Property Rescue Blog

As we approach Christmas and the New Year it’s a good time to reflect on what has happened in our economy during the past 12 months and where we are likely to go as the recession bites in 2009. 

2008 has been a traumatic year for the world’s financial markets.  One could be forgiven for being rather gloomy about the current situation and no one would argue that there is plenty to be gloomy about!  However, there are one or two chinks of sunshine and perhaps we should – especially at this time of year – try to look at the more positive aspects of recent events.  After all, the banks could have gone bankrupt and they didn’t, housing prices could have crashed beyond all expectations and they haven’t, and now, as we head towards 2009, there is just a glimmer of hope that property is starting to pick up again, albeit very slowly.

Another fact is low interest rates – bad news for savers but good news for mortgage holders because whilst lenders haven’t passed on the full interest rate decrease, the majority of loans cost substantially less to service than they did this time last year.  Oil prices are about a third of their peak and this is reflected in fuel prices on the forecourt.  Food prices have stabilised but with competition strong, the supermarkets have some exceptionally good promotions that are likely to benefit most shoppers.

Nevertheless, thousands of people have already lost their jobs and more will do so over the coming months.  Some pundits say that the total jobless will reach 2.5 million by April next year.  Let’s hope they’re wrong but if those predictions are anywhere near correct there are many who will be struggling with their mortgage repayments, even should bank rates fall further.  

Christmas is a time when we expect to be in our homes with our family and loved ones, feeling secure about the future.  Unfortunately, there are many who will not be able to do that this year, and will be very fearful about their job security as they start back at work in 2009.  Remaining in your home is a top priority for many, no matter what their financial circumstances, but as income reduces it’s an objective that can sometimes seem impossible.

Property Rescue has a scheme whereby people can stay in their own homes even if they can no longer afford their mortgage repayments.  This is called a ‘sell and rent back’ scheme, where you, as a property owner, sell your home to Property Rescue but can stay in it as a tenant.  Rent is agreed in advance and you have the normal protection under the law that any tenant has.  Although you will no longer own your home, you don’t have the disruption of moving house nor the trauma of repossession.

Property Rescue has helped hundreds of families over 2008.  If you are in a situation where you face the possibility of repossession or your debts are threatening to overwhelm you, call Property Rescue for an informal chat.  Their consultants will talk to you without obligation and give you a free valuation for your home.

The Bank of England announced on Thursday 4 December that another one per cent would come off the base rate, bringing rates down to two per cent, the lowest ever in the Bank’s history.

Whilst borrowers will undoubtedly be delighted at this news, savers and those with pensions are understandably less enthusiastic.  In real terms, they are seeing a reduction in their savings as the interest rate drops below the rate of inflation, leaving them with a deficit.  Shopping around for the best savings rates is more important than ever, but if your money is tied up in a bond or fixed term investment you could be looking at the value of your fund with horror, especially if your money cannot be moved without penalties.  If you are lucky enough to have an investment where interest rates are fixed then there is no problem, but where returns are linked to stock market performance you will see the value of your investment seriously impacted.

Lenders are certain to pass on the rate cut to borrowers but in varying degrees due to the need to balance the demands of mortgage holders with the need to attract and retain savers.  There will be differences between standard variable rate mortgages and other types of deals.  Some people are finding out for the first time that their tracker mortgage has a clause that allows lenders to stop reducing the rate when the bank rate falls below a certain level; in other words, the tracker stops tracking!  Check the wording of your mortgage agreement to see if this applies to you. 

House price falls have slowed slightly, whilst continuing their downward trend.  More worrying is a report by the Council of Mortgage Lenders that indicates a rise in evictions due to repossessions.  At the end of November the Council reported a 15 year high with figures that equate to 120 people being evicted from their homes every day.  The CML predicts that the situation will deteriorate further during 2009, even if lenders take a more understanding approach to their customers’ needs.

Repossession, and the threat of repossession, is stressful and difficult to manage.  The effects can be far reaching, lasting for many years after the repossession has taken place.  Anyone who faces the possibility of having their home repossessed should explore all the options before making any decisions.  It is tempting to feel helpless at such a time and be carried along by the tide of events, but always ask for advice from the agencies that are there to assist.  Unlike other less reputation organisations, Property Rescue recommends that you do this before you take the important step of allowing your home to be repossessed or selling up.  Property Rescue gives you a guarantee that they will buy your home, but also provide you with all the facts so that you can make an informed, independent, decision, without pressure.

For information and a free, no obligation valuation of your home, call Property Rescue today.

It’s the question on every homeowners’ lips.  Just how far, and how fast, will property values fall and when will it all come to an end?   Let’s begin by taking a look back at the staggering change in the market we’ve seen over the past year or so.

Towards the end of 2007 only a tiny minority of financial commentators were forecasting a slump in the value of property but the New Year brought with it pessimism and – for the first time in many years – predictions that prices would fall.  At that time the fall was described as a mere levelling off, perhaps a 5% reduction; a theme that continued into the Spring.  But as Summer arrived that percentage became higher, with many banks, lenders and experts saying that the average home would drop in value by between 10% and 15%.  Bad enough, but still far from today’s forecasts of a 25% to 30% drop.

Respected property giant, Savills, is sticking with its analysis that property will have slumped by 25% from its peak at the end of 2009.  They point out, however, that in central London falls could be up to 30%.  On a brighter note, they do predict a slow recovery, which – they say – will be strongest in the South East and will begin in 2010. 

Nationwide Building Society confirms these fears, stating that it too expects house prices to continue to fall over the next two years.  The lender has greatly reduced the number of available mortgages as its pre-tax profits drop 18% over the six months to 30 September. 

It would seem, therefore, that there is little chance of imminent recovery and all the indicators point to the fact that house prices have yet to bottom out.  Whilst this remains the case, first time buyers are hesitant, waiting to see if they can get a better deal and negotiating hard with lenders for the few available mortgages.  Those most vulnerable are those who have bought over the past two to five years when prices were high and lending was lax.  Mortgages of many multiples of salary can spell disaster in a falling market as negative equity comes knocking at the door and job security is threatened.

In an uncertain market there is a certain way to avoid your home being repossessed and that is to sell to Property Rescue.  Their experts will give you a no obligation valuation for your home and although this will be below the current market value, it will – if you accept the offer – guarantee a sale.  If you delay, the value of your home is likely to fall further, so the loss you make on the sale needs to be weighed against the consequences of putting off your decision.  Anyone facing the threat of repossession will not have the luxury of time on their side and will need to act quickly. 

Property Rescue talk to their clients in complete confidence.  They recognise the stress that financial hardship engenders and will explain the process of buying your home in a straightforward way.  Remember, there is no obligation to proceed if you are not completely happy with the service they are offering.  Call Property Rescue today to find out more.

As anticipated, the Bank of England’s Monetary Policy Committee (MCP) has cut interest rates today.  What was not anticipated, however, is the size of that cut.  Half of one per cent was expected, maybe one per cent if the bank was feeling brave, but very few foretold the massive one and a half per cent that the MPC obviously feels is required if it is to have any effect on inflation and the threat of recession.

This brings bank rates to 3.5% and is a move that has been welcomed by the CBI but how will it affect those with mortgages, credit card debt or other loans? 

One of the areas where bank rates affect most of us is the impact they have on our mortgages.  Indications are that there will be a downward movement in mortgage interest rates but so far the lenders are ‘unsure’ as to how much of this cut will be passed on to borrowers.  The value of property has dropped sharply over the past year and those who have borrowed against the value of their home might be feeling the pinch.  Similarly, those who bought property recently could be facing the fact that their home has decreased in value.

The credit agency Experian quoted some astounding figures in August this year, in which they said that  many middle class areas have household debt of more than £53,000, not including mortgages.  Spending in good times when property values are high and jobs are secure is one thing; paying it back in less prosperous circumstances is quite another, even if the interest rate has dropped.

The question on everyone’s lips is whether this huge bank rate cut will boost the ailing property market.  First time buyers ought to be encouraged but whilst mortgages are scarce and nervousness over long term values remains, the jury is out as to whether it will be enough to stage a revival.  Mortgage interest reductions will help some households manage their finances, but set against this are Christmas shopping costs, a huge level of individual debt and dramatic increases in fuel bills, the effect of which is likely to hit in the first quarter of next year.  

Families in financial crisis will need to look hard at their Christmas budget and think of ways in which they can either cut their expenditure or boost their income.  Second jobs, renting out a room in the house, selling unwanted items on the internet – these are all ways of making a bit of extra cash to help out over the Christmas season.  But in cases where financial problems are serious these initiatives alone are unlikely to be enough.

Facing debt is difficult, lonely and stressful. There are agencies that help people in this financial crisis, such as the Citizens Advice Bureau and the government’s national debt line. If you want to sell your home to raise cash or to avoid repossession, you may be thinking a sale will be impossible in the current climate. That’s where Property Rescue can help.  They guarantee to give you a valuation for your home which, if you accept it, will lead to a fast, secure sale.

Give Property Rescue a call for more details.  You can speak to one of their experienced advisers in complete confidence and entirely without obligation.

Looking back a few months no one would have predicted that an interest rate cut would be made on a global scale, but that’s exactly what happened this week as world financial leaders reacted to the ever deepening crisis in this dramatic move.

The rate cut of half of one per cent came on the back of the UK government announcement of a rescue plan for banks and a guarantee to savers in the collapsed Icelandic bank, Icesave.  The nationalisation of Northern Rock, the bank debt guarantee, the short term loans that will be made to the banks and a treasury cash injection all add up to an astonishing £500 billion.  Part of this sum is classed as investment on which – if the markets recover – the government will earn bonuses, but as every investor knows, losses can be made as easily as gains.  Where this leaves the financial markets, the debt of the tax payer and the overall wealth of our country, only time will tell.

In the short term, the most pressing need for hard pushed home owners is a cut in their mortgage rates.  But will the banks pass the rate cut on to their borrowers at a time when their priority is to attract and retain savers?  Some banks did respond immediately to the Bank of England’s rate cut on Wednesday.  Lloyds TSB reduced the rate of its standard variable mortgage to 6.5%, to take effect from the beginning of November; no news yet on tracker rates for new customers although existing tracker mortgages also benefit from the cut.  Others making similar responses to their standard variable rates included Barclays, Halifax, Natwest, and the Woolwich.  At present it looks as if savers might benefit from the banks’ need to attract investment, but only time will tell whether savings rates will remain high.

Despite these dramatic measures the crisis of confidence is far from over.  In normal times, a rate cut of half a per cent might be sufficient to boost house sales, but these are far from normal times.  Uncertainty and nervousness are the key factors affecting not only stocks and shares, but people on the high street.  That includes those who want to sell or buy property, with only the brave few venturing out into a turbulent market.

‘For Sale’ boards are a common sight but the ‘Sold’ board is fast becoming an endangered species.  If you cannot sell your home but you need to move, give Property Rescue a call.  Despite the economic downturn they will give you a guaranteed offer for your property, regardless of its condition or location.  Should you accept their valuation and subsequent offer, the sale will go through in a matter of weeks or even days.  In a time of uncertainty it’s good to know some things don’t change!

Call Property Rescue for a free, informal chat with no obligation.

The number of people who are struggling to meet their mortgage repayments is increasing.  In February, the Council of Mortgage Lenders reported that there were 130,000 mortgages that were at least three months in arrears.

The figure for mortgages within what is known as the ‘sub prime’ market is even worse.  Sub prime mortgages are those given to people with poor credit histories, often at a higher rate of interest than most high street lenders are offering.  In this sector approximately one in five borrowers were in arrears with their payments over the first three months of this year.  The actual figures were 21.7% against 19.4% in the same quarter last year.  This should be viewed against the fact that sub prime lending is increasing, despite the lessons of the sub prime market collapse in the United States.

Although the housing market appears to be stagnant, there is little slow down in gross lending, with £25.5 billion being borrowed during May, only slightly down on April’s figure of £26.1 billion but a significant drop from May 2007 when £31.5 billion was lent in mortgages.

Shelter – the charity that tackles homelessness – is worried about the inability of people to pay their mortgages and the increasing rate of home repossessions.  It claims that people are turning to their credit cards to help them meet housing costs, and 2.8 million have had to resort to borrowing from friends or family to keep afloat.

Borrowers with poor credit histories are not the only ones facing problems.  Within the prime mortgage market arrears are also rising, prompting the Council of Mortgage Lenders to reiterate its prediction that we are likely to see a 50% increase in repossession levels this year. 

If you are facing problems in meeting mortgage repayments there are several steps you should consider.  Try not to use your credit card to pay off housing costs because this is an extremely expensive way of funding your borrowing.  Instead, talk to your mortgage provider and explain the difficulties you are having.  They will be more inclined to help you if you approach them early rather than burying your head in the sand until the situation is out of control.  Agencies such as the Citizens Advice Bureau can provide useful advice and help you set about budgeting if there is a chance your debts can be repaid.

People who have no way of repaying arrears don’t necessarily have to accept repossession as an inevitable outcome.  Property Rescue can salvage the situation by buying your home from you and either providing you with a cash lump sum – once your mortgage and loans have been repaid – with which you can start to rebuild your life, or allow you to stay in your home as a tenant under a buy and rent back scheme.

The number one rule when facing mortgage arrears is not to ignore the problem.  It won’t go away and refusing to face up to the situation will make things worse.  Contact Property Rescue for a free, informal chat with no obligation.  No one will pressure you into proceeding down a route that you don’t want to take and no salesmen will bother you.  The Property Rescue experts are waiting to take your call.

Those were the words of Mervyn King, the Governor of the Bank of England, during his speech to Bankers in the City on Wednesday.  The picture painted by Mr King was dire, but however we like to look at it, the changing economic landscape means we’ll all have to put our hands in our pockets.

Mr King warned against a culture of pay demands to provide for increased household costs, a sentiment that is likely to be unpopular on the high street where the average consumer is feeling the pinch as gas, electric and oil prices continue to rise.  Further warnings came this week with the news that gas and electric could rise by up to 40% by the end of this year, pushing more and more people into debt or poverty, or both. 

So why doesn’t Mr King want wages to rise to pay for all this?  Looking back to the 70s, inflation was out of control and so were wage increases driven by union demands.  No one would want that situation to return, but are the key factors the same now as they were then?  Price rises are highest in essentials such as food, petrol and heating; luxury items are costing less and less, trade unions have lost the power they once had, employment figures remain relatively stable and the overall rate of inflation is only 3.3%.

Despite this, the Bank of England relies on interest rates as its key weapon in the attack against inflation.  If wage demands get out of hand inflation will go up.  In order to curb that, Mr King would need – and has threatened – to increase interest rates, which in turn would lead to pressure on businesses, a rise in unemployment and an increase in home repossessions. 

The uncertainty therefore continues.  No home owner with a large mortgage can rest easy, even if they have a good level of income.  Negative equity is knocking at the doors of many recent purchasers and the threat of further economic hardship when winter fuel bills drop on to the doormat, is bound to affect many.

If you think you are likely to face financial problems try to pre-empt the situation by talking to one of the voluntary bureaus that will help you with budgeting and, in some cases, liaise with your debtors on your behalf.  If you stand a chance of losing your home through repossession, talk to Property Rescue.  Their guarantee to buy your home could mean the difference between becoming bankrupt and remaining solvent.   You could even stay in your home as a tenant after it has been sold to Property Rescue, enjoying all the rights that tenants normally have, without the disruption caused by moving to another area.

For further information or advice, call Property Rescue today.  Their experienced advisers will talk to you in complete confidence and without any obligation.

Today’s meeting of the Bank of England’s Monetary Policy Committee decided that bank rates should stay at 5.0%.  This means there has been no movement in the Bank rate since the 0.25% cut on 10 April.

The Bank is concerned about the level of inflation, which at 3.0% is ahead of government targets.  A report published by the Bank during May expressed fears that inflation could get out of hand if interest rates were lowered.  But many people are harbouring a suspicion that inflation is already ahead of published figures.  Rising fuel, utility bills and food costs (which are estimated to be up 6% on last year) means that people have no choice but to spend extra on life’s essentials.  Many luxury goods have dropped in price, which might be comforting if you’re shopping for a new TV but no use at all if the weekly budget doesn’t stretch to cover your child care costs.

Economists are divided into those who think interest rates will have to rise to keep inflation in check, and those who think they will fall but probably not until late in the summer or early autumn.  Rising interest rates will put pressure on the demand for pay increases and will affect an economy already in slow-down mode, but for the home owner they could be disastrous.

Those with high mortgages are feeling the pinch, and not just because the mortgage repayments have risen.  Other essential costs are now so high that careful budgeting is required if the income and outgoings are to balance.  With no interest rate drop in sight, no end to what seems like ever increasing petrol prices, and murmurings that food has been too cheap for too long, what can the hard-pressed homeowner do?

Budgeting is vital to stay afloat.  It can be useful to check your own inflation rate by looking back at bills from six months or a year ago, seeing what has risen the most and targeting those items as ones on which you need to economise.  If you are unable to meet your mortgage repayments it is worth asking your mortgage or loan company if they can help by reducing interest payments for a period of time, or extend the term of the loan to make repayments more affordable.

If you need to sell up to pay off your debts you are unlikely to find much encouragement in the housing market, which continues to slow.  The Halifax reported a drop of 2.4% in house prices during May, continuing the downward trend.  It’s not all bad news as the drop will help first time buyers get on the housing ladder and, over time, stimulate the market, but it remains gloomy reading for anyone wanting to sell quickly.

With Property Rescue you WILL be able to sell your home fast because they promise to make a guaranteed offer for any home in any location, and in any condition.  Simply call them for details and a no-obligation valuation of your home.  Don’t leave financial problems unattended or pretend they’re not happening; these decisions are painful and difficult but are always better tackled head-on.  The advice from Property Rescue is free and in confidence.

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.

Interest rates have seen a further cut today with the announcement by the Bank of England that the base rate will be lowered to 5%.  But the recent series of cuts is not filtering through to the mortgage market, where loans are in short supply.

If you are moving home you will probably need to look at costs carefully.  Your mortgage might cost you more, and you may not achieve the original asking price for your home.  It is surprising, especially in this economic climate, that few people bother to prepare a budget for their move and even fewer remember to include everything they should.  Naturally, anyone’s costs can escalate out of control if they get carried away with the credit card, so here are some top tips to help you keep your finances under check:

1. Getting your existing home ready to sell might cost more than you thought.  Buyers today are fussy about what they buy, and in a slow market they can afford to be!  A pot of paint and new cushions won’t cost much, but if you need to change the avocado bathroom suite, landscape the front garden and replace the rotten window frames you’ll be looking at thousands of pounds.  Property Rescue buy houses as they see them.  In the current market, that’s great news!
2. If you are selling on the open market you will need a Home Information Pack, which can cost several hundred pounds to prepare.  HIPs are now obligatory on all property types unless you sell privately.  Selling to Property Rescue classifies as a private sale and therefore saves you this cost.
3. Shop around for your estate agent.  Don’t necessarily go for the lowest price (a low price is useless if he or she can’t sell your home) but find out what the market rate is and try to negotiate a deal that at least matches it.  In today’s market fewer houses are being sold so the agents will want your business.
4. Do the same with removal firms.  Unless you are completely satisfied you will get a good job it might be sensible to avoid the ‘man with a van’, but do get quotes from several different companies.  Find out what insurance cover they offer and remember that large or valuable items sometimes need a specialist remover.  If you don’t have a great deal of furniture, consider hiring a van and enlisting the help of friends for the day.
5. Choose your solicitor with care.  Any solicitor worth his or her salt will be prepared to give you a quotation for conveyancing fees so make use of this service.  Best of all, get a recommendation from a friend – their experience is likely to be representative of how you will be treated.  Choose someone with whom you can communicate easily and who will keep you informed every step of the way.  You will have to pay fees on selling and buying, unless you sell through Property Rescue when legal fees on your sale are included in their valuation for your home.
6. If you’re buying a brand new home remember that nothing will be left behind by a previous owner.  This might seem like good news, but it probably means you’ll have no lampshades, no carpets, no curtains, no blinds, no curtain poles and no washing line.  Put something in your budget for these items; look for cheap blinds and laminate flooring from DIY stores to provide an adequate solution whilst you save up for your silk drapes and hardwood floor!

Property Rescue buys houses of all types, in all locations and in all conditions.  The valuation they give on your home is fully inclusive.  Call today to see how their service can provide a quick easy way to achieve a guaranteed sale.