Property Rescue Blog

It’s that time of year when we all become frazzled with the chores of Christmas, the biggest of which is undoubtedly the Christmas shopping.  Finding original presents for everyone can be a real nightmare and when money is tight the whole task is even more fraught.

Shops are reporting that trade is light this year – no surprise in view of the state of the economy and people’s fears over job losses.  Those who have been unlucky enough to already lose their jobs will be looking to cut costs wherever they can, whilst others, such as the thousands employed by Woolworths, will be looking to the future with trepidation.

It is tempting to put the Christmas purchases on the credit card and worry about the bill later, but the income of many households has fallen and cannot be compared to this time last year when we were all spending more freely.  Those who have been unable to keep up with repayments on their credit cards will find that the interest will mount up considerably and if the debt cannot be controlled, interest will become payable on the interest.

Of course, the best policy is to use cash, not credit, for Christmas shopping.  But when we do use credit cards, keeping interest payments under control is something we all should try to do.  The nought per cent deals are few and far between, but it’s still worth shopping around to make sure you are not paying more than you have to. 

Bad debt will affect your credit rating and this will make it difficult to get future loans or credit.  If debts threaten to get out of control you need to take action.  Working out your monthly or weekly budget is always the first step and there are free services that will help you do this.  Be honest with yourself about how much you spend each week – even slight changes to your lifestyle can mean that you make savings.  Being aware of what you spend and how you spend it is a key part of controlling your outgoings.  It may be possible to manage your debt by agreeing to pay off smaller amounts of your loan or extending the time period over which repayments are made.  Always talk to your lender(s), as ignoring letters and phone calls will only make your situation worse.

Financial advisers generally regard bankruptcy as very much a last resort.  In some cases it is unavoidable but it is not a ‘soft option’ and has many repercussions.  One way of reducing or eliminating your debt could be to sell your home.  This may seem a drastic step, but with sell and rent back agreements you could stay in your home as a tenant rather than an owner.  Make sure you know all the terms of the contract before you sign up to any such scheme, and deal with a reputable company such as Property Rescue.

For information on sell and rent back, contact Property Rescue.  One of their advisers will talk to you in complete confidence and without obligation.

The Bank of England released its latest inflation report this week.  All eyes were on the Bank’s governor, Mervyn King, as he delivered the bad news that had been anticipated – that inflation is up (currently at 4.4%) and is likely to go up yet further, peaking at around 5%.

Mr King described the situation as “painful”; no under-statement for the thousands if not millions of people who are just about managing to make ends meet whilst they live in fear of inflation rising yet further.  For these households there were few rays of hope n the bank’s report.

Output growth has slowed in the UK over the first two quarters of the year.  When figures are released for the third and final quarters, the Bank of England expects to see further slowing and little change during 2009.  But there is a caveat: the Bank says that the slowdown may be “more pronounced” with the possibility of negative growth. In fact Mr King comments that the “outlook is unusually uncertain” and points to significant risks that could affect its projected figures.

It is inevitable under such circumstances that pressure is put on every household’s income, even those who have, until recently, considered themselves well off.  There is evidence that up-market suppliers of products – such as organic or farm produced food – are seeing a drop in their sales as people look to the cheaper supermarkets for a bargain.  Oil prices have started to retreat back down the scale but food costs are unlikely to do so.  Spending on credit is restricted and this has an obvious effect on spending in the high street.

Bank rates remain at 5%, despite industry wanting a cut and homeowners feeling the strain.  Although it is often high interest rates that produce a rise in home repossessions, in the present situation it is more likely to be food and energy prices that are turning the knife in the household budget.  Repossessions are rising steadily – perhaps an inevitability in such circumstances.  But anyone who faces the threat of losing their home owes it to themselves and their family to explore all the options before packing the furniture and moving out.

Talking to the lender in question is always the first step.  Voluntary and government funded agencies can help households budget, prepare payment plans and communicate with mortgage companies and banks.  If, despite this type of intervention, mortgage repayments simply cannot be met then there may seem little option.  Property Rescue is a company that buys home for cash.  They have the ability to step in at the last moment to salvage the situation and help avoid repossession taking place.  Their guarantee of a sale allows families to move on with their lives, perhaps buying a lower priced property, living in rented accommodation, or by taking advantage of the Property Rescue sell and rent back scheme.

The economic gloom that has descended on the UK may be out of our control but there are options when it comes to personal finance – even though it may not always seem like it.  For information and a free, no obligation chat, give Property Rescue a call.

A rather surprising side effect of the current economic slowdown is that the numbers of couples getting divorced has dropped by about 3%.  It seems that people who would like to sell the family home and move on to a new life find they can’t sell and therefore can’t divide up their assets.

It’s not known how many couples are affected; regardless of what the economy is doing it’s always difficult to sort out fundamental truths about relationship breakdowns from the mass of statistics.  But however we look at it, the fact is that many people getting married today will not spend the rest of their lives together.  The peak age for divorce remains the late twenties – a time when career and family start to make demands and, perhaps, when people drift apart in order in an attempt to fulfil their goals.

Regardless of the causes or numbers of divorce in this country, every one of the statistics hides a relationship breakdown that is almost always accompanied by pain and unhappiness.  For the unfortunate few who find themselves in a broken relationship yet trapped within the same four walls as their partner, the situation must be intolerable.  Re-establishing boundaries and re-creating a new life are both important parts of getting back on solid ground, emotionally, following a divorce, and it must be almost impossible to do either when your former partner is present on a daily basis.

In a market where homes simply aren’t moving off the estate agents’ books, is there anything that couples can do to move their situation forward?  Property Rescue offers a service whereby they guarantee to make an offer for any property, in any condition, in any location throughout England and Wales.  If the sellers accept that offer, the sale will go ahead quickly without any risk of it failing at a later stage. 

The amount Property Rescue offers will be below the market value, but with house prices continually falling, this is not always a significant factor.  Moving out of the family home, dividing up the assets and moving on are often the most important considerations.  Selling your home fast through Property Rescue offers other money saving incentives such as no estate agent fees, no Home Information Pack preparation and the regular legal costs on the sale are included. 

If you are feeling trapped by the property crisis and an emotionally fraught relationship, give Property Rescue a call.  They will talk to both you and your ex partner – individually if you wish – so that you can get all the information you need to make your decisions.   Give them a call today and talk to one of their advisers in complete confidence.

The words ‘negative equity’ have not been heard much over the past ten years but back in the early 90s they were on the tip of everyone’s tongue.  Could it be that we’ve had it so good over the past decade that we’ve forgotten what true economic slowdown is all about?

There are reports in the media this week that negative equity is – sadly – coming back into fashion.  The banking giant, Citigroup, announced that 250,000 households in the UK are now facing the fact that their home is valued at a sum which is less than their mortgage.  Citigroup calculate a drop of 7% in house prices over the last 9 months; although not a figure to which all lenders would agree, few would argue that we’re in a downward trend that is bound to affect homeowners in the future.  Estimates show that if house prices continue to fall one million households will be in negative equity by the end of 2009.

Factors other than national economics are starting to take their toll: the rise in oil and petrol prices and the general increase in food prices worldwide.  The Bank of England kept interest rates the same at their meeting last week and show little inclination to reduce them for fear that inflation in the UK will take off.

The big mortgages that were made essential through rising house prices mean that any hike in interest rates, however small, is hard to bear.  Many ‘buy to let’ mortgages are being pulled by lenders and borrowers without substantial deposits are frequently being turned away.  The fact is that mortgages – especially cheap mortgages – are becoming as rare as the proverbial hens teeth, thus hitting the first time buyers and sending ripples upwards through the housing market as a whole.

These factors combine to make a difficult housing market into an impossible one if you are trying to sell your home.  Drive down almost any street and it isn’t difficult to find ‘for sale’ boards, but seeking out those elusive ‘sold’ boards might take you rather longer.

Selling your house may be a nightmare in the current climate, but it is still possible with the service provided by Property Rescue.  The company guarantees to buy property of all types and in all locations, no matter what condition it is in.  Their valuation is given without obligation and in complete confidence; it will be up to you whether you want to proceed and if you decide not to, no one will call nor will you be pressured into going ahead. 

If you are beginning to think you’ll never sell your home, why not talk to Property Rescue.  Their expert advisers are waiting for your call.

Are you reading this article and wishing you were somewhere else?  If so, you might be one of the thousands of people who have a ‘For Sale’ board outside their homes.  You are desperate to move house but because the property market has slowed almost to a standstill you are stuck.  No matter how much you improve your home or drop the price, nothing happens.

When these market conditions persist it pays to explore the options.  Many people assume that the only way to sell your home is through an Estate Agent.  But there are choices and there is action you can take.  Let’s examine the options:

The Estate Agent

The traditional route to selling property, Estate Agents can still be successful.  If your home is desirable, keenly priced and in an attractive location, then you might be one of the lucky ones.  To give yourself the best chance of a sale make sure you appoint an agent who is active in the area where you live.  That might seem an obvious statement but too many people pick an agent from a nearby town or village simply because they have a reputation for valuing houses at high prices.  In this type of market you must be realistic about price if you want to sell and your agent must work hard for you and know the area.  Get competitive quotes on fees, not necessarily so that you can select the lowest, but so that you can compare and negotiate to get a good deal.  Look at other properties on that Agent’s books to see if they are comparable to yours.  It’s pointless trying to market a one bedroom city flat through an Agent that deals mainly in country houses.

The Internet

Not so long ago the internet was heralded as a new and inexpensive way of selling houses, but this has – in the main – failed to materialise.  It is, however, possible to market your house using the internet and the most commonly used route is via a site specifically designed for internet sellers.  The cost will be much less than an estate agent, but offers no guarantee of success.  Check out the search engine rankings of the site you plan to use and see how many properties they are offering.  See if other homes are for sale in your area and try to get success figures before you agree to pay any fees.

Through a Private Sale

Many people have never heard of a ‘private sale’ and don’t know what is involved.  Property Rescue is a company with strong financial backing and the ability to make a guaranteed offer for your home.  If you accept that offer a private sale will follow.  This means that your home will be sold within a set time period – often a very short space of time if that’s what you want – and there is no chance that the sale will fall through once the offer has been accepted.  There is no need to use Estate Agents or prepare a Home Information Pack, offering substantial financial savings.  Property Rescue guarantees to make an offer on all types of homes in any location, thereby offering a failsafe route to a certain sale.

If selling your home is getting you down, contact Property Rescue.  They will arrange to carry out a valuation on your property at no charge to you.  They will also explain in detail exactly what is involved so that you are clear about what will happen before you make any commitment.  There is no obligation and you are free to walk away if you wish.  Selling houses today is difficult but with Property Rescue it can be a whole lot easier.

Getting on the housing ladder is like beginning a journey on which you are not quite sure of the destination.  Initially, the object of the exercise is to have somewhere to call your own and, perhaps, to start married life or a long term relationship with the person you love.  If the rose-coloured spectacles of love are really working, you might not be too particular about where or what that home turns out to be – so long as it’s yours it is sure to be your castle!

As life continues and family arrives, your next choice of home might be based on its suitability for your children.  Or if the move happens when the kids are a bit older, the school catchment area could become your number one priority.  As well as choosing a home for its accommodation and location, factors such as adding value and investment start to come into play.

But it is often not until middle age that people get to the point when they can choose a home based on nothing more than their own preferences.  Family considerations may have lessened by this time, leaving you free to look for that elusive dream property that you know must exist somewhere.  You have lived in several homes and have found the good and bad things about each one; now you know what is important to you and you’re determined to find it.  But is it that easy?

Without wishing to dampen anyone’s enthusiasm, many estate agents and property search companies will tell you that the definitive dream home is a rare beast.  There will always be something that isn’t exactly as you want, and often the budget dominates the selection.  You may find the perfect home in the less than perfect location, or have to compromise about the type of property you buy if you are intent on living in a particular area.

So if the dream home is really that elusive, can you afford to lose out when you do eventually find it?  Selling your home via conventional means can mean getting stuck in a chain due to factors beyond your control, or worse, having to stand by while a better offer is made on the home you want to buy.

In the current housing market it can be difficult to sell any type of property.  If you have found a home that you really want, you need to ask yourself whether you can afford to let it slip through your grasp.  If you are convinced that this is the one, then you might want to call Property Rescue.  They guarantee to buy your existing home, leaving you free to move and finalise that purchase.  Their offer is fully inclusive of legal fees on your sale and you won’t need to prepare a Home Information Pack because the sale is classified as private.  Contact Property Rescue to see how much they will offer for your home.  By accepting that offer, your dream home could turn into reality.

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.

Alistair Darling gave his first budget on 12 March.  Although no longer the event it used to be, the budget still attracts the attention of the media and, to a lesser extent, the average man or woman in the street.  Few surprises are unveiled in budget speeches nowadays, as most of it has already been announced, promised, threatened or leaked!  So as anticipated, there’s very little that’s brand new.

Mr Darling did announce some help for those trying to get their feet on the first rung of the housing ladder.  Recognising how difficult it is to raise funds for a mortgage, the Chancellor announced that key workers (such as nurses and teachers) will be able to borrow from shared equity schemes.  He also introduced the idea of long term fixed interest loans, an issue that Gordon Brown made no secret of supporting in his days as Chancellor.  The idea behind this is that people would be given the ability to plan their finances over the long term and be protected against interest rate rises. 

First time purchasers are also set to benefit from a new scheme that delays the payment of stamp duty on shared ownership homes until 80% of the home has been paid for.  Although this will reduce initial up front payments at a time of financial strain, it’s likely to be a blow to home owners when the time comes to pay up; stamp duty normally amounts to a substantial sum and it’s never a pleasant surprise to have to pay for something that was incurred many years previously.

There is little or no respite for those trying to sell their homes in a beleaguered property market.  The only slight glimmer of hope over the long term is the fact that 70,000 more homes will be built on sites that have been identified by the government.  This may help ease the housing shortage, but is unlikely to do anything for buyers or sellers in the short term. 

If you are trying to sell because of financial pressures, work commitments, or you are simply in the position where your house has been on the market for a long time, then give Property Rescue a call.  They act in complete confidence and will be pleased to talk through how their guaranteed offer scheme works.  No matter where your home is or what condition it is in, Property Rescue will value it and make you an offer.  If you decide to accept, your home could be sold within a few days or weeks.

Property Rescue’s valuation service is completely free and at no stage will you be put under any pressure to proceed.

In the current property market sales are slow.  Beleaguered buyers are less than keen on the introduction of new policies that might slow down the sale or make it even more expensive than it is already…and understandably so.  The advent of Home Information Packs places an obligation on the seller to provide certain information ready for anyone who might want to buy their property, but how onerous is that obligation and is it likely to quicken or elongate property purchases?

Home Information Packs, or HIPs as they have become known, were introduced gradually from 1 August last year.  As from 14 December 2007 every home in England and Wales needs a HIP, unless that home meets certain exceptions.  In brief, these are:

• Accommodation that is used for holiday lets at least 11 months a year.  But the accommodation must be restricted to holiday use by planning regulations – the owners’ intentions on property use are not enough.
• Accommodation or land that is sold as a ‘mixed sale’, i.e. part of another sale.  This is a complicated ruling but might, for example, apply to farms where barns, sheds or outbuildings are considered part of the lot for sale.
• Park homes.
• New builds.
• Properties about to be demolished (where planning permission to demolish has been granted) and properties considered as unsafe to enter.
• Properties for sale without vacant possession, i.e. with a tenant in situ.

This is only a basic list and you are advised to consult an estate agent or solicitor to find out the details for your own situation.  Most homes for sale do need a HIP if they are to be sold on the open market; the cost of preparation can range from a few hundred pounds upwards.

Commentators have yet to agree on whether HIPs are worthwhile.  Some are holding to the opinion that the information provided in a HIP is unlikely to be of much use should the sale take several months to conclude.  However, potential buyers are able to see the HIP at an early stage in negotiations and at least they have the opportunity to take note of any factors that might stop them going ahead.  There is some evidence that the necessity to prepare a HIP is holding back home owners from putting their property on the market.  In overall terms the HIP is a relatively small part of the ‘moving house’ budget, so one could draw the conclusion that deterring the less than serious vendor is no bad thing.

Forecasters say the market is unlikely to pick up over the next few months.  For some, the delay is frustrating but little more than inconvenient.  But for others, delays can mean splitting up their family or risking financial meltdown.  If you find yourself in this situation call Property Rescue.  They guarantee to make an offer for your home whatever its condition or location.  Best of all, selling privately to Property Rescue means you don’t need to prepare a HIP…hooray!

For more information on selling your home fast call Property Rescue 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.