Mortgages

Bumpy Ride For House Prices

Fri, 20 Feb 2009 00:00:00 GMT

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

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

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

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

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

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

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

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

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

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

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

Options for First Time Buyers

Mon, 16 Feb 2009 00:00:00 GMT

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

Variable Loans

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

Right to Own

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

Long Term Fixed Rates

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

100 PLUS Mortgage

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

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

Mortgage - Buy To Let Owners In Trouble

Wed, 14 Jan 2009 00:00:00 GMT

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

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

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

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

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

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

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.

Mortgages remain in short supply

Fri, 14 Nov 2008 00:00:00 GMT

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.

Government Intervention - Too Little Too Late?

Tue, 09 Sep 2008 00:00:00 GMT

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

In brief, the measures include:

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

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

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

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

Mortgage Lending Drops to New Low

Mon, 28 Jul 2008 00:00:00 GMT

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

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

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

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

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

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

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

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.

House prices continue to slide

Thu, 01 May 2008 00:00:00 GMT

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

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

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

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

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

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

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.

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.

Fixed Rates? The Answer?

Fri, 13 Jul 2007 00:00:00 GMT

In a market where interest rates are consistently rising (there have been five rate increases from the Bank of England in the past twelve months) opting for a fixed rate mortgage is an attractive proposition in the battle to control household outgoings.

At present, many lenders are offering fixed rates but they are almost all on a short term basis. Whereas a few years back you could choose to fix your mortgage interest over a period of three, four, five, or even seven years, now the emphasis is very much on the shorter term. The Council of Mortgage Lenders reports that almost 90% of first time buyers opted for a short term fixed rate mortgage and that the average first time buyer now borrows a record 3.37 times their income.

The problem with fixed rates can be that when they come to an end people face a big hike in their mortgage payments because interest rates have risen in the intervening period. Some financial commentators are expecting this to amount to a crisis for cash-strapped families and expect to see a subsequent rise in the number of repossessions taking place. Of course, for the lucky ones whose salary has kept ahead of inflation then there is no problem but for those whose income has not risen, or perhaps has dropped because they have started a family and one partner’s earnings capacity is reduced, the end of the fixed rate period can have dire consequences.

Repossession is one of the most traumatic things that can happen to a family, but it can be avoided if you seek help when problems arise. Even if you are at a late stage in repossession proceedings, Property Rescue will make a guarantee to buy your home, thus avoiding the need to surrender it back to the mortgage lender.

All Property Rescue’s contact is without pressure or obligation and will be done in a very discreet manner. Contact them to discuss your situation and see how they can help.

Mortgage Payments Out of Control?

Fri, 22 Jun 2007 00:00:00 GMT

Bank interest rate rises, mortgages that are high multiples of salary and the end of fixed rate loans can spell financial disaster for some. What are the options if your outgoings exceed your income?

Reduce your repayments
Talk to your mortgage lender about your difficulties. Look at paying interest only for a while to get you over this time of financial stress, or examine the possibility of lengthening your mortgage term.
Keep account of your expenditure
Sounds obvious, but many people don’t know how much they spend each month and what they spend it on. Allocate your money so that necessities like mortgage, council tax and utility bills get paid first and give yourself limits for spending on items like lunches, personal shopping, groceries, etc.
Rent a room
Not an option that’s suitable for everyone but if you have an empty room why not make money from it? There are always people looking for a nicely furnished room, especially if you live near to a busy town, university or business park.
Switch your mortgage
Look for better deals than the one you have at present. Search for fixed rates or ask your current lender whether they can offer you a better rate of interest than currently pay.
Downsize
Perhaps the most obvious solution is to sell up and move to a less expensive property, thus releasing capital and decreasing your monthly outgoings. Property Rescue guarantee to buy your home whatever its condition, and they will make the necessary arrangements within a few days.

Whatever happens, don’t risk a repossession by ignoring your debts. Talk to Property Rescue about your options.

Fixed Rate Mortgages Could End in Tears

Fri, 08 Jun 2007 00:00:00 GMT

The UK’s biggest lender, The Halifax, announced that house prices grew at their slowest pace during May with an increase of just 0.3% from the previous month. The figures for April had shown a growth of 0.9%, so this is a significant drop.

Perhaps the effects of higher interest rates are at last seeping through into the market place, although yesterday’s news that the Bank of England has chosen to keep rates static for now will be welcomed with a sigh of relief by those with costly mortgages.

What is less clear though, is the impact that will be felt later on this year as many fixed rate mortgages come to an end. Two years ago, interest rates were low and loans were on offer for around 3.5 or 3.9%. Some of these fixed rates are due to end soon and the hike in mortgage payments that will result when rates return to today’s levels is bound to leave some homeowners short of cash.

Most people will be able to cut back on expenditure and meet the new repayments but for a minority whose outgoings are already stretched to the limit, the sudden rise in mortgage payments could mean a cash crisis. If you are in a position where you can’t meet your mortgage payments and need to sell up quickly and move on, Property Rescue guarantee to make an offer to buy your home, no matter where it is or what condition it is in. Contact them for more information.

Loans of Six Times Salary

Fri, 20 Apr 2007 00:00:00 GMT

A recent announcement from some of the major mortgage lenders that they are prepared to offer six times salary will surely be copied by the majority of lenders as housing costs become less and less affordable to those with average pay-packets.

Despite the now well-worn prophesy of a housing market slow-down it seems that prices are stuck on an upward trend. The figures show that the recent increase in interest rates has been absorbed by the market with little impact; property prices are, it seems, resilient and have been rising for around seventeen consecutive months. Good news for those already on the property ladder, but as shown by the decline in first time buyers, bad news if you have yet to get a mortgage.

This must be the thinking behind the level of loan on offer now. Only a few years ago six times salary would have been unthinkable, yet today it can be the only way that people can afford to buy a home of their own. The move has been criticised by several charities and organisations dedicated to helping people manage debt. In response, the mortgage companies point out that only in exceptional circumstances will such large multiples of salary be offered and strict criteria must be fulfilled, but the average person in the street must be wondering if this is set to become the norm as the nation continues its love affair with property-buying.

It’s unsurprising that some people find it hard to make ends meet when mortgage payments are so steep. It only takes one factor such as a change in job, a sudden illness, a rise in interest rates, or a family breakdown, to tip the balance from solvency into serious debt problems. For some families, simply the fact that they have been living fractionally beyond their means can be enough, as this is a situation that cannot be sustained indefinitely.

If you are having debt problems or cannot make your mortgage repayments, contact Property Rescue. They will present you with options and a way out of your current crisis. They won’t exert pressure on you to act and everything is done with regard to your family needs and in total confidence.