Property Rescue Blog

The UK is a nation that is getting older by the day!  If that sounds like an obvious statement, take a moment to think about the impact that will have: more people taking retirement benefits, less people working to support the economy, and the average life-span increasing through better healthcare.

You don’t have to be an economist to work out that the balance will sooner or later tip with the result that pensions and other state benefits in retirement are likely to decrease.

Personal pensions are a matter of concern to the government who tell us we are not saving enough, nor are we starting to save early enough.  There is even talk of future generations starting a pension fund for their children before they reach school age!  The immediate problem, however, is that pensions can seldom be topped up sufficiently to make up for a lack of savings in our earlier working lives.  So if we are middle aged before we get round to thinking about putting money away for our retirement, we are likely to end up with a pension pot that is woefully inadequate for our needs.

The fact that people generally enjoy longer lives and better health than in previous generations means expectations are higher, with those in their seventies, eighties or beyond finding that they are fit and well enough to travel the world or take part in sports and leisure activities – all of which cost money. 

If your pension pot is sadly lacking but you are nearing retirement, your options may seem limited.  Once choice might be to release the equity in your home through Property Rescue's sell and rent back scheme.  There are a number of equity release schemes on the market directed at older people, not all of which are recommended by financial advisers, so no matter what course of action you are considering you should always take independent financial advice before you make your decision.  It could affect your future as well as the inheritance you may have to leave for your beneficiaries after your death.

Property Rescue make the equity release process simple and straightforward.  They explain everything to you in clear detail and take care of the paperwork and legal necessities.  They will not force your hand, and if at any time you decide that you don’t want to proceed, you are free to walk away without any obligation.  If you are considering equity release as a means of providing the cash you need in retirement, do some research into what’s available, consult an independent professional adviser, and give Property Rescue a call to find out more.

This week the financial commentators have reported on several factors that are hitting the housing market via a lowering of buyer confidence.

• Property prices are slowing almost everywhere and in some areas of the country they are falling.  One of the few locations to buck the trend is the capital where estate agents report reasonable levels of sales against the backdrop of a buyers’ market where the price paid is not always the price at which the property was marketed.  The Royal Institute of Chartered Surveyors has reported a 22.2% increase in the number of its members that have seen a fall in the price of properties they have on their books.
• House prices might be going down but the rate of inflation isn’t, despite the Bank of England’s hold on interest rates last week.  The government failed to meet its target of 1.9% inflation during October, with figures coming in at 2.1%.  Inflationary pressure might just persuade the Bank of England to hold interest rates yet again when it meets later this month, rather than make the cut that the housing market has been hoping for.
• Energy prices are up, as anyone who has recently been to a petrol station will know!  Not so long ago the media – and the rest of us who drive cars or heat our homes with oil – were horrified to think of a barrel of crude pushing through the $50 barrier, but today it looks as if prices will soon reach a staggering $100 a barrel.
• Northern Rock has rocked the market, showing that even the largest financial institutions are at the mercy of global economics.  The sub-prime mortgage market in the US is still in some difficulty, leading to speculation that there may be more problems to come.

Trying to sell a home in this climate isn’t easy.  Attention must be paid to how your property is marketed and your home must be in tip top condition if it is going to attract the attention of buyers and ultimately achieve that longed for sale.  But Property Rescue guarantees to buy your house, regardless of its structural or decorative condition.  They complete sales in super-fast time leaving the seller free to benefit from the ever-growing number of properties on the market.  Although you won’t get the maximum sale price that might be achieved on the open market in ‘good times’, the price Property Rescue quote is what you’ll receive, without additional expenses or a deduction of fees.

The guarantee of a sale in the current property market must be worth a second look.  Give Property Rescue a call to find out more.  They will talk to you in total confidence and there will be no obligation to proceed.

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.

This week figures have been announced that show the first drop in house prices for two years.  Is this the start of a real slow down and is the housing market in crisis?

Northern Rock’s recent difficulties have shaken the market considerably, showing what could happen if the sub-prime mortgage collapse in the US continues to have impact on our own lenders.  It’s not hard to find doom-mongers amongst the market commentators, predicting that we are about to see the biggest slow down since the ‘90s or even that we’re in for a full blown property price crash.

The International Monetary Fund considers UK property to be over-valued by 40%, which is enough to send shivers run down the spine of UK home owners.  Capital Economics, led by an ex chief economist from HSBC, forecasts a 3% fall per year during 2008 and 2009 due to the effects of the global economy and higher interest rates in this country.

Added to this is the effect that Home Information Packs (HIPS) are reportedly having on the market, with some potential sellers being put off from marketing their home until the full effect of HIPS becomes known.

This means that if you are trying to sell your house you’re likely to see a slow down in viewings and may have to drop from your asking price to gain that elusive sale.  For some people this is likely to cause real difficulties – losing the ‘dream home’ they really want, not being able to move to another part of the country thereby necessitating separate living arrangements for a period of time, or even taking out a bridging loan to cover the cost of two properties until such time as a sale can be made.

Property Rescue guarantee to buy your home no matter what the market is doing or what the commentators are forecasting.  Furthermore, the sale will be carried out in super-fast time, you won’t have to pay legal fees or estate agency fees on the property you sell, you won’t have to worry about HIPS as Property Rescue will take care of that for you, and you’ll be free to move on to your next home.

Give Property Rescue a call to find out more.  All calls are in total confidence and there will be no obligation on you to proceed if you then decide to sell your home via traditional routes.