Interest Rates

Christmas 2008 - A Look Bac

Tue, 23 Dec 2008 00:00:00 GMT

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.

Low, Low, Low!

Mon, 08 Dec 2008 00:00:00 GMT

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.

When will the fall end?

Wed, 19 Nov 2008 00:00:00 GMT

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.

Dramatic Bank Rate Cut

Fri, 07 Nov 2008 00:00:00 GMT

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.

World Interest Rate Drop

Fri, 17 Oct 2008 00:00:00 GMT

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.

Mortgage Arrears Climbing

Fri, 27 Jun 2008 00:00:00 GMT

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.

Biggest Threat in 20 Years

Mon, 23 Jun 2008 00:00:00 GMT

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.

Another Hold On Interest Rates

Fri, 06 Jun 2008 00:00:00 GMT

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.

10p Tax Rate cut looks set to add to debt problems

Thu, 24 Apr 2008 00:00:00 GMT

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.

Moving Home and Cutting Costs

Fri, 11 Apr 2008 00:00:00 GMT

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:

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!
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.
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.
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.
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.
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.

Budget Brief

Thu, 13 Mar 2008 00:00:00 GMT

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.

Interest Rates On Hold

Fri, 09 Nov 2007 00:00:00 GMT

Yesterday the Bank of England chose to leave interest rates unchanged for the fourth consecutive month. The decision came as no surprise, despite the call from leading economists for a reduction in rates to ease the property blues currently gripping the UK’s housing market. It seems that inflation on the High Street is uppermost in the minds of the Bank of England’s decision makers and that those hard-pressed by increased mortgage payments are – at least for the time being – of secondary concern.

Is there any glimmer of light for those whose mortgage payments are spiralling out of control? There is speculation that the Bank will cut interest rates in the near future, but this doubtless depends on how inflation reacts to the most recent rate hold. But things look more bleak on house sales, with lending giant, Halifax, reporting a fall in house prices of 0.5 per cent during October, hot on the heels of a 0.6 fall in September. Its figures also show that 11 per cent fewer mortgages were taken out during the third quarter of the year, compared to the same period in 2006.

For people who need to sell their home because of mortgage arrears or the threat of repossession, this is not good news. In a slowing market selling quickly is unlikely at best. Property Rescue give people an option to sell their home almost immediately, sometimes within as little as 48 hours. This is an extraordinary turnaround when judged against the average of 8 months to sell a home via traditional routes. Speed can really be of the essence in some situations, especially where the build up of arrears on the mortgage – sometimes combined with other consumer loans – mean that there is a possibility of becoming bankrupt and invoking all that that status implies.

Selling a home to Property Rescue does not necessarily mean moving out. Of course, for some people that is exactly what they want to do – clear their debts, get rid of mortgage arrears, buy another property in a cheaper area or downsize, and make a new start. But for others who are committed to their location because of job, school, friends, etc., the option of selling to Property Rescue and remaining in the home as a tenant can be very attractive. This arrangement is fully explained to clients before they sign any paperwork, and full tenancy agreements are provided that give all the rights tenants are entitled to when in rented accommodation.

Give Property Rescue a call to find out more. All calls are in total confidence and without any obligation to proceed.

Struggling To Sell Your Property?

Fri, 02 Nov 2007 00:00:00 GMT

This week figures have been announced that show the first drop in house prices for two years. Is this the start of a real slow down and is the housing market in crisis?

Northern Rock’s recent difficulties have shaken the market considerably, showing what could happen if the sub-prime mortgage collapse in the US continues to have impact on our own lenders. It’s not hard to find doom-mongers amongst the market commentators, predicting that we are about to see the biggest slow down since the ‘90s or even that we’re in for a full blown property price crash.

The International Monetary Fund considers UK property to be over-valued by 40%, which is enough to send shivers run down the spine of UK home owners. Capital Economics, led by an ex chief economist from HSBC, forecasts a 3% fall per year during 2008 and 2009 due to the effects of the global economy and higher interest rates in this country.

Added to this is the effect that Home Information Packs (HIPS) are reportedly having on the market, with some potential sellers being put off from marketing their home until the full effect of HIPS becomes known.

This means that if you are trying to sell your house you’re likely to see a slow down in viewings and may have to drop from your asking price to gain that elusive sale. For some people this is likely to cause real difficulties – losing the ‘dream home’ they really want, not being able to move to another part of the country thereby necessitating separate living arrangements for a period of time, or even taking out a bridging loan to cover the cost of two properties until such time as a sale can be made.

Property Rescue guarantee to buy your home no matter what the market is doing or what the commentators are forecasting. Furthermore, the sale will be carried out in super-fast time, you won’t have to pay legal fees or estate agency fees on the property you sell, you won’t have to worry about HIPS as Property Rescue will take care of that for you, and you’ll be free to move on to your next home.

Give Property Rescue a call to find out more. All calls are in total confidence and there will be no obligation on you to proceed if you then decide to sell your home via traditional routes.

Property Crash Talk On The High Street

Fri, 05 Oct 2007 00:00:00 GMT

There has been so much media speculation this year about a forthcoming UK property crash that you couldn’t be blamed for switching to a different channel every time a commentator comes on the box.

The Bank of England has, to date, failed to respond to pressure to cut rates and decided at its meeting on 4 October to keep interest rates unchanged at 5.75%. For home owners, the rises that have taken place during 2007 have increased their mortgage repayments dramatically – a good reason, say some experts, to look at cutting interest rates before we reach economic meltdown and the market crashes.

But is it just those with high mortgages that are feeling the pressure and will the market crash? Obviously, the higher your loan the more impact the interest rate rises will have had. But what tends to hit the media are stories about first time buyers on very stretched incomes or those who have taken out enormous loans, well out of the reach of most. That leaves a vast gap in the middle consisting of the ‘average’ home-buyer, if there is such a thing. These people have suffered in silence, absorbing the rate increases and making the necessary cut-backs. If there were to be a crash – and the financial analysts are far from agreed as to whether that will happen, in any shape or form – anyone with a high mortgage could be left in a negative equity situation.

Everyone has a breaking point in their budget, a fact that hasn’t escaped the notice of Property Rescue. If you are facing a situation where you are continually building up debt secured against your home, you have arrears on your mortgage repayments, or are simply in an overstretched financial situation, give them a call to discuss the options. Everything is done in complete confidence and there’s no obligation to proceed.

Who's Feeling The Pinch?

Fri, 20 Jul 2007 00:00:00 GMT

There has been much in the media about the effect of interest rate increases on mortgages and, combined with ever inflating house prices, the fact that repossession numbers are expected to increase over the coming months.

Commentators and analysts anticipate a further interest rate rise soon, putting the poor mortgage payer under strain, but it’s clear that not everyone is feeling the pinch. High street spending continues to be buoyant and without any sign of the interest rate rises impacting the shopper, the Bank of England will continue its attempts to keep inflation figures under control.

Perhaps the problem is that people who have mortgages that are a relatively small percentage of the overall value of their home ‘feel’ wealthy because of the high asset value tied up in their property. But for those whose mortgages are high, or who have recently got on to the property ladder, the effect of interest rate rises will be more intense whilst the feeling of sitting on a small fortune in bricks and mortar is non-existent. It’s these people who are, perhaps, most at risk of repossession. Mortgage payments go up, finances become stretched, personal borrowing is at the limit and arrears start to accumulate.

Property Rescue can help you if you are in this situation. They guarantee to buy your home and can complete a sale within a few days, alleviating your stress, sorting out your finances and even allowing you to remain in your home as a tenant if that’s what you choose to do. If you are facing mortgage arrears or the possibility of repossession, contact Property Rescue to see how they can help. All calls are in strict confidence and without any obligation.

Another Interest Rate Rise

Fri, 06 Jul 2007 00:00:00 GMT

This week the Bank of England has yet again raised the base rate by one quarter per cent to 5.75%, the fifth rise in a year. There’s little doubt that when this new rise filters through to mortgages some already stretched home owners will be close to financial breaking point.

The Citizens Advice Bureau is reporting that it is seeing more and more people who are struggling to meet their mortgage repayments. As housing costs have risen and the availability of economical rented properties has declined, an increasing number of people have taken out large mortgages simply because they have no other option if they want a home of their own. Mortgaging yourself up to the limit may seem like the only way to get on to the housing ladder, but when interest rates rise and repayments go up, or fixed rate terms come to an end, the commitment that seemed financially viable when the loan was taken out can become impossible to meet.

Inevitably, this new rate rise will force some to the brink of repossession but with Property Rescue that need not be the inevitable outcome. The people at Property Rescue are used to dealing with home owners who find themselves in financial difficulties and will present options in a clear, non-pressurised way.

For some, moving out of the home might be the only sensible choice and if that’s the case, Property Rescue will guarantee to buy your home in super-fast time no matter what its condition or location. For others, selling your home to Property Rescue and then renting it back can present a more acceptable option – you get to stay where you are, your children are not disrupted in their schooling and your neighbours need never know anything has happened.

Talk to Property Rescue about the ways in which they can help. Burying your head in the sand is never the answer when you’re in financial difficulties. Mortgage arrears won’t go away and, in the long run, you could be making your situation even worse.

Mortgage Rates? Peaked or Still to Rise?

Fri, 15 Jun 2007 00:00:00 GMT

At its last review the Bank of England decided to keep interest rates where they were, but does this mean we are at the top of the rate rise or do we still have some way to go?

Recent rate rises have been small but consistent and financial commentators are in general agreement that more is yet to come. The Council of Mortgage Lenders expects bank rates to be around 6.0% by the end of the year, but it points out that housing costs are not purely dependent on rates of interest. Other factors, such as employment prospects and income also have an effect on how much property costs, and with economic prospects looking positive house prices might just continue their upward trend.

There seems to be some evidence that recent interest rate rises have slowed the market a little, but if rates are to rise further this will have an impact both on those wanting to get on to the housing ladder and those who already have mortgages. People who have close to 100 per cent mortgages, or have benefited from introductory offers or fixed rates will find themselves having to pay a considerable amount more when these offers end. Combined with the effect of the interest rate rises it will undoubtedly push some towards possible bankruptcy.

There are options for those who are in this situation and we’ll be exploring some of these in the next bulletin. But if you face the possibility of having your home repossessed, are in mortgage arrears, or need to sell your home quickly and without fuss, contact Property Rescue. Their specialist advice will help you overcome your financial difficulties and move on. Contact them for more information.

Interest Rates Go Up Again

Fri, 11 May 2007 00:00:00 GMT

The Bank of England has just announced a quarter of one per cent rise in interest rates and the mortgage companies look set to follow suit. Bank rates now stand at 5.5%.

Despite having one of the highest rates of interest amongst the prosperous countries of western Europe, the UK is still beset by worries about controlling inflation. Some analysts are predicting that 2008 will see inflation take off and interest rates will rise even further in an attempt to quash consumer spending. This pessimism was reflected by the predictions in some quarters that the recent rise would be half, rather than a quarter, per cent. Fortunately for borrowers, that prediction proved inaccurate.

For savers higher interest means good news, but for those with mortgages the outlook is more gloomy. Recently mortgage lenders have been prepared to offer borrowers unusually high multiples of their salary and combined with the number of people who choose to lower their repayments by opting for an ‘interest only’ loan, the percentage of people who will be adversely affected by the recent rise is bound to go up.

If you are struggling to meet repayments and have mortgage arrears, contact Property Rescue to discuss the options open to you. Don’t leave it until you are under threat of repossession because by then the situation will be critical. Property Rescue guarantee to make an offer to buy your home, and carry out all consultations in complete confidence.

Stop Eviction

Fri, 11 May 2007 00:00:00 GMT

Last week’s rise in interest rates will soon start to impact on mortgage repayments, especially here in the South East and East Anglia where property prices are high.

Some analysts warn that repossession figures could double this year as people are pushed to the brink of financial crisis by increasing repayments. The threat of yet another rise in the Bank of England’s base rate is looming on the horizon, making the situation even more gloomy for anyone who has a mortgage.

So can anything be done to stop eviction taking place? If you are in arrears with your mortgage and the accumulated debt has become significant, you are at risk of having your home repossessed. Contact Property Rescue as soon as you realise the situation is becoming serious. Try not to leave it until repossession notices have been issued, but even if they have, Property Rescue will still be able to help.

They will make you a guaranteed offer – no matter where your property is or what its condition – and will give you the opportunity to rent back your home if you wish. This means that you will avoid being evicted, you’ll be able to stay where you are, let your children continue in their current school and, if your financial circumstances improve, you can opt to buy back your home at a later date.

Any Interest In The Budget?

Wed, 28 Mar 2007 00:00:00 GMT

Gordon Brown's budget this week had a few surprises in store, not least the reduction of the basic rate of income tax and the abandonment of the 10% rate. Mr Brown was keen to point out that his budget was fiscally neutral (in other words it didn't raise any money, nor did it give any away) but focused on simplification and redistribution of taxes and allowances in a more equitable way. Whether or not you agree with that is, of course, entirely dependent upon your circumstances.

In a country where 70% of us are property owner-occupiers and a good proportion of the remaining 30% aspire to get their feet on the housing ladder, it's unsurprising that interest rate fluctuations are of keen interest to a great many. Mr Brown has made it known that he is keen to see long term fixed interest rates set at the beginning of a mortgage rather than the 2, 3 or 5 year deals common in the market today, but as yet the market is slow to take up his prompt.

The Retail Price Index (RPI) is at its highest level since 1991 and the Bank of England is likely to want to do something to curb rising levels of spend. Even with Mr Brown's 'equitable budget', analysts are predicting that UK interest rates are likely to rise another quarter of one per cent in the next month or two, putting further pressure on home owners.

Property Rescue offers a solution to those struggling to meet repayments on their mortgage or other unsecured loans. If you are facing financial difficulties, talk to Property Rescue to find out how the buy and rent-back option can be the answer to ever-spiralling mortgage payments.