the one and only way of selling your home – perhaps with the exception of going to auction.  The service offered by Property Rescue provides a way out of the ‘can’t sell’ trap through a guarantee, which it gives on any residential property.  This guaranteed offer extends to farmhouses, flats, buildings in a poor state of repair or those in a less than desirable location.

The team at Property Rescue is experienced in property transactions and mortgage matters.  This means they can advise people who are having difficulty selling their homes.  Property Rescue will give a valuation for the property in question and, if the seller accepts that valuation, the deal will be tied up quickly, without fuss and with the minimum of complexities. 

In the current market selling can be at best difficult and at worst impossible.  Get in touch with Property Rescue and find out about their guaranteed offer for your home.  You don’t have to sit and wait for a buyer to walk through the door – help is literally a phone call away.

House sales are in a slump and prices are falling.  So say the latest reports on house price trends throughout the country.

The key reason appears to be the disparity between the number of buyers and the number of sellers.  The credit crunch has made lenders reluctant to say ‘yes’ to those with poor credit histories or those that want 100% or near 100% mortgages.  This is understandable because in a falling market 100% mortgage today could mean negative equity tomorrow.  But that leaves sellers in a poor position.  With more houses on the market than there are potential buyers to snap them up, the only way to ensure a quick sale seems to be to slash the asking price.

Even the traditional stronghold of London has seen a reduction in prices with a 0.3% drop in the six months up to February this year.  Other areas have been harder hit; Wales, for example, has seen a 3.5% fall.  Some say that the reduction in property value is long overdue and is nothing more than a reaction to the over-inflated prices that we’ve seen over the past few years.  Whether or not you believe this argument is somewhat academic; if you have a house that won’t sell you’re likely to be more keen on resolving the problem than on understanding the reasons behind it.

To reduce the asking price might seem the obvious answer, but in itself this raises further questions: how much should you reduce it by; will the reduction ensure a sale; will the sale go through; will the buyer simply push the price down further at a later stage when it’s difficult for you to back out?  If you don’t need to sell your home quickly then you might decide the best thing is to sit it out and wait for a buyer to come along, or drop out of the current market altogether and try marketing your home at a later date when, we all hope, property prices are more stable and the buying public more confident.

Not everyone, however, has that luxury.  In some cases the property sale is imperative if financial or family difficulties are to be avoided.  In situations like this, consider asking Property Rescue to value your home.  The best thing about their offer is that it is guaranteed.  From the time you accept it, you can have confidence that the sale will go through.  You won’t be let down at the last minute, nor will the price alter from the original valuation.  This is a guaranteed way to sell your home fast and although you probably won’t achieve the same value as you might on the open market, you will have a confirmed sale at a date that suits you and avoid paying costly extras such as estate agents’ fees.

You can find out more by calling Property Rescue in complete confidence.  One of their advisers will be pleased to explain the process to you.  The valuation is completely free and at no stage will you be put under any pressure to proceed.

It used to be the case that most people ‘stayed put’ when they retired.  They’d give up work, grow veggies on the allotment or concentrate on the garden, and live out the majority of their retirement years in the family home.  But attitudes are changing as we come to expect more from our retirement and our general health improves allowing us to travel more and do more.

It’s not unheard of for people in their 70s or beyond to embark on a major new project such as building their own house or going off to travel the world – and why not!  The growth in the market for travel, leisure and property within the ‘silver sector’ is surely something to be celebrated.  Our society is undergoing a sea change in attitude; no longer do we see retirement as a long period of rest, instead we look at it as a time when dreams can be fulfilled and – after the demands of a career and family – both couples and singles can indulge in well earned ‘me’ time.

Such big plans are not for the faint hearted as they often require a complete upheaval in terms of financial and/or living arrangements.  If money is needed to finance these plans – as is usually the case – decisions need to be taken about how that finance can be made available.  With final salary pensions only for the fortunate few, most people find themselves in a position where they need to make a choice about how they fund their retirement dreams.  For some, this will mean selling their existing property so that they can free up capital by downsizing or moving into rented accommodation.

In a slow property market achieving that sale can be elusive, putting the retirement plans on hold.  Some people find themselves caught in a chain where nothing seems to move, while others are let down at the last moment by a buyer pulling out further down the chain causing the sale to collapse.

Property Rescue’s guaranteed quick house sale spells an end to broken chains, disappointed sellers and failure to sell.  Property Rescue guarantees to make an offer for your property – that’s any type of property in any location and any state of decoration or repair.  The process is quick, simple and straightforward and will save money on the costs that would be incurred if the house was to be sold on the open market; for example, sellers don’t need to prepare a Home Information Pack and they won’t pay an estate agent for finding a buyer.

For more information on how to sell up quickly and realise your long-held dreams, give Property Rescue a call in complete confidence.  There is no obligation to proceed and no pressure will be put on you if you feel their offer isn’t what you want.

Britain’s spiralling debt crisis has led to a sharp increase in the amount of people taking out debt consolidation loans as a way of dealing with financial strife.

The lure of a single monthly payment and a lower interest rate has been too strong for many. On the surface, the benefits are obvious. Although the covering loan tends to be significantly higher than the amount needed for repayment, it usually has a fixed, lower interest rate. The pressures of keeping track of multiple creditors is also relieved by providing the debtor with a single debt source.

But if you dig a little deeper, the full extent of the dangers of debt consolidation become apparent. Many people are tempted into consolidating unsecured debt into secured debt, usually against their home. The loan is usually significantly higher than the debt, which means that failure to pay off the full amount puts the debtors home at risk. Far from dealing with the source of the debtors financial problems, debt consolidation loans only deal with the symptoms. In addition to a large repayment amount, many people are coerced into PPI (Payment Protection Interest), scaremongered into believing that this will aid them in the long term. In 2004 Lloyds TSB had their knuckle rapped by the Banking Code for allowing a man to accumulate £6,000 (a fifth of his final loan) in PPI
 
Before deciding upon a debt consolidation loan, make sure that you do your research into all of your available options. Banks will usually offer a payment plan to those in financial difficulties. This will freeze the debt but severely hamper the debtors credit rating. The debtor will also be prohibited from taking out any further credit form any source.

Sell and rent back is also an option. Although there is likely to be a noteworthy discount on the property’s true market value, there is the luxury of being able to stay in your own home whilst sorting out your finances. There will usually be a buy back option available in the agreement, which allows the client to purchase their house at the rate of the new mortgage. The real advantage of sell and rent back is that it negates the usual peripheral problems of raising capital via a house sale. As their is the option to stay on as a tenant, there will be no need to look for a new home, change schools for any children or even search for a new job.

The biggest advantage that sell and rent back affords, is the ability to stay in your home whilst consolidating debt. The peripheral benefits of this are numerous, as it prevents the need for a stressful move, changing schools for children or even a change of job. The long term benefits of preserving your credit history have previously been mentioned and the short term loss may be prudent when considering the loan term gains.

Sell and rent back companies usually offer a buy back option. The buy back is based on the new mortgage arranged by the company. This allows the client the option of once again becoming owner of their own home.

Unfortunately, the credit situation as it is has forced many people into a financial corner. Creditors have become more and more vociferous in their pursuit of monies owed, governed by the fear of the credit crunch. Repossession orders have increased greatly in the last couple of years, rising to over 120 per day in 2008. In reality, this is not desirable for the lenders as it prevents them from recouping their interest.

Until the market is willing to admit to a fall in house prices an adjust accordingly, the financial difficulties people are facing will not be going away anytime soon. Sell and rent back is not designed as business model designed to rob people of their homes. It evolved out of the pressures created by an irresponsible lending climate, looking to cash in on the massive growth in the property market.

Sell and rent back is not only for people who find themselves in financial difficulty. It is often used as a way of releasing equity from your home, insuring an expedient purchase after a divorce or consolidating debt. It can be open to abuse due to its current lack of regulation, but the reality is that it is in the best interest of the sell and rent back company to uphold it’s agreements. The sector is growing rapidly and will soon come under the jurisdiction of the OFT. Until then, if sell and rent back is an attractive option, ensure that the company you are dealing with is reputable, do your research and be sure you fully understand the intricacies of the business.

The small element of sell and rent back companies that do decide to evict tenants without notice are the same companies that tend to be reported on in the press. One of the advantages of a sell and rent back company is discretion. As a result, it is rare to find anyone who is willing to broadcast their situation and give a different account of their experiences. But the companies that do treat their clients badly are as a result of the de-regulated system and the sell and rent back sector will only profit from some form of regulation.

Make no bones about it, changing form a homeowner to a tenant is an incredibly difficult decision. Especially given the prevailing cultural preference toward owning ones home in the UK. Reports of dodgy companies evicting their clients and limited tenancy agreements do little to assuage peoples trepidation. What should be understood however, is that the limited tenancy agreement is as a result of the mortgage lenders and not the sell and rent back companies themselves. In reality, it would be more beneficial for the company to tie the client to a longer term lease and negate the need for new tenants. The company would also have the added incentive of tenants who are unlikely to let the house fall into disrepair.

Companies that do serve notice on their tenants after a period of months tend to be ‘fly by night’ and are just looking for a quick profit so quickly disappear. It is important to research the company that you are considering working with, to ensure that they are a dedicated sale and rent business. 

There is no getting around the fact that if you decide to use a sell and rent back company, you will be selling your property for BMV or below market value. The rate can fluctuate but the general rule of thumb is a minimum of 80% below market value. The initial loss is considerable but there are mitigating circumstance to consider. For example, if you end up in the position whereby a repossession order is completed on your house, it will be impossible to remove that black mark from your credit history. A poor credit history prohibits you from obtaining reasonable rates on any future mortgage…(cont)

The much publicised property slowdown and credit crunch has forced many homeowners into difficult situations. The cost of living has risen dramatically in the last couple of years and the credit crisis across the pond has only added to the mortgage problems that many people are facing.

As a result many homeowners are finding that their income is no longer significant enough to deal with the mounting debts that accompany their mortgage repayments. Unfortunately this often leads to the homeowner needing a quick sale in order to raise the necessary cash to cover their debt. In the present climate, a quick property sale has become more and more unlikely.

The market situation and new financial difficulties faced by the public due to the American credit crisis has resulted in a growth spurt of sell and rent back companies.  Their encroachment into the property market has not been welcomed by all, especially estate agents and debt consolidation companies. Homes sold under a rent back scheme do not involve estate agents, as the property is sold directly to the company specialising in cash purchases, which obviously bypasses an estate agent fee.

The cash purchase element of sell and rent back also infringes upon the territory of debt consolidation companies, as it would negate the need for a homeowner to take out a loan that is secured against their house.

There has been a lot of conjecture surrounding sell and rent back companies, especially in the press. As a new element of the market, there is still some doubt and suspicion regarding the motives of these companies.

The industry is not currently regulated. As a result, a small number of business are setting up with the intention of capitalising upon the difficulties of others by leading them to believe they have the rights of a tenant and then selling their homes from under them when a better offer comes along… (cont)

Insurance is one of those areas where it seems people are only too ready to stick their heads in the sand and adopt the ‘it’ll never happen to me’ attitude.  It’s not hard to see why this happens; for a start there are few of us who enjoy dwelling on the potential disaster that may or may not be around the corner, and in any case if money is tight insurance is often the first item of expenditure to be sacrificed.

One area of insurance that is particularly neglected is that of income protection, which provides cover should you not be able to meet your mortgage repayments due to ill health, disability or accident.  If you are a fit healthy 30-something, the chances that you will become seriously ill are probably remote but what people often fail to think about is that accidents can happen at any age.  It’s easy to think of ourselves as invincible but disaster can and does strike – thankfully rarely – so it makes sense to have a plan in place that will offer some sort of protection for you and your family.

When you are young your mortgage repayments will probably be among the most significant of your monthly outgoings.  If you find yourself unable to pay your mortgage, whatever the cause, you stand the risk of losing your home through repossession.  The number of repossessions is on the increase and mortgage lenders are unlikely to turn a blind eye in a situation where they can see little hope of getting their money back.

If you are already in this situation and you don’t have an insurance policy that will pay out, is there anything you can do?  With Property Rescue there is another option.  They will assess the value of your property and will make you an offer.  This means that you have a guaranteed buyer for your home that will allow you to pay off your debts.  “But where will I live?” I hear you ask!  Using the ‘Rent Back’ scheme, Property Rescue allows you to stay in your own home as a tenant rather than as the owner.  This means you don’t need to relocate, disrupt your family or move away from a neighbourhood that you enjoy.  Although you won’t own your home any longer, you won’t be threatened with eviction whilst you can afford to pay rent and if you think you are likely to be in a position where you can become a home owner again in the future, Property Rescue will give you the option of buying back your property at an agreed date and an agreed price.

Health and wealth are most definitely connected.  Poor health can strike at any time, usually through no fault of the person concerned, and yet it can bring a great deal of suffering to the individual and his or her family.  Don’t let illness or accident threaten your way of life more than it has to. 

Contact Property Rescue today to find out more about their Sell and Rent Back scheme.  Their experts are always pleased to have an informal discussion over the phone and will arrange to visit you and value your home at no obligation.