Property Rescue Blog

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.

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 simplest terms, BMV is an abbreviation for Below Market Value property. What this means is that the prospective buyers pay less than the expected market value for a property. There is a section of the housing market that specialises in this area and they usually offer a sell and rent back option (at market rent) to the seller, often with a fixed term lease.  

Companies specialising in BMV property usually offer a minimum of 80% below expected retail value. Valuations are normally free and are estimated by examining the local market trends.

There are a number of reasons that people decide to sell their property at below market value. BMV sales are generally paid in cash and offer an expedient sale. Currently, the general turnaround for a house sale in the UK is 7 months and BMV sales can be completed in 24 hours. Also, companies that specialise in this area tend to deal with all aspects of the sale, including dealing with the mortgage lenders.

The rent and sale option is often utilised by people in financial difficulty, as a way of consolidating debt. The main reason for this being that it offers them the security of their own home whilst repairing their financial situation. Repossession orders have increased year on year as Britain attempts to deal with the spiralling cost of living. The advantage of a BMV sale is that it can stop a repossession order and, probably more importantly in the current credit climate, prevents the seller from acquiring a bad credit rating. The CML has recently highlighted that lenders are finding the credit crunch severely limits their members ability to advance the money for a mortgage. A bad credit rating in the current climate may prevent home buyers from achieving a reasonable interest rate.

In simple terms, Sell and Rent back (or Rent and Sale) is when you sell your house and then rent it back at a rental price affordable to you. Typically the reasons people choose to sell and rent back are for equity release, debt consolidation or motivated selling. In most cases, sell and rent back schemes will have a buy back option for the tenant, at the rate of the new mortgage.

The ability to sell your house and rent it back is a viable alternative to equity release schemes, especially if there is a need to generate cash quickly. There may be a case where you are looking to start a new business and need immediate funds as start up capital

The economic slowdown has forced many homeowners into defaulting on their mortgage and has put them at risk of repossession. IVA’s have increased year on year and debt consolidation companies has become an ever present part of the UK’s economic landscape. The advantage of selling and renting your house back, is that you are guaranteed a quick sale and the security of a roof over your head whilst attempting to deal with your financial situation.

For example, if you were looking to sell your property and emigrate overseas, an expedient sale not only releases the required funds, it also gives you the option to rent back for a certain period whilst searching for your new home. The same applies if you are looking to start a new business overseas, also providing a certain amount of flexibility if you decide eventually that you would like to emigrate as well.

Sell and Rent Back in London has been steadily increasing due to its position as the focal point of the economic market. Comparatively speaking, house prices and the cost of living have grown exponentially in London. Debt management is now of growing concern to people in the capital.

The vast majority of Sell and Rent Back companies are based online. The advent of the Internet and World Wide Web have caused many people to ask, “Should I sell my house online?.” The advantages being easy accessibility to the company and a vast array of choice. However it is important to be happy with the company you choose. The need to sell a house quickly often leads to bad choices. Do your research and look for a company that will sell your house online professionally and takes your personal situation into consideration.

As we approach the end of the year it is a good time to look back at the property market during 2007 and look at the current situation.

The year began with what had become a familiar trend of rising prices, which, it seemed, would go on for ever.  But it was not long before some commentators and financial experts were warning of potential slowdown or even disaster in the months and years ahead.  The credit crunch in the US sent shivers through the economy, the effects of which are still with us today and likely to continue for a while yet, whilst bank interest rates rose and mortgages followed suit.  By mid year we were seeing a general slow down in property prices all across the country and in the final quarter of the year prices have begun to fall.

November saw a 1.1% drop according to the Halifax – the 3rd consecutive month of falling property prices.  The Bank of England lowered its interest rate by one quarter of a per cent at its meeting in early December but the effects of this rate cut seem to be limited.  Lending between banks has become very expensive and the Northern Rock crisis has done nothing to bring confidence back to the markets.

As if this weren’t enough, some commentators are predicting that the change in capital gains tax rules, due to come into force next April, will bring a lot of ‘buy to let’ properties back on to the market as investors seek to capitalise on their gains.  The net result of this could be a ‘buyers’ market where the number of homes for sale pushes prices down.  If this prediction is realised, those who took out mortgages during 2007 could find themselves in negative equity situations.

If you need to sell your home fast but can’t find a buyer you might, justifiably, be concerned about what will happen to the market in the months ahead.  For a guaranteed quick sale speak to Property Rescue, who will make an offer on your home within a matter of days, or in some cases just hours.  The price they offer will be a little below market value but it will include the legal fees on your sale, and will avoid the need to prepare a Home Information Pack, which could save you hundreds of pounds.

Property Rescue will be happy to talk to you in complete confidence and make a ‘no obligation’ offer on your property.  If you then decide not to proceed that will be the end of the matter – no salesmen will call, nor will you be pestered by phone calls.  Talk to Property Rescue and sell your property…fast!

The Bank of England has just cut the interest rate by one quarter of a per cent to 5.5%, but will it be enough to re-generate a housing market with a severe attack of the blues?

The rate cut was no surprise as pressure on the Bank of England was coming from all directions: the housing market as well as industry and business leaders.  The strong pound and fears about the level of borrowing are perceived as a threat to the future of the economy.  Fears over the credit crisis in the States further compounds the situation and surveys are reporting a generalised gloom from both directors and the high street.

Furthermore, sales of houses are slowing and in some areas prices are actually falling – unheard of even a few months ago.  A drive around any town is likely to show more ‘for sale’ boards than those that proclaim boldly that they have been sold.

If you plan to sell your home in this climate it’s not going to be easy.  Making your house as attractive as possible to purchasers is good advice, but it’s not everyone who feels confident in doing up their property to the extent recommended by popular TV shows.  In any case, for those whose home is in a hard to sell area no amount of off-white paint will deflect from the negatives of its location.

If your home is in good condition with excellent decoration, in a nice residential area and reasonably priced, then you will probably still be able to sell – if you’re prepared for the wait.  But if you can’t wait for whatever reason, or you find that your home simply isn’t shifting, give Property Rescue a call.  They guarantee to buy your home for cash no matter where it is or how long it’s already been on the market.   Once you’ve agreed the sale price, they take care of everything for you and conclude the deal within a few days; far quicker than you could ever do by selling via the traditional route. 

Give Property Rescue a call and find a way out of the ‘hard to sell’ trap.  Selling now could mean the difference between keeping or losing that dream home you want to buy.

Property Rescue will explain everything to you in clear detail and take care of the paperwork and legal necessities.  If at any time you decide not to proceed, you are free to walk away without obligation.

The government started to roll out Home Information Packs, or HIPS, earlier this year and from 14 December the HIP will be compulsory for every home owner who wants to sell, regardless of the size of property or number of bedrooms.

The idea behind HIPS is that prospective buyers will have a degree of information at their finger-tips before they make an offer, but the scheme has been criticised heavily by many in the industry as being expensive, cumbersome and responsible for slowing down an already depressed market.  There is also concern that various aspects of the information provided in HIPS, such as local searches, will be out of date by the time the property is actually sold and will, therefore, have to be re-done by the purchaser’s solicitor.  Mortgage lenders and lawyers are unlikely to place reliance on information that might be several months or even close on a year old.

Nevertheless, the law is the law and sellers will have no choice but to comply with the regulations.  In brief, the Home Information Pack will contain the following:

• An energy performance certificate that will rate your property from A to G
• A statement of the terms of the sale
• Copies of the title deeds and any planning and building regulations consents
• Local authority searches, plus those relating to drainage and water

It is difficult to give an accurate indication of what a HIP will cost as they are still in their infancy and therefore subject to market forces.  Realistically however, home owners should expect to pay between £250 and £700 for a HIP to be prepared on their behalf.  One of the main problems seems to be finding an assessor to rate the property’s energy efficiency, as to date few assessors have been accredited in this relatively new specialism. 

Selling your home through Property Rescue will avoid the need to prepare HIPS as the sale will be classified as private.  This could save you up to £700 as well as avoid the necessity of getting solicitors involved before you even put your house up for sale. 
 
Property Rescue quote a price for your home that is the price you will receive; no deductions are made other than repayment of your outstanding mortgage or any loans you may have on your property.  There are no hidden fees, no legal fees on the sale, and no HIPS. 

Give Property Rescue a call to find out more.  They explain everything to you in clear detail and take care of the paperwork and legal necessities.  If at any time you decide not to proceed, you are free to walk away without any obligation.