Property Rescue Blog

Recent repossession statistics show that there is no slow down in the housing crisis.

The current figures must be seen against the backdrop of 2007, which had been forecast to be a bad year by the Council of Mortgage Lenders even before the credit crunch hit.  But despite these predictions, 2007 ended with the actual number of repossessions standing at 27,100, well below the 30,000 the organisation had expected.  This represents less than 1 in 400 mortgages, but remains an increase on the previous year of around 21% and means that repossessions have been steadily rising over the last 8 years.

The Council of Mortgage Lenders has set the expected number of repossessions for 2008 at 45,000, blaming factors such as the issues currently affecting the global economy and the restrictions on lending.  If they are correct, 1 in 300 homes will be taken back by lenders this year.  With such a marked increase in their forecast, are the experts at the CML on track?

According to the statistics published by the Ministry of Justice on 9 May, the first quarter of 2008 shows a 9% rise in possession orders over the last quarter of 2007.  If this trend continues then the CML's forecast is very near the mark.  The 9 May figures represent a 17% growth in the number of homes repossessed when compared to the same three months in 2007.

It should be remembered, however, that there are 11.8 million mortgages in the UK and the current figures are not even close to those experienced during the property crash of the early 1990s.  No-one would argue with the fact that the market is seeing a slow down, but the jury is still out as to whether it qualifies as a ‘crash'. 

The human factor in all this is that every one of these statistics represents heartache and distress for those who lose their home and have to accept the financial consequences.  Many people think that repossession is inevitable, but that's far from the truth.  Even if mortgage payments cannot be kept up and threats are being received from lenders there are still options.  The golden rule is to communicate with your lender if you are having difficulty in meeting your repayments – and talk to them before the situation gets out of hand.  If your home is under threat you can stop repossession by selling to Property Rescue, who will guarantee to buy it at a valuation they will prepare for you.  This service has provided a lifeline to many families who have been just days away from repossession taking place, demonstrating that it is never too late to take action.

If mortgage arrears are getting you down and your home is under threat, don't delay.  Contact Property Rescue in total confidence.  Their experts will not pressure you into making a decision that you're not happy with, but they will be pleased to explain everything to you in a straightforward manner, without any obligation.

Gordon Brown and Allistair Darling are facing opposition from their own back benchers over the controversial removal of the 10p tax rate band.  By no means will everyone lose out from this cut, but some could have debt problems exacerbated by unexpected reductions in their pay-packets.

Of particular concern are younger people who are already suffering because their fixed rate term has come to an end and their mortgage repayments have shot up, or they have just got on to the housing ladder and their income is already stretched.  The 10p tax rate abolition will affect people under 25 who don't quality for working tax credit and don't have children, plus those working part time without children. 

The cut coincides with steep rises in fuel and petrol prices, plus higher supermarket bills.  World economies are concerned about the cost of food and urging us to be less wasteful – a lesson we should all learn – but cutting back on a few groceries is almost certainly not the cure for those who face real debt problems.  Whilst the 10p rate cut is unlikely to push anyone into serious debt, it could be the straw that breaks the camel's back.

Credit card debt is endemic in today's culture but that may have to change as the banks and other lenders start tightening the purse strings.  Last summer (2007) the UK's consumer debt rose higher than our level of Gross Domestic Product (GDP), a critical indicator of the state of the British economy.  This was fuelled by the ease with which almost anyone could borrow money, regardless, it seemed, of their credit rating or ability to pay. 


When debt gets out of hand it is a major cause of stress, family problems and even breakdown.  If you are facing debt problems the best course of action is to talk to your lenders and take advice from voluntary or charitable organisations that will be able to help you budget and, in some cases, liaise with lenders or creditors on your behalf.  These people are non-judgmental and have resources at their fingertips to help you.

If your home is under threat of repossession or your levels of debt are serious enough for you to consider bankruptcy, then you need to take action.  You might want to sell your home so that you can make a fresh start or raise cash to pay off your loans; relocating to a cheaper area may be an option, or moving into rented property might give you the chance to get yourself back on a solid financial footing. 

In the current housing market, selling is not easy.  Talk to Property Rescue about their guaranteed offer for your home, plus their sell and rent back scheme.  There are no hidden costs in the offer they make, you don't have to pay for a valuation on your property, and everything is done in complete confidence.  There is no obligation to proceed and you won't be subjected to ‘hard sell' tactics.  Property Rescue could be the answer to your debt problems.  Give them a call today and move on with your life.

As Christmas approaches more and more of us turn to our credit cards to provide the funds we need to finance our seasonal purchases.  Despite the concern emanating from retailers it looks as if we are set to spend record amounts again this year.  During the Christmas period consumers in the UK are expected to shell out an amazing £53 billion, approximately two thirds of which is likely to be made on plastic.

There is a boom in internet sales driven by more people getting online, more choice online, and lack of time to shop in the high street.  More than ten per cent of sales this Christmas are expected to be made online, equating to somewhere in the region of £5.6 billion, most of which will be paid for using credit or debit cards.

Using credit cards sensibly over the Christmas period can help you spread payments as well as provide a convenient way to shop that often gives you added protection through the card’s own refund or insurance policies.  But spending simply because you have plastic in your wallet can mean that you are storing up a crisis for the New Year.  Remember to check the interest rate your card offers: many cards carry very high rates of interest and are really only suitable if you pay back your balance in full every month.  Bear in mind that failure to pay means you will be running up a debt in interest charges alone, never mind the balance.  If you get into debt on your card you could find that your credit rating is adversely affected.

People with serious credit problems should take action and not bury their heads in the sand.  Credit problems don’t go away and have a nasty tendency to get worse!  Find out what your rights are and if there are any benefits you are entitled to (for example if you are unwell or unemployed) by contacting the local Citizens Advice Bureau.  Talk to your bank, mortgage company or lender as communication is always essential in these situations.  If you are considering the possibility of selling your home to pay off your debts, you don’t necessarily have to move out.  Property Rescue has a ‘sell and rent back’ scheme that allows you to remain in your home as a tenant after the sale has gone through.  Selling your property can be an excellent way of paying off your debts and give you the opportunity to move on with your life, but it isn’t right for everyone.  The action you take depends upon your level of debt and your personal circumstances.  Always take independent professional advice before you take action!

Property Rescue will be happy to talk to you in complete confidence about how to sell your home fast, and they will explain their ‘sell and rent back’ scheme.  They promise to make a ‘no obligation’ offer for your home.

Personal debt in the UK is reaching new heights. The first three months of this year saw almost a quarter of a million County Court Judgements (CCJs) issued on unpaid debts such as mortgages and credit cards. Three years ago the number of CCJs stood at approximately 125,000 per quarter – just half of what it is today. The new figures were released by the Registry Trust at the end of May.

At the end of March total UK personal debt was £1,318 billion, which represents a rate of debt growth of around 10% per annum. Secured lending – i.e. loans such as mortgages made against property – stood at £1,104 billion, an increase of 11.5% from the previous year.

On the one hand it seems that banks and lending institutions are prepared to lend more, but on the other hand it looks as if they are getting tough when people don’t pay. CCJs on unsecured loans are often backed up by action from baliffs which means property is likely to be removed from your home and sold in order to pay your debts. If your loan is secured against your property however, you face the very real threat of having your home repossessed.

Property Rescue can help you clear your debts or get rid of the threat of repossession. In some instances people have both mortgage arrears and credit card debts and in these cases Property Rescue will work with you to clear both, allowing you to make a fresh start. Contact them for more information and an informal, no obligation chat.

Most people look forward to retirement as a time when they can spend more time with family and friends, do some travelling, take up a hobby or simply relax. Ideally, that’s exactly what retirement should be, but for some the ideal and the reality are worlds apart.

The people who can count on company pensions – especially final salary schemes – are becoming fewer and despite warnings many of us choose to spend our hard earned cash rather than put sufficient money into our pension plans to allow us to remain affluent after we retire. The Pensions Advisory service has this week said that as many as ten million employees could have a shortfall in their pension because they are not part of a company pension scheme.

As house prices increase and people take on larger mortgages or release equity in their homes to fund other purchases, it is becoming more common for mortgages to extend past the normal retirement age. For these people a significant drop in income could be a real problem; the only solutions to which are to continue the mortgage over a longer period of time and hence reduce the monthly payments, or sell up and move to a less expensive property.

If you find yourself needing to sell your home to liquidate your assets you should bear in mind the services offered by Property Rescue. Realistically priced homes in sought after areas are likely to be snapped up by buyers, but for those that are in need of repair, have structural problems or are less attractive to the average buyer, a sale may be hard to come by. Property Rescue guarantee to buy your property, no matter what its condition. Get in touch to explore the options rather than continue the struggle of managing a debt you can ill afford.

Personal debt figures are always hitting the headlines. But what do these figures include and how many people in the UK do they affect?

Personal debt can be divided into three basic categories – secured lending (i.e. a mortgage), unsecured consumer lending (for example, a loan for your car or for your furniture), and credit card debt. Over the past ten years all three types of debt have spiralled upwards and at the end of 2006 the nation’s personal debt total topped ?1,291 billion. In the month of December 2006 alone, consumer credit lending grew by ?1 billion.

The average household debt is now almost ?8,800 and that doesn’t include mortgages. Of course, for every household that has a debt there is one that has no debt whatsoever, so this average figure means that some households owe way more than the ?8,800 mark and, in all likelihood, their debt will be increasing rather than diminishing especially where debt has been run up on high interest credit cards. It’s a fact of life that some people can’t even keep up with their interest payments let alone start to repay the loan itself. It’s estimated that around one in ten people in the UK have ‘unmanageable’ levels of debt.

Perhaps the worse thing that can be done about personal debt is….nothing! To stick one’s head in the sand and refuse to face painful truths about financial circumstances is never the answer. The local Citizens Advice Bureau will be only too pleased to help you work out how best to go about repaying your debt and examine the options with you, explaining the consequences of personal bankruptcy and, in some cases, liaising on your behalf with the companies to whom you owe money.

For the unlucky few, personal debt goes beyond their credit card and starts to threaten their everyday security and welfare. If you are under threat of having your home repossessed because you are unable to keep up your mortgage repayments, you need to take action as quickly as possible. Ignoring the problem will not make it go away! Property Rescue can offer a lifeline to people in this situation through purchasing their home but allowing them to stay where they are as tenants. They also give the option for the sellers to buy back their home at a later date if they wish to do. If they decide not to, there’s no obligation for them to proceed and they can simply stay where they are, continuing their occupation of the property as tenants.

Selling your home is never the first option, but for some it can mean the difference between a secure family life and becoming homeless. Another huge advantage for those who have accrued considerable personal debt is that the sale of their home frees up money to clear those debts and start again with a clean sheet. Property Rescue will talk to you about how this can be achieved at the time your home is valued.

There is never any obligation to proceed once Property Rescue have given you a valuation on your home. You won’t be hassled by salespeople calling or phoning, and even if you do go ahead, the whole process is discreet and completely confidential. You can find further details on ‘sell and rent back’ and ‘buy back’ options on the Property Rescue website.