Rent Back – Fixed Rate Risk

Unfortunately, many homeowners took out mortgages during the property boom which are now coming to an end and causing debt problems. Large numbers of homeowners will use a rent back scheme to release equity.

There are thousands of homeowners facing a financial nightmare as they come off fixed rate mortgages and struggle to find a mortgage that they can afford in the current economic climate. This inability to find a suitable mortgage is plunging more and more homeowners into unmanageable debt and many will seek to utilise rent back schemes in the second half of 2008 as they aim to quickly release the equity which is tied up in their home but are keen to avoid the disruption that comes from having to find a new home. A rent back scheme releases equity from the home in a timeframe to suit the homeowner and boasts the additional benefits of allowing the continued renting of the property after the sale has been completed and prevents any of the pitfalls of the open property market such as a broken chain.

Rent Back – Untenable Finances

According to research from the Citizen’s Advice Bureau, those homeowners coming off fixed rate mortgages in the second half of 2008 will need to find considerable extra income or face the very real threat of having their home repossessed. Unfortunately, however, large numbers of homeowners are discovering that this simply isn’t financially viable and they are falling deeper and deeper into debt. In order to address the situation, the number of homeowners seeking out rent back schemes is set to soar as this may well be the ideal solution to their financial situation. A rent back scheme not only instantly stops repossession proceedings, it also rapidly releases the equity which is tied up in the home, which can be used to tackle debt management problems and it also ensures that disruption is kept to a minimum by allowing the homeowner to continue to rent the property once the sale has been completed.

Rent Back – Homes at Risk

As the impact of the credit crunch on homeowners, particularly those coming off fixed rate mortgages, becomes ever more profound, the numbers looking to release the equity from their homes to stave off repossession is set to increase. Unfortunately, however, this has come more difficult given the stagnating nature of the housing market but many are now realising that a rent back scheme might well be the ideal resolution for their situation. The seriousness of the situation is summed up by Julie Waters of the Citizen’s Advice Bureau, who states, “We foresee that clients who own their properties and have priority or secondary debts will be facing particularly difficult times either through repossession, creditors instigating bankruptcy proceedings or seeking orders for sale or charging orders.”

Looking for a Sell House, Rent Back Scheme? Speak to Property Rescue

If you need help to get a sell rent back scheme for your property, contact us at Property Rescue. We’re committed to helping you, whatever your circumstances. Property Rescue has helped hundreds of homeowners, rescuing them from desperate situations. With Property Rescue you can rent back with confidence.

Call freephone 0800 1313 999 for help today.

>> Return to Rent Back Articles