Property Rescue Blog

House prices in England and Wales fell by an average of 13.8% last year.  There are conflicting opinions on how the property market will fare as the recession deepens, although it is certain that substantial gains are out of the question.  Anyone embarking on the property ladder for the first time or trying to sell their home is in for a bumpy ride.

The 2008 price fall was the biggest drop the market has seen, even outdoing the famous 1932 depression.  Some parts of the country fared better than others with Wales only seeing an 8.6% drop, while the South West saw almost double that as a massive 15.6% was cut off the value of their homes.

The practice of taking out equity in the home, or re-mortgaging, has almost come to a halt as lenders become more cautious and homeowners are unsure as to what their property will be worth in a year or two’s time.  But is this caution justified?

On the one hand the signs that property values will fall further seem strong.  They include factors such as:

-    a worsening recession
-    an increasing number of company bankruptcies and personal insolvencies
-    a rise in the jobless figures
-    a lack of availability in the mortgage market
-    a belief that property was over-priced and still has some way to fall before it     achieves realistic values

The other side of the argument points to more positive signals, including:

-    a steady rise over the past six months of people wanting to buy
-    a bottoming out of the housing market, prompting people to buy now
-    a strong message from the Government that lending needs to start again
-    low interest rates, making mortgages more affordable

In fact, the situation is so complicated that two of the biggest lenders, Halifax and Nationwide, have declined to predict how the market will perform this year.  Likewise, the Council of Mortgage Lenders is not putting forward an opinion, arguing that there are too many unknowns to make an accurate forecast.  The most pessimistic commentators see prices falling continually through 2010, 2011 and even into 2012, but many others think that the economy as a whole will start to come out of recession during 2010 and therefore don’t agree with such a gloomy outlook.

People who need to move house are in an awkward situation.  How much is their property worth?  Is that figure going down or is it stable?  What’s the likelihood of finding a buyer, and will that buyer be able see the deal through to its conclusion?

There are so many unknowns in property sales even when the market is buoyant.  It is good to know that there is a way of selling your property regardless of the state of the market, and that is through Property Rescue.  They promise to give you a valuation for your home which, if you accept it, will lead to a guaranteed sale.

For information on how to sell your home fast, contact Property Rescue.

Since the last two decades, banks and estate agents have been providing more versatile options to the first time buyers of a home. These options have enabled many young and newly married partners to buy a property; a luxury that they couldn’t afford in the recent past. It is estimated that nearly 70 percent of the UK population who is legally entitled to purchase a property, can easily do so. Apart from these potential buyers, almost 95 percent dream of buying a dream home. This said, what about the 25 percent of home owners who may find it hard to buy a home? The good news is that there are many options for the first time buyers, only if they know.

Variable Loans

If you have a good credit history then it is the time to head straight to the drawing board and start planning. If not, first time buyers should seek the help of a financial advisor. Every large company employ these experts whose only job is to help the buyers get a loan. Most probably, the loans will be variable which means that the lender may increase the interest rates if the Bank of England chooses to increase their interest rates. Also notice that many lenders increase the rate of interest without any official increase, primarily to secure their own financials. Anyway, variable loans are always an option for those who are desperate to own a property.

Right to Own

Another much overlooked option for the first time buyers is the ‘Right to Own’ scheme. If you have been living in a property overseen by a Housing Association or a council home then you have a right to own the home at a steep discount. The only restriction is that you must be a good tenant who pays the rent and utility bills, regularly. You must also be living in the same home for five consecutive years. Actually, you can ask the owners to consider you for the scheme at the beginning of fourth year. For many, this is still the best option.

Long Term Fixed Rates

Another option for the first time owners is to get a long term fixed rate. The only drawback to this type of loan is a fine on the early payment of the loan. Recently, Nationwide has started giving 25 years loans at 6.79 %. It is not the only fixed term loan. There are now more than 140 types of different long term fixed loans offered for ten years or more.

100 PLUS Mortgage

To ease of the burden for the first time buyers of the UK property, certain lenders have started providing 100% plus mortgage. As the name suggests, the loan is approved for more than 100% of the value of a property. This is done to overcome any additional costs associated with buying a property. These costs can include fees of the lawyers, financial advisors and other legal matters. It is estimated that a typical first time owner of a UK property spends around £16,000 in such charges, the very first year after a purchase.

Of course! The options for the first time buyer are on the rise, every year. There are various other methods to get on the home ownership ladder, including Social Home Buy, Key Worker Living, Joint Ownership and Rent to Buy. The list is limitless, only if one knows how?

Over recent years the buy to let market has been buoyant.  People who either had the cash or access to mortgage lending saw property as a failsafe means of making money and a solid long term investment.  But as property prices have crashed the buy to let market has suffered.  Those with several properties have found themselves particularly vulnerable as huge sums have been wiped off their portfolios.

Mortgage lenders have traditionally viewed the buy to let market as safer than the general mortgage sector as it has, generally, performed better.  But statistics from the Council of Mortgage Lenders (CML) published in November last year, show buy to let mortgages are also subject to arrears.  In many areas of the country, apartments and starter homes have been built until the market is close on saturation point and this, combined with falling rents, has left landlords dangerously exposed to the situation where their rental income does not fulfil their mortgage obligations.  If landlords cannot sell their property, or achieve a high enough price to cover the outstanding mortgage, then they will find themselves in trouble. 

Defaults on mortgage payments in this sector were rising at the end of last year – a trend that is expected to continue for the foreseeable future.  The CML does not anticipate a substantial number of repossessions in the buy to let market, but it does warn that landlords are being – and will continue to be – affected by the property crash and economic downturn, with some going into administration or declaring themselves bankrupt. 

Should landlords need to re-mortgage it is likely to be difficult to find a buy to let deal in the current lending market place.  The number and availability of products is far less than it was this time last year; landlords can expect to pay higher interest rates and/or fund a large proportion of the property price as a deposit. 

Until the market picks up and lending flows more freely, the situation is unlikely to improve.  Inevitably, some landlords will find themselves facing repossession or the possibility of becoming bankrupt simply because there looks to be no available exit strategy.

Property Rescue will buy property of any type, in any condition.  If you are a landlord and need to sell up to avoid going further into debt or tarnishing your credit rating by getting into arrears, contact Property Rescue for an informal chat with one of their advisers.  They will want to know about the tenancy of your property, whether it is currently occupied and when the lease ends.  All calls are in complete confidence and there is no obligation to proceed, even once a valuation has been provided.

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.

The dramatic 1.5% cut to base rates announced by the Bank of England last week has been welcomed by business, industry and homeowners.  Yet despite this fall in interest rates and the money that has been pumped into the banking system by the government, there is still a shortage of mortgages for first time buyers.

The approval rate for new mortgages has slowed substantially over past months.  Around 57% less mortgages are being approved than at this time last year.  The figures hit rock bottom in August when just £2.1 billion was put into new loans – the lowest amount since 2001.

In the main, banks and building societies appear to be passing on last week’s bank rate cut to its borrowers – at least in part.  But mortgages that benefit from falling rates, such as tracker deals, are in short supply, and new borrowers are expected to find a hefty deposit before lenders will consider their mortgage application.  The nervousness and uncertainty that overshadows the housing market makes it difficult to be optimistic.  Many analysts predict that the next two years will produce further falls in property prices with only a slow recovery in market activity.

Estate agents have borne the brunt of many a sarcastic comment during the rich pickings of recent good times, but they are suffering more than most at present.  The RICS (Royal institution of Chartered Surveyors) reports that on average estate agents sold under 11 homes during the quarter August to October this year – the lowest level since the RICS began keeping statistics back in 1978.  Agencies that expanded to meet the demand of a bullish market are now having to lay off staff or close branches to cope with the sudden downturn.

Anyone wanting to sell their home is at the mercy of what has become a global economic crisis.  An all pervading feeling of helplessness has engulfed vendors as they simply wait, hands tied, to see what the future will bring. 

Property Rescue provides a way of selling up and moving on despite current economic uncertainty.  The offer is simple and straightforward with no hidden extras to pay and no obligation to proceed.  Advice is free and confidential, and you can talk to an expert about your circumstances and your property.  If you accept Property Rescue’s offer for your home, the sale can proceed swiftly without the possibility of collapsing at a later date.  You can be assured that your sale will go through, leaving you free to start planning for the future.

For details and a free, no obligation chat, contact Property Rescue today.

This week the government has announced a £1bn package of measures designed to help homeowners through the current financial crisis.  Whilst everyone must surely welcome this news, the question as to whether it will go any way towards resolving the stagnant housing market remains unanswered.

In brief, the measures include:

• raising the threshold at which stamp duty becomes payable on property     purchase from £125,000 to £175,000 – effective immediately
• more government help with mortgage interest payments for those on income support or claiming job seekers allowance, plus a reduction in the length of time such people have to wait before they’re entitled to this help (a reduction from 39 weeks to 13 weeks)
• raising the threshold of the loan value on which people on income support and job seekers allowance can get help with interest payments – up by £75,000 to £175,000
• £200m into a scheme whereby ‘social landlords’, such as councils and housing associations, will help homeowners who get into difficulties – perhaps through part ownership or additional lending

Some first time buyers who have been putting off the purchase of their first home may be persuaded that this is now a good time to enter the market.  If this happens it could provide a kick start to the bottom property tier and help those in existing chains to complete.  However, there is scepticism over the effectiveness of these measures because none of them address the issue of money supply, which has been at the heart of the credit crunch  The number of mortgages being approved has fallen by more than 70% over the past year – a trend that is expected to continue.  Without funds available for first time buyers and others, the housing market seems doomed to remain in its current state of malaise.

Interest rates were held at 5% by the Bank of England at its meeting on 4 September – the fifth month in a row that rates have remained static as the Bank struggle to contain rising inflation.  The threat of a recession could, however, mean that the Monetary Policy Committee elect to reduce interest rates very soon in an attempt to buoy up a flagging economy.

Homeowners in debt should study these new measures carefully.  Some could find that the help on offer from the government is enough to see them through current difficulties, but inevitably there will be those for whom the situation is too dire or the financial problems too deep.  If you are facing the possibility of losing your home, talk to Property Rescue about their guarantee to buy your property.  Their service could allow you to stay in your home, rescue your credit rating and get through the hard times ahead.  Contact them for an informal chat without any obligation.

Figures released this week show that new mortgage approvals fell in June to a new low.  Successful mortgage applications were down a staggering 23 per cent from May according to statistics released by the British Bankers’ Association (BBA), who say this is the lowest number of mortgages approved in any single month since their records began back in 1997.

You may have a feeling of déjà vu when you hear warnings from the BBA about the state of the housing market.  Their forecast echoes that of the Council of Mortgage Lenders in predicting that this year is likely to see the worst fall in property prices since the early 1990s.  Whilst some argue that this is purely a levelling off of an over-inflated housing sector, the impact it is likely to have on those who have just entered the market is likely to be severe.

Negative equity may become an issue if house prices continue their downward spiral.  This is particularly true for those who have recently taken mortgages of 100% or more against the cost of their home.  Lenders are adopting a much more cautious approach now, but we only have to look a few months back to find a very different attitude. 

Of the mortgages secured in June, only 19% were for buying homes; the remainder were re-mortgages on existing property.  The fact that new buyers are not entering the market will send ripples upwards and outwards to anyone who wants to sell, making the market even more stagnant than it already is. 

Falling prices, negative equity and low mortgage lending all add fuel to the argument that the housing crisis is likely to take some time to resolve.  The more optimistic commentators are talking about the end of 2009 before the situation improves, but others are thinking much further ahead.  For those who need to sell rather than want to sell, this equals bad news.  Property is simply not shifting off the estate agents books, causing some agents to even go out of business.

If you need to sell your house fast there is an avenue by which you can do so.  Property Rescue makes a guaranteed offer for your home and, if you accept that offer, the sale can be tied up within a matter of days or weeks.  The benefits to you are that you have a certain sale, you will not be subject to your buyer pulling out further down the line, you will be able to move on and, perhaps, benefit from falling house prices by becoming a cash buyer.

Property Rescue promises never to push you into action that you don’t want to take, nor to proceed until you have all the information you require.  For more details, contact one of their property experts and start the ball rolling towards that elusive sale.

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.

House prices have now been falling steadily for more than six months, according to statistics published this week.  In April, prices were more than one per cent down, bringing the average UK house price to approximately £178,500. 

There is a mixed reaction amongst home owners to the decline in property prices.  Some are worried that money is being wiped off their assets, especially if they own a buy-to-let property as well as their main residence as this sector has been particularly hard hit in recent months.  But not everyone is as down-hearted.  Many feel that property prices in the UK have been over-inflated for too long and see the current dip as no more than an overdue adjustment that will serve to create a sustainable market place. 

Those who are about to buy their first home find themselves benefiting on the one hand and losing out on the other.  The price drop will mean that there are bargains to be had, but the mortgage shortage is causing heartache on all sides.  Estate agents are reporting that first time buyers are nervous about entering a market in potential decline and are having difficulty raising the mortgage they need at a price they can afford.

At the end of the day, it’s the poor seller that seems to come off worse.  Reports of people who have had their home on the market for more than two years are not uncommon.  Despite these home owners spending time and money on redecoration, landscaping the garden and generally making their property more attractive, a buyer – at least a buyer with a secured mortgage – remains elusive.

Private sales offer a real alternative to people who are facing such a crisis.  When a sale is important (i.e. family or job reasons are behind the move) then action needs to be taken.  Selling privately means that the offer price is the price that is paid – no renegotiation of the sale price further down the line, no estate agents fees, no collapse of the chain, and no mortgage problems with your buyer.  Selling in this way will mean that your home is valued below the market rate, but with house prices continuing to fall, sellers having to lower asking prices, and sales taking months or years to complete, the benefits are becoming more and more attractive.

For information about how to sell your home privately, talk to Property Rescue.  They will give you all the details you need to make an informed decision, without pressure, and will deal with you in complete confidence.  Call for a no obligation chat to see how they can end the misery of not being able to sell your home.

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.