Property Rescue Blog

According to the Insolvency Service, more than 106,000 people declared themselves bankrupt or entered into a Individual Voluntary Arrangement (IVA) during 2007.  Although that was a very slight decrease from 2006 figures, the outlook is poor according to many in the finance and lending world.

The Financial Services Authority estimates that during 2008 around one million people could find themselves in a position where they cannot make repayments on their mortgage.  The pessimism is partly due to fixed rate mortgage deals, a lot of which will end during 2008, plus the increasing strain on household budgets.
 
After a period during which credit was widely available people everywhere are finding credit harder to obtain and are, therefore, being forced to tighten their financial belts.  Increases in household bills, especially heating, are hitting hard, as are steep rises in the cost of petrol – two items of expenditure which most of us consider to be essentials.

If financial problems are getting out of hand it can be useful to seek help from a voluntary or publicly funded organisation; for example the Citizens Advice Bureau provides advice on budgeting and paying off debt.  Keeping the lines of communication open between homeowner and lender is also important, as ignoring mortgage arrears most definitely won’t make them go away.

Any defaults on loan or mortgage repayments will be recorded by companies like Equifax, which compiles credit data.  If you can negotiate a longer term over which to repay the loan, or agree to pay interest only for a while, you might help avoid tarnishing your credit rating.  But this will need to be done before you incur any arrears if it is to be effective.

If you have had your home repossessed or declared yourself bankrupt your credit history will reflect this and your ability to get future loans will be affected.  Property Rescue has dealt with many people who are at the very point of repossession and yet they have still been able to stop repossession going ahead, saving their home and rescuing their credit ratings.  Property Rescue has access to funds that allow them to make almost instant decisions and buy in the shortest conceivable timescales.

Property Rescue’s valuation is fully inclusive of legal fees on the sale of your home  There are no hidden extras, so the price quoted is the price you will get at the end of the day.  They will arrange for your outstanding loan(s) to be repaid and will put any remaining money into your nominated bank account, leaving you with a choice of moving into rented accommodation until you get back on your feet or downsizing to a less expensive home.

Property Rescue do not pressure people into selling and promise to explain the process to you clearly.  Give them a call for more information and a chat in complete confidence.

The latest news on home repossessions makes for gloomy reading.  According to The Council of Mortgage Lenders repossession is at its highest since 1999; 27,100 homes were repossessed during 2007 against 22,400 in 2006.  The organisation warns of further rises as we go through 2008 and householders see an impact from rising energy prices and increases in bank lending rates. 

The repossessions figures have led to some political debate about whether lenders are being strict enough in the criteria they apply when giving out loans.  Sparked off by the US sub-prime mortgage crisis, the banks and building societies in the UK will perhaps be a little more cautious when they look at the risks involved in making funds available to new borrowers, especially those who already have other debts or outgoings.   Commentators are warning that borrowers with tarnished credit histories will find it more and more difficult to raise finance, with lenders either flatly refusing them a loan or else heaping on penalty rates to such an extend that the loan becomes unaffordable.

The Citizens Advice Bureau is one of the agencies who often see people at a time of crisis.  They offer free advice to those who are facing any sort of consumer problem or mortgage issue.  The CAB believes that mortgage lenders aren’t always doing everything within their power to help people who are facing repayment difficulties.  They point out that court action should be a last resort rather than a first option and urge lenders to negotiate with their borrowers to find a way through the problem. 

For those facing the threat of repossession it may seem like all the options have disappeared and the inevitable outcome will be the loss of their home.  With Property Rescue this need not be the case.  They can step in at the last minute to stop repossession.  Property Rescue guarantees to make an offer for residential property anywhere in the country, regardless of its condition or location.  Their access to a network of funding allows them to act quickly to make an offer for the property under threat.  The home owner, if they accept the offer from Property Rescue, can either walk away with the cash that remains after their mortgage and debts have been paid, or they can remain in their home as a tenant after the sale has gone through.

Call Property Rescue if you are under any threat of repossession.  Their service just could be the option that allows you to stay in your home and re-build your financial future.

According to the most recent BBC report, over four fifths of mortgage lenders believe that there will be 15% rise in home repossessions in 2008. The CML recently reported that in 2007, over 30,000 homes were repossessed compared to 22,000 in 2006.

Repossession is becoming a massive problem in the UK. Defaulted mortgages are contributing to the growing credit crisis that has proliferated to British shores from across the pond. Many people are finding themselves coming to the end of cheap fixed rate loans and the reality of paying standard variable rates is leaving many with a dire financial outlook. The Bank of England is attempting to prop up the housing market with interest rate cuts, but at best this will keep the market static.

The biggest issue facing people with threat of repossession is the devastating effect that it has on their financial outlook. A completed repossession order is severely detrimental to a persons credit rating. The knock on effect of this is that it prohibits affected homeowners from achieving anything close to reasonable interest rates from lenders for future mortgages. As a result, sub-prime mortgages become prospective homeowners only option. The pitfalls of sub prime mortgages have been well documented, as shown with the eventual run on Northern Rock after the markets lost all trust in them. Interest rates of over 11% are widespread in this sector and these mortgages are not to be advised.

Sell and rent back schemes provide an option to stop repossession. Although homes are bought at a discount, the long term benefits of preserving credit ratings could prove financially astute in the subsequent years. Once the debtors are assuaged and your home is secured, you may find yourself in a more sustainable financial position. A buy back option written into the new tenancy agreement will then allow you to re-purchase your house at the rate of the new mortgage.

Any financial decisions made to deal with debt should always take into account future situations. Seeking a quick fix, for example with a debt consolidation loan, will often leave you in a worse financial situation after all the repayments are made. Seek advice from your local Citizens Advice Bureau as to the best course of action before making any major decision on how to repair your finances.

If 2007 was a less than perfect year financially, you might have welcomed in the New Year with open arms in the hope that your fortunes will change as 2008 progresses.  For those lucky enough to have had promotion at work or have moved to a higher salaried job there is every opportunity to become more financially stable.  The rest of us, however, will have to make do on the same, or a very similar, income and brace ourselves for the economic downturn that many forecasters are predicting.

One of the ways in which we have come to perceive wealth in this country is through the value of our home.  We ‘feel’ wealthy when we know that our home is worth a lot of money, even if we can’t realise the capital tied up in our property or are still paying off a large mortgage.  The question is whether a downturn in the housing market will alter that perception, affecting not only our attitudes but also our buying behaviour.  A slow down in credit card spending may be good for personal wealth management but would doubtless hit high street retailers where it hurts.

So how will property price stability or decline affect us personally?  Commentators expect the cooling down of the housing market to continue throughout the year; some feel that property prices will fall dramatically but the overall consensus seems to be a levelling off rather than a huge drop in values.  The greatest effect will be felt by those who have bought or re-mortgaged recently at the peak of the market, or who have a high level of consumer debt which they’re unable to repay.

The Council of Mortgage Lenders predict that the number of homes subject to repossessions will rise to 45,000 this year.  That’s against a backdrop of 17,000 in 2006 and 30,000 in 2007 (estimated on currently available figures).  The ‘feeling’ of wealth counts for nothing at all if you can’t sell your home when you are in a financial crisis – no matter how much it’s worth.  Whilst the current housing market slowdown is unlikely to have a dramatic effect on the majority of home owners, it will be particularly bad news for those who need to sell fast.  Buyers are rare commodities who are eagerly fought over by sellers; inflated property prices are no longer achievable and sale times are increased.  When facing the threat of repossession speed is of the essence if you are to avoid losing your home.  Property Rescue can help people in this situation even if it is the eleventh hour; they guarantee to make an offer on any property, regardless of condition or location, and will liaise with lenders to stop repossession in its tracks. 

The important thing is not to delay.  Call Property Rescue to see how their guaranteed offer for your home could stop the threat of repossession and help you look forward to a more financially stable 2008.

Did Christmas leave you with the type of hangover that can’t be cured by a couple of aspirins and a cooked breakfast?  If so, you’re not alone. 

The Financial Services Authority carried out a pre-Christmas survey that showed people were more likely to resolve to go on a diet or book a holiday in the New Year than try to deal with the bills they’ve run up over the festive period.  Apparently as many as one in ten shoppers were still paying back last year’s Christmas bills whilst running up further debt on their credit cards to finance this year’s purchases.

The post Christmas period is the busiest time for debt counselling organisations, whilst websites that deal with debt problems have a significant increase in visitor rates during January.  The Association of Business Recovery Professionals is seeing a record number of people getting into serious debt problems, with some of them having no option but to go down the route of insolvency or bankruptcy, running the risk of losing their homes and putting enormous strain on their relationships.

All these organisations stress the importance of having a debt repayment plan to break the cycle of debt, something that Property Rescue would endorse.  Even in cases where levels of debt are high, having a proper plan in place, which is agreed by both you and your lenders, is bound to help avoid County Court Judgements being served against you and will lessen the risk of losing your home.

Home repossession is a huge trauma to any family.  The disruption to normal life caused by children having to change schools, adults moving away from neighbours and friends, losing the support network offered by nearby family, and downsizing to a smaller property or inferior neighbourhood all take their toll.  That is all in addition to the financial problems, which are often far from over even once the house has been repossessed by the lender.  Credit ratings will inevitably suffer and new credit, including mortgages, will be hard to come by.

Even when debt problems seem overwhelming, it does not necessarily mean that you need to forgo the home you love in order to pay back what you owe.  Property Rescue’s sell and rent back plan provides one option of dealing with the situation, allowing you to stay in your home as a tenant after the sale has been completed and your debts have been paid.  Property Rescue always carry out discussions in complete confidence and promise to make a ‘no obligation’ offer on your property.

Don’t ignore debt problems because they won’t go away.  If you have levels of debt that are mounting and your home is under threat, call Property Rescue without delay.

Yesterday the Bank of England chose to leave interest rates unchanged for the fourth consecutive month.  The decision came as no surprise, despite the call from leading economists for a reduction in rates to ease the property blues currently gripping the UK’s housing market.  It seems that inflation on the High Street is uppermost in the minds of the Bank of England’s decision makers and that those hard-pressed by increased mortgage payments are – at least for the time being – of secondary concern.

Is there any glimmer of light for those whose mortgage payments are spiralling out of control?  There is speculation that the Bank will cut interest rates in the near future, but this doubtless depends on how inflation reacts to the most recent rate hold.  But things look more bleak on house sales, with lending giant, Halifax, reporting a fall in house prices of 0.5 per cent during October, hot on the heels of a 0.6 fall in September.  Its figures also show that 11 per cent fewer mortgages were taken out during the third quarter of the year, compared to the same period in 2006. 

For people who need to sell their home because of mortgage arrears or the threat of repossession, this is not good news.  In a slowing market selling quickly is unlikely at best.  Property Rescue give people an option to sell their home almost immediately, sometimes within as little as 48 hours.  This is an extraordinary turnaround when judged against the average of 8 months to sell a home via traditional routes.  Speed can really be of the essence in some situations, especially where the build up of arrears on the mortgage – sometimes combined with other consumer loans – mean that there is a possibility of becoming bankrupt and invoking all that that status implies. 

Selling a home to Property Rescue does not necessarily mean moving out.  Of course, for some people that is exactly what they want to do – clear their debts, get rid of mortgage arrears, buy another property in a cheaper area or downsize, and make a new start.  But for others who are committed to their location because of job, school, friends, etc., the option of selling to Property Rescue and remaining in the home as a tenant can be very attractive.  This arrangement is fully explained to clients before they sign any paperwork, and full tenancy agreements are provided that give all the rights tenants are entitled to when in rented accommodation.

Give Property Rescue a call to find out more.  All calls are in total confidence and without any obligation to proceed.

Ask any person in the street what repossession means and they will usually reply that it’s the loss of someone’s home through non-payment of a mortgage. Of course, they’re absolutely right, but what people often fail to understand is that if your property is repossessed you may never be able to get a mortgage again.

But repossession happens quickly and for many people the options of funding have simply run out. There seems no place to turn and no alternative but to hand your home back to the mortgage company, turn the key in the lock for the very last time and look forward to a life-time of paying rent.

What many people in this position fail to realise is that there is another option. Companies such as Property Rescue will value your home, buy it from you and stop repossession in its tracks. All this takes place within a matter of days – unlike normal house sales that take months to complete. You can move out of your home into a lower priced property, rent a property for a period of time until your finances have recovered, or stay exactly where you are and rent your home back from Property Rescue.