Property Rescue Blog

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.

Figures just released show that house prices fell at a record level during the past year.  From October 2007 prices are down 12.4%, bringing the average house price to around £162,000 and cutting a massive £20,000 off last year’s value.

This is the 11th consecutive month that prices have dropped, with Northern Ireland and East Anglia being particularly hard hit.  The only place that has bucked the trend is the city of Durham, where prices have actually shown a slight increase.

Although home owners may be distressed about the cut in value of their property, in theory the fall should be good news for first time buyers who have previously been unable to get on the housing ladder.  But the downward trend is making such buyers nervous as they wonder how much further prices will fall and, understandably, are showing reluctance to expose themselves to the threat of negative equity.  More importantly, the credit crunch and the crisis in the banking system means that mortgages are hard to get; a factor that looks unlikely to be resolved in the short term.

Commentators are pessimistic about the outlook over the next 12 months, many predicting that property will continue its decline in value.  Some see the fall being halted at the end of 2009 and a gradual increase happening over the following two to three years.  At present, the US economy and the world financial situation is so volatile that any forecasts must surely be taken with a pinch of salt.

Is it impossible therefore to sell your house?  The lack of first time buyers, the instability and nervousness of the market and the wider economic issues all combine to put people off moving house.  There are some, however, that have no choice other than to move, perhaps through work relocation, family reasons or personal debt.  Estate agents are advising that people need to be very realistic in their pricing if their house is to attract the few buyers out there.  They add that sensible vendors will make sure surveys don’t throw up any nasty surprises, and advise that properties need to be presented in the best possible way.

If you need to sell quickly for whatever reason, there is an alternative to the open market.  Selling your home through Property Rescue gives a number of advantages, including a fast secure sale, ‘paid for’ solicitors fees on the sale, no requirement for a Home Information Pack, and a guarantee that Property Rescue will make an offer for your home. 

For information about how to sell property in a volatile market, call Property Rescue today.  Their advice is free and entirely without obligation.

This is a short guide to the process that your lender will have to follow if your house is to be repossessed.  Remember, your lender has an obligation to act fairly as well as to comply with the law.  If you don’t think they’ve done so, consult your Citizens Advice Bureau or a Solicitor, who will help you take the matter further. 

• Arrears
  Lenders can start proceedings against you if you default on two mortgage  repayments but in reality many are reluctant to do this and will work with you  wherever possible to find a solution.  Your lender will write to you chasing  payments, so you should speak to them as soon as you start experiencing  financial difficulties.
• Solicitor’s Action
   If your mortgage repayments remain outstanding for 4 to 6 months the  lender is likely to put the matter into the hands of their solicitors.  You will  receive a letter asking for payment in full of the outstanding amount.  If you  haven’t already made contact with your lender, make contact with their  solicitors – both parties want to see you remain in your home and repay your  debt, even if payments are temporarily lower or the length of the mortgage  has to be extended.  Don’t ignore any communication from your lender’s  solicitor.
• Court Action
  If you cannot pay or cannot reach an agreement to reduce your payments in  line with what you can afford, or if you fail to communicate with your lender or  their solicitor, the lender will start action against you in the County Court. You  will be informed of the date of the hearing, which you should attend after  seeking advice from the CAB or your own solicitor. 
• Court Decisions
  This article does not allow us to go into depth about the variety of options  open to the Court, but they may dismiss the case if payment has been made  in full, or, in certain instances, an adjournment may be sought.  If your home  is to be repossessed an Order for Possession will be made.  Sometimes this  Order is deferred to allow you more time to repay your debt.
• Moving Out
  If the Court has granted an Order for Possession it will have stated a date by  which you should have moved out of the property.  If you are still there after  that date you may be evicted.
• But don’t despair!
  Even once the repossession chain of events has begun you can still avoid it by talking to Property Rescue.  They have helped people in your situation, even up to the very last minute, and guarantee to make an offer for your home.  You can sell to Property Rescue but remain as a tenant or you can decide to move out and clear your debts from the proceeds of your sale.

Don’t bury your head in the sand if repossession is threatened.  It won’t go away and avoiding communication with your lender or their solicitor is likely to make matters worse.  Property Rescue’s advisers are sympathetic to your situation.  They will provide you with all the details you need in complete confidence and entirely without obligation.

The rate of inflation has risen to 4.7%; new unemployment figures released this week show 5.5% of the working population were without a job during the three months ending July 2008; those claiming Job Seekers’ Allowance have increased, the number of redundancies is on the rise, and the world financial markets continue to be jittery. 

As economic gloom deepens, it feels as if we are all at the mercy of the government, world monetary forces and powers far beyond our control.  There is little we can do to control inflation it’s true, but there are a few simple measures that can help stretch the household budget, especially as summer turns to autumn and we switch on the heating:

• The government has announced help – via the energy companies – for  homeowners to insulate their homes.  Your energy supplier will know more  and should be contacting you with details of how you might benefit.
• If you haven’t already shopped around for gas and electricity, now’s the time  to do so.  A surprisingly large amount of money can be saved by switching  provider.  Cost comparison sites are available, such as uSwitch.com. 
• Think about where you shop and what you buy, but remember to take  account of all the factors involved.  If you buy mainly in a cheap supermarket,  but ‘top up’ with luxuries from two others, you’re likely to spend more in petrol  than you save at the till. Use the facilities you already have – like your freezer  – and plan ahead when you’re grocery shopping so that the number of trips  you make is reduced.  Planning and making a list will help you buy only what  you need and avoid throwing out food past its sell by date.
• Don’t dismiss second hand stuff!  If you have growing kids or are expecting a  baby, look out for second hand shops, charity shops and car boot sales,  where new or nearly new clothes and toys can be picked up for just a few  pounds.
• Watch the interest on your credit cards.  If you have a big credit card bill, look  at transferring the balance to a company who offers a balance transfer  deal.  A little surfing on the net could save you a lot of money!
• Use comparison sites to check that you’re getting best possible deals on  insurance for your car, home and contents.  It’s tempting to ignore home  contents insurance when you’re strapped for cash, but if you change your  existing arrangements, you could save a significant sum without having to  relinquish it.

At Property Rescue we hope these tips come in handy.  They’re all simple things that are easy to do but very worthwhile.  Remember, if budgeting becomes impossible and you can no longer afford your mortgage repayments, always talk to your lender.  They will be keen to help you if at all possible.  If you need to sell to avoid repossession or simply to cancel out debt, then contact Property Rescue.  Even in such a dire housing market, they still guarantee to make an offer for your home.

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.

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.

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.

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

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

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

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

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

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.