Increase recorded in repossession numbers
May 13, 2011
It has been reported recently that the number of repossessions has increased as cash-strapped homeowners once again struggle to cope with finances and keep up with repayments. The figures relating to repossessions was released by the Council of Mortgage Lenders, causing concern amongst many officials that people are now struggling again due to the soaring cost of living.
In the three months to the end of March the number of repossessions is said to have increased by around 15 percent. This followed five quarters running consecutively where the number of repossessions had actually declined. In the three months to the end of March over 9,000 properties were repossessed by lenders, which was the first increase since the third quarter of 2009.
According to the Council of Mortgage Lenders the number of repossessions could continue to soar this year, with predictions that 40,000 people or more could end up losing their homes over the course of the year. This is up from 36,300 in 2010 and officials believe that the rise will stem from the difficulties that people are facing with their finances due to frozen or falling income, soaring living costs, government cuts, and rising taxes. It is thought that at present many people are being given more breathing space due to the low base interest rate, but if this increases over the coming months the prediction could increase significantly.
An official from the Council of Mortgage Lenders stated: ‘Looking ahead, the financial position of many households is likely to be stretched for some while, and some will inevitably find themselves in difficulty. Lenders have a range of options to nurse borrowers through temporary problems, but will clearly need to be mindful of the regulator’s concern that too much forbearance may be as bad as too little.’
The pros and cons of a secured loan
April 28, 2011
Whilst some homeowners have seen their equity levels fall over the past few years due to the drop in property prices there are still some homeowners who have a considerable level of equity in their homes, having purchased their properties at a time when they were just a fraction of the price that they are at now.
For these people there is a possibility of being able to borrow money against the equity in their homes, which they can use for one of a number of reasons and purposes. Whilst lending has become more restricted over the past couple of years due to the financial crisis there are some good deals still available for those that are looking for secured loans. There are, however, pros and cons that need to be considered when it comes to these loans, which will determine whether they are suited to your needs.
Pros
- You may find that these loans are more accessible to you because they pose less of a risk to the lender due to the secured nature of the loan
- You can get some very competitive rates of interest with the low base rate
- The borrowing power is greater than with unsecured loans based on your equity levels
- You can choose longer repayment periods than with a secured loan, so you can keep your monthly repayments down
Cons
- The loan is secured against your home, which means that failure to keep up with repayments could result in you losing your home
- If the base rate shoots up you could find the repayments on your loan rising significantly too
- There is no guarantee that you would get a secured loan in the current financial climate
- These loans are only available to homeowners that have some level of equity in your home
It is important to give very important consideration to a secured loan before making any commitment, as it is a very big commitment to make. You need to ensure that you can afford the repayments comfortably, as you will need to be able to cope with any increases in repayments should the interest rate go up. You also need to make sure that you are able to meet the repayments every month so go through your finances with a fine tooth comb before you make your application to ensure that you can afford the loan and will not be risking your home.
Seek help over your mortgage repayments
April 1, 2011
It has been revealed recently that the level of defaults on mortgages has increased again in the first quarter of this year, even though the base rate still stands at just 0.5 percent, which is the lowest level in the history of the Bank of England, which spans over three centuries. Lenders said that the default level was unexpected given the low base rate and warned that if the base rate increases - which many expect it to - there could be a further increase in the level of defaults amongst homeowners that are no longer able to keep on top of their mortgage repayments.
Many people that have variable rate mortgages have become used to having the extra disposable income that has come from the base rate being so low for the past two years, which has resulted in their monthly repayments falling. However, many have started to rely on this spare income in other areas with some even taking on further debt and using this money to make repayments on their additional debts. This is why many have now fallen into difficulties with their budgets despite the fact that they are paying less than they were two years ago.
The level of inflation has soared to more than double the government’s target of 2 percent and many now believe that a rate increase is inevitable over the next few months in order to bring inflation back down. However, this will have a severe impact on homeowners who are already struggling, as it could result in their repayments soaring by hundreds of pounds a month in some cases, which some will not be able to manage given the soaring cost of living.
It is important for those that believe that a rate rise could tip them over the financial edge to seek help as early as possible by speaking to debt experts and charities. There are a number of steps that people could look at to prepare their finances for a possible interest rate increase. This includes:
- - Consolidating their unsecured debts with one lower rate loan so that their monthly debt repayments come down, leaving them more money to cope with a rate increase
- - Switching to a fixed rate mortgage now so that they are not affected when the rates increase
- - Looking at options such as debt management plans if unsecured debts have got out of hand already
Is it wise to borrow against your equity?
March 26, 2011
Over the past decade many people have taken out secured loans, which are loans that were secured against the equity in their homes. Over the latter part of the 1990s for the next decade property prices in the UK soared, which saw the equity levels of homeowners go through the roof. For those that needed to borrow money this provided the perfect platform, as lenders were willing to offer very competitive loans that were secured against the equity. The more equity homeowners had the more they were able to borrow, and many people took full advantage of this.
However, in 2007 this all changed with the onset of the global financial crisis, which resulted in chaos in the financial and property markets and brought property prices crashing down. This sent many homeowners into negative equity and resulted in many losing their homes because they were unable to keep up with repayments on their mortgages and secured loans.
Whilst the value of property has not recovered to the point where it was before the global financial crisis there has been some level of recovery and some people may have seen some equity return to their homes. However, for those that do have equity in their homes is it advisable to think very carefully before taking the plunge and going for a secured loan.
The most important thing to remember is that if you are unable to keep up with repayments on your secured loan you could end up losing your home. The property market is still very turbulent with property prices going up and down, and this is not the most stable environment in which to borrow money that is secured against what is probably your most important and valuable asset.
You need to bear in mind that getting a secured loan is far more difficult now than it was in the past, as lenders are very cautious about offering loans that are secured against an asset in such an unstable environment. It is also important to remember that the government cutbacks and potential job losses are affecting the environment - and the ability of people to make repayments on their borrowing, which is another reason why you need to give careful consideration to taking out this type of high risk loan. You may find that the restrictions that lenders have in place are far more stringent, and whilst the base rate is at rock bottom at the moment lenders may charge higher rates due to the risk of defaults.
Households can make a different to their finances next year
December 16, 2010
For many households Christmas can be the worst time of year financially, with social events, presents, new outfits, and extra food and drink that all needs to be paid for. Whilst this is a very exciting time of year it can be financially draining for many households, and this is why it is advisable for families to have some sort of plan in place to sort out their finances after the expense of Christmas.
Of course, just after Christmas comes the New Year, and this is the perfect time to get your finances sorted so that you can start off on an even footing and enjoy the benefits of having a more streamlined budget throughout the year. Sitting down together just for a few hours after Christmas can help families to look at their finances with fresh eyes and reduce the amount that is being paid out for a more prosperous New Year.
Getting your finances into order as early as possible after Christmas means that you can work out a way to pay off any debt that you may have accrued over the festive season as well as enabling you to do some financial planning for the remainder of the year. This year taking these measures could be especially important this year as the Council of Mortgage Lenders has warned that repossession levels could rise next year, and failure to get finances sorted out could put people at increased risk of losing their homes through repossession.
It is a good idea for all adults in the households to sit together to go through the household finances, as everyone could have some good ideas about where cutbacks could be made. Shaving just a few pounds here and a few pounds there can amount to a significant saving each month, so look at literally everything that comes out of your account to see where you might be able to make savings.
Also, nominate one adult in the household - preferably someone that is pretty good with researching online - to look at alternative plans and providers for things such as utilities, insurance, etc, so see if there are any better deals out there. Switching services such as these could help to reduce outgoings significantly, and switching is very easy these days thanks to the Internet.
It is also worth the heads of the household looking at financial commitments to see whether there is any benefit in consolidating unsecured debts to reduce outgoings, as this can help to cut the amount paid out as well as the amount of creditors that you have to pay.
Homeowners need to get finances in order to cut risks
December 16, 2010
A stark warning has recently been issued to homeowners in the UK - to get their finances and their homes in order to avoid becoming part of the rising number of repossessions predicted for next year. The warning was issued by the firm EuroDebt, which said that repossession levels are set to rise next year, and homeowners that did not take action could find themselves on the receiving end of repossession action.
Officials from the firm said that homeowners need to get their finances and their homes in order to boost their chances of avoiding repossession and other problems as the climate continues to remain in a difficult and challenging state. The warning comes after the Council of Mortgage Lenders predicted that repossession levels would increase next year.
An official from EuroDebt said that losing the home could be the most devastating thing ever for most people, and that often this happened through no fault of their own. He added that many people were already in arrears due to their financial struggles, and that rising unemployment figures could result in the risks being even higher for many homeowners, as this would further impact on their financial situations.
A EuroDebt spokesperson said: “The CML’s annual forecast paints a gloomy picture for homeowners. Losing your home is one of the most devastating things that can happen to an individual - and for many people, this will be through no fault of their own. In 2010, 15% of our clients were already in mortgage arrears when they came to us for help and with unemployment figures rising it seems for many, the worst is yet to come. While levels of arrears and repossessions have been falling helped by low interest rates, 2011 is going to be a very tough year for many households as the spending cuts really take hold, impacting jobs and household income levels. As a consequence, a rise in mortgage arrears and repossessions is predicted.”
Good news for homeowners in relation to property prices
November 29, 2010
Over the past couple of years many homeowners who may have been hoping to see the equity levels in their homes keep rising may have been disappointed after the property bubble burst and house prices came crashing down. However, whilst some homeowners may still be concerned over the prospect of property prices slumping further a recent report has suggested that this will not be the case.
According to the report from The Centre for Economics and Business Research the property market will edge up a little in the coming year, with property prices expected to increase by around 2.2 percent. The low level of increase in property prices is likely to be down to proposed public sector cuts and household incomes, which are still under intense pressure.
However, the future for homeowners looks brighter after next year, with the CEBR claiming that property prices will gain momentum after next year thanks to the rock bottom base interest rate from the Bank of England, which still stands on just 0.5 percent. Other contributory factors are said to be cash injections from the Bank of England, and shortage of properties in the UK.
The CEBR claims that house prices could increase by 16 percent by 2014, which will come as great news for homeowners. However, there are other economists that believe house prices will slide. Howard Archer from Global Insight believes that house prices will fall by 10 percent over the coming year, whilst Capital Economics predicts a fall of 20 percent between now and the end of 2012.
The CEBR said: ‘Quantitative easing is a very powerful medicine and is likely to have a strong impact on the housing market eventually. House prices may not move much during 2011 but they are likely to rise significantly in the following three years on the back of quantitative easing to offset the impact of the fiscal retrenchment.’
Why are secured loans such a risk?
October 29, 2010
In the past taking out a secured loan was a very popular way of getting some much needed cash for some homeowners, and there were many people that had equity in their homes who decided to tap into the unlocked cash in their homes and use it for something that they wanted. With a secured loan homeowners were able to borrow potentially much more than with an unsecured loan and had far longer to repay it, making this an affordable way of borrowing.
These days unsecured loans have changed somewhat in that they are no longer as freely available to homeowners as they were, namely because of the property market and the effects of the global financial crisis. Over the past few years homeowners have seen their property values plunge compared to the level they were at when they reached their peak, and this has seriously affected homeowners’ ability to borrow in this way.
However, there are still some people that have equity in their homes and who might be tempted to take out a large loan secured against their property. This can be a very risky business, especially in the current financial and economic climate where many people are worried about their finances and whether they can keep up with debt repayments.
The threat of job losses is still a very real one for many people, especially since the government announced that hundreds of thousands of jobs would go in the public sector, which could then have a knock on effect on the private sector. Job losses could mean that the borrower may find that they cannot keep up with the repayment on the loan.
The nature of a secured loan means that if the borrower defaults on repayments for whatever reason the lender can take the money that is owed from the value of the home, and this means that taking out a secured loan can place a serious risk on your home, which you could all too easily end up losing.
It is always advisable to think very carefully before taking out a secured loan, and if you are not confident that you can keep up with repayments over the long term you should question whether this is the right solution for your financial needs, as you could lose your home as a result of failure to keep up with repayments.
Having trouble selling your home?
October 7, 2010
Many homeowners recently have experienced disappointment when it comes to selling their property. The property market has had its ups and downs over recent years, since the onset of the global financial crisis, and this has had a real impact on homeowners in many ways, from the value of their properties to their ability to sell their homes.
After the coalition government came into power in May of this year it was not long before the controversial Home Information Packs that had been launched by the former Labour government were scrapped. This led to a surge in the number of homeowners deciding to sell their homes due to the savings they would make, and estate agents reported an increase in the number of properties coming onto the books for sale.
However, many have been disappointed with the outcome, as low demand for property from buyers has left some properties stagnating on the market. For many the only option has been to take their property off the market again, but for those that cannot sell their home there may be other options available.
Some people that decide to sell up do so because they find that their property no longer matches their needs - for instance, it may be too small due to additions to the family. However, a solution to this could be to make home improvements to make the home more suitable rather than selling the home - especially if the current location of the property is well suited.
Another reason why many people decide to sell up is due to financial problems, with some thinking of downsizing in order to save money. However, if this is not an option due to low demand for property it could be an idea for homeowners to look at solutions such as renting out their property, as the demand for rental properties is high at present due to would be buyers struggling to get mortgages to buy their own places.
Those that need to save money could also look at taking in a lodger and renting out just one room in the home, which could enable them to continue living in the current home and saving money each month by bringing in additional income. Some people do consider sale and rent back schemes, but many believe that at present these offer a raw deal as homeowners can often receive far less than the property is worth.
Young homeowners have few DIY skills
October 7, 2010
These days, with the property market still experiencing problems, many homeowners who may have been looking to sell their homes have found that the demand for property has dropped, which has reduced their chances of being able to secure a successful sale.
This has led to many people that may have given up on selling their homes for the moment deciding instead to try and renovate or improve their existing homes. However, with many experiencing financial difficulties in the current financial climate most cannot afford to shell out to have their homes improved by professionals.
One alternative for homeowners that want to make improvements is to do as much as they safely can using DIY. However, a recent survey has shown that younger homeowners today actually lack DIY skills, which reduces the chances of them being able to carry out improvements. Many were not even able to carry out what many would class as the most basic DIY tasks around the home, and would call on parents to help them out.
The survey was carried out by Swinton Insurance which questioned twelve hundred younger property owners all around the country. According to the results of the survey 18 percent of those polled could not put up shelves, and 22 percent were not able to wire a plug. Officials said that often older homeowners could do these basic tasks with ease but the skills had not been passed on to younger homeowners. Around 37 percent of those polled said that they would call on their dads to help them with DIY jobs.
Steve Chelton, insurance development manager at Swinton Insurance, said: “While it isn’t necessary to have great DIY skills, homeowners should know what they are doing before making any home repairs themselves.”
Homeowners no longer need HIPs
May 20, 2010
Just two weeks into the electoral victory the new coalition government has scrapped the controversial Home Information Packs that were brought in by the Labour party back in 2007 and have been causing controversy ever since. Homeowners have been upset by the hundreds of pounds that they have had to shell out on these packs to sell their properties, so the news will be welcomed by those considering selling up in the near future.
Whilst the government has now scrapped the HIPs there is one element of the pack that will remain in place, and this is the EPC or Energy Performance Certificate, which will still need to be provided so that prospective buyers can see what the energy efficiency of the property is and what the potential for improvement might be.
The ConDem coalition has now confirmed that homeowners will now no longer have to provide the full HIP in order to sell their property. This move will save the average homeowner around £250 off the cost of selling their property. Grant Schapps, the new Housing Minister, said that the move showed just how committed the new government was when it came to getting down to business as quickly as possible.
He said that the decision to scrap the HIPs meant that homeowners could focus on getting their properties sold without having to find hundreds of pounds upfront to pay for the HIP.
The Housing Minister said: ‘Today the new Government is ensuring that home information packs are history. This is a great example of how we are determined to get straight down to work and cut pointless red tape which is strangling the market. By suspending home information packs today, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront. We are committed to greener housing so from now on all that will be required will be a simple energy performance certificate.’
Pressure off for homeowners as repossession levels fall
May 13, 2010
The release of recent figures has indicated that the pressure for homeowners in the UK may have eased off, with data showing that the number of repossessions in the UK fell by 7.5 percent in the first quarter of the year. Over the past couple of years home repossession levels have spiralled out of control as a result of the credit crunch and the recession.
In the final quarter of last year the number of repossessions was reported to be 10,600. However, in the first three months of 2010 this number fell to 9,800. In the first quarter of 2009 the figure was much higher, coming in at 13,200 as homeowners struggled to keep up with their mortgage repayments in the difficult financial climate.
The figures have been released by the Council of Mortgage Lenders, and although the figures are encouraging and show signs of improvement officials from the CML have warned that many homeowners are still vulnerable and could fall victim to repossession. They added that arrears levels were also down, but that this should not make people complacent.
The CML added that as long as there are no more economic problems it might be looking at reducing its prediction of 53,000 repossession over the course of this year, although any revisions will not be made until the summer. It is thought that the main driver behind the lower levels of repossession is the rock bottom base rate, which still stands at 0.5 percent.
The CML stated: “We hope and expect to be able to revise down our 53,000 forecast for repossessions in 2010, but we are acutely conscious of the beneficial influence that low interest rates and the package of support have played so far.”
Many older homeowners using equity to help kids
April 17, 2010
Over the past couple of years many people have found it difficult to get finance of any sorts, from personal loans and credit cards to mortgages, and it appears that the situation is taking its toll on the nation’s elderly, with an increasing number of grandparents being asked for financial help by their grown up children.
According to a recent report a growing number of older homeowners have been taking money that is tied up in their homes in the form of equity so that they can provide more financial support to their grown up children or to their grandchildren.
Research has shown that many adults who now have their own kids are finding it difficult to cope financially without turning to their own parents, and in older to help their kids and grandkids many older homeowners are taking money from the equity in their homes. By using equity release to get this money older homeowners have been described as using their homes like cash machines.
Retired homeowners in the UK took out around £217 from the equity in their homes between January and March of this year, according to figures that were released recently. The average amount that was taken out was nearly £44,000, and the amounts being taken were up by around one fifth compared to the same period last year.
However, there are concerns about homeowners doing this, especially in cases where they do not tell their loved ones. In many cases the children or grandchildren of elderly homeowners think that they will inherit the property upon their death, when in actual fact it ends up having to be sold because an equity release was taken out on it.
One grandparent that released money from her equity said: ‘It’s so difficult for young people now. When I got married at 18, my husband and I were able to get a decent house for £2,500 even though he was only making £12 a week.’
Homeowners can sell their home on the cheap with supermarket
April 5, 2010
Over recent years supermarkets have branched out into all sorts of different areas, and these days you can get much more from the main supermarkets than just groceries and households goods, including a range of financial products. Read more
Property asking prices on the increase
March 24, 2010
The property market has been through a turbulent time for the past couple of years, and homeowners have seen tens of thousands of pounds wiped off the value of their homes in some cases. However, over recent months property prices have been gathering pace and the property market has seen a number of signs of improvement, swaying once again towards the seller rather than the buyer. Read more
No change in interest rates for January
January 27, 2010
There has been no further change in interest rates for the month of January. An announcement was made by the Bank of England following the Monetary Policy Committee meeting for January, where it was confirmed that the base rate was to remain at 0.5 percent, where it has been since March 2009. The current base rate is at its lowest level in the central bank’s three hundred and fifteen year history. Read more
Lower interest rates helping homeowners
January 23, 2010
Recently released figures have shown that the lower interest rates that have been in play for the past nine months are helping many homeowners to cope better in terms of their finances. It appears that some homeowners are up to £200 a month better off as a result of the base interest rate being at just 0.5 percent, where it has been for the past nine months. Read more
Advice offered to homeowners regarding making money from their homes
December 13, 2009
With the value of property in the UK having plunged over the past couple of years since the onset of the global credit crunch many people who were convinced that they could rely on the equity in their properties were shocked to find that their equity levels suddenly melted away. Read more
Right Move report a return to peak for London house prices
November 11, 2009
According to recently released figures property prices in London have managed to claw their way back to the level that they were at when they reached their peak back in 2007. Read more
More price rises reported by surveyors
October 14, 2009
It has been reported that a rising number of surveyors have been reporting property price increases, further fuelling speculation that the property market may have bottomed out and that prices are now on the up. Read more
More people looking to move house
October 2, 2009
Officials from a well known financial website have reported that consumer confidence in the mortgage and property markets seems to be growing, as it has seen a significant increase in the number of potential buyers that are enquiring about getting a mortgage. Read more
Two thirds of equity release advisors not up to scratch
August 17, 2009
It has been claimed that around two thirds of equity release financial advisors are not up to scratch, and are letting down the many pensioners that are turning to them for advice in the current climate. Read more
Repossession levels may not be as high as predicted
July 16, 2009
The Council of Mortgage Lenders has stated recently that the level of repossessions likely to go ahead over the course of this year may not be as bad as originally estimated, and as such the agency has revised its original prediction over the number of repossessions that will take place over 2009. Read more
Many homeowners could face repossession over the summer
July 13, 2009
Officials from the housing charity Shelter have recently expressed concerns that a high number of homeowners in the UK who are saddled with high risk sub-prime mortgage loans could be facing repossession action over the course of this summer. Read more
Homeowners turned landlords feel the financial pinch
July 7, 2009
Over the past year or two, since the downturn of the housing market and the problems that have hit the mortgage market, many people that were hoping to sell their homes have found that they just cannot find a buyer that is willing to pay the right price, and in some cases cannot find a buyer at all. Read more
Homeowners could be in for nasty mortgage shock over the next year
July 5, 2009
It has been claimed that many homeowners in the UK may be in for a nasty mortgage shock over the next year, as tighter mortgage lending regulations result in many being able to refinance to similar deals when their existing mortgage deal comes to an end. Read more
Broker and lender optimistic about housing market
June 18, 2009
A major High Street lender and a well known mortgage broker have both made optimistic predictions about the housing market recently, predicting that by the end of this year house prices could start to increase again. Read more
28% fall from peak to trough for house prices
June 10, 2009
Earlier this month figures were released that showed there would be a fall of 28 percent in house prices from the time at which they peaked in October of 2007 to the time at which the property downturn comes to an end. Read more
Fees hiked by Land Registry
May 11, 2009
In another blow for consumers hoping that affordability will be increased when it comes to purchasing a home, the Land Registry has recently announced that it is increasing its fees by nearly one third with effect from July. Read more
Speculation over mortgage support scheme rises
April 8, 2009
According to a recent report there is rising speculation over a proposed government mortgage support scheme, with uncertainty over which lenders are prepared to support the scheme and when the scheme will actually go ahead. Read more
More money wiped off average house price in February
April 4, 2009
Recently released figures from the Halifax have indicated that yet more money was wiped off the average house price in February. Read more
Another fall for house prices in February
March 24, 2009
Britain’s largest building society, the Nationwide, has recently reported that house prices in the UK took yet another battering in February, with property prices reported to have fallen by around 1.8 percent. Read more
Will interest rates drop to 0%?
March 18, 2009
Since October of last year the UK has seen the base interest rate plummet, and it has fallen from 5 percent in October to just 1 percent following the February Monetary Policy Committee meeting, following a series of base rate cuts over a number of months. Read more
Equity release sector slumped last year
March 9, 2009
According to recent reports the Northern Rock crash from last year resulted in the equity release sector in the UK taking a huge knock last year, with the take up of equity release slumping. Read more
UK base rate hits another record low
March 2, 2009
Following the January Monetary Policy Committee meeting the base interest rate in the UK was cut to its lowest level in the history of the Bank of England, falling to just 1.5 percent.
However, following the latest MPC meeting in February the base rate has been cut yet again, dropping to just 1 percent, and sending it plunging to a fresh record low. It is now at its lowest in the history of the central bank, which spans over three hundred years. Read more
Struggling homeowners to be helped by government
February 28, 2009
According to a recent report the government is to offer help to struggling homeowners who have properties worth up to £400,000 in value. Read more
Improvements made to state help for homeowners
February 4, 2009
According to recent reports a number of improvements have been made with regards to state help that is made available to homeowners that are unable to pay their mortgages after losing their jobs. Read more
September was a bad month for estate agents
February 2, 2009
A recent report has shown that September of last year was the worse month ever for the estate agency industry, with many estate agents failing to sell even one property over that month, as the housing slump and mortgage meltdown continued to cause turmoil. Read more
Property prices could fall by 35 percent before they rise again
January 25, 2009
A leading economist has warned that house prices in the UK could be set to fall by as much as 35 percent in total before they start to go back up again. The warning comes from George Buckley, chief UK economist of Deutsche Bank. Read more
Reports that property prices may pick up next year
January 23, 2009
Recently an industry official predicted that house prices would have to continue falling up to an overall 35 percent before starting to recover again. Read more
House prices set to continue falling
January 19, 2009
Recent reports have suggested that house prices in the UK are going to continue falling with one industry group predicting that there will be a further 10 percent fall in house prices over the coming year. Read more
One in ten struggling to pay their mortgage
January 14, 2009
Recent reports have suggested that around 10 percent of homeowners are struggling to make repayments on their mortgages. Industry officials have stated that one in ten homeowners is finding it difficult to make mortgage repayments. The data comes after a survey was carried out into unemployment figures for couth east Essex. This showed that more than seven thousand people in the area were unemployed and were now claiming benefits. Read more
Homelessness could be increased through struggles with mortgage repayments
January 12, 2009
According to a recent report the number of people that will find themselves struggling to make their mortgage repayments next year could lead to a rise in the number of people becoming homeless. The Council of Mortgage Lenders has already predicted that repossession levels could rise to 75,000 in 2009, and whilst the government is trying to take action to reduce the number of people being repossessed it is likely that the number of homeless people may soar over the course of the year. Read more
New buyers could benefit from slashed auction prices on property
January 8, 2009
With the housing market experiencing volatile conditions and mortgages becoming increasingly difficult to get, many new buyers have found that when it comes to purchasing a property they have had to hold off because of affordability problems or simply because of the risk of property prices falling further after they have purchased the property that they want. However, some people could find that they are able to get their hands on a bargain property by going to auction, where they could end up paying far less than they imagined. Read more
Increase sales resulting from falling house prices
January 6, 2009
Over the past few months property sales levels in the UK have been plummeting, with tighter credit conditions and a range of other factors resulting in fewer and fewer people purchasing property. With property prices falling many people have been nervous to take the plunge and purchase a property in case house prices continue to fall leaving them quickly facing negative equity. Read more
Is there good news on the horizon with regards to property sales levels?
December 29, 2008
Things have been looking very bleak in terms of property sales in the UK over recent months, and the level of property sales in the UK has gone through the floor for a number of reasons. In fact, just weeks ago the average number of property sales per estate agent per week had dropped to below one, and many homeowners trying to sell their homes were finding themselves experiencing real problems in terms of getting their property sold within a reasonable time, it at all! Read more
Government moves on mortgage lending and repossessions
December 29, 2008
Following the pre-budget report, it has been announced that the government is to set up a new review panel that will monitor lending to businesses and consumers. The announcement came from the Chancellors, Alistair Darling, shortly after a report from Sir James Cosby, who said that urgent government intervention was needed to stop the mortgage market from shrinking further in 2009. Read more
House price falls slow in pace
December 26, 2008
Over the past year house prices have been falling month on month in the UK, with average house prices said to have fallen by close to 15% recently compared to the same period last year. However, although house prices are still falling, one major lender claims that the fall have started to slow in pace, with November having see a house price fall of just 0.4 percent, taking the annual rate of decline compared to the same time last year to around 13.9 percent. Read more
Drop in property prices leads to increased sales
December 22, 2008
According to recent reports there has been a drop in the amount that many homeowners are asking for their properties, and this has led to an increase in property sales. With property sales having slumped to an average of less than one sale per week per estate agent, the increase in sales is much needed. Officials have said that sellers are now becoming more realistic with regards to their asking prices, and this has helped to boost sales in what has become a very challenging housing market. Read more
Household spending goes up to £459 per week
December 21, 2008
According to official figures released by the Office for National Statistics, the average household in the UK is now shelling out £459 per week to fund household costs. The data from the Family Spending Survey showed that the costs associated with mortgages and energy costs have rocketed over the past five years. In the past five years the average monthly mortgage payment has gone up by around £16 per household. This equates to an increase of over £830 a year for each household. Read more
Property website reports loss of three hundred estate agents a month
December 1, 2008
The property website Right Move has recently reported that each month around three hundred struggling estate agents are quitting the service, as the housing market continued to decline and the housing slump affects the estate agency business dramatically. With many estate agents struggling to weather the effects of the housing slump, many are unable to afford services such as these. Read more
125 families a day hit by repossession
November 27, 2008
According to figures that were recently released around 125 families a day across the UK have been getting hit by repossession, as many households continue to struggle to keep up with mortgage repayments on their homes. In the three months to September 30th the number of repossessions increased to 11,300, which reflected a rise of 12 percent. The data comes from the Council of Mortgage Lenders. Read more
Will the base rate cut really help borrowers?
November 24, 2008
In the past the rules behind interest rates charged by mortgage lenders seemed to be pretty simple - when the Bank of England put up the base rate then mortgage lenders would put up their borrowing rates by the same amount, and when the Bank of England cut the base rate then lenders would cut their borrowing rates by that amount. Simple and straightforward. Read more
Possible £40,000 fall in house prices by end of 2009
November 19, 2008
According to recent figures house prices could fall by as much as £40,000 by the end of 2009. The figures indicated that compared to the peak of last October the average house price could fall by around 20% by the end of December next year, and this would mean that property prices were back down to the same level as 2004. The data comes from the Centre for Economics and Business Research (CEBR), which has predicted that it will take until 2010 for the housing market to show any signs of stability. Read more
Firmer regulation needed over sale and rent back schemes
November 15, 2008
According to industry officials firmer regulations is needed when it comes to sale and rent back schemes, which have seen take-up increase over the past year as an increasing number of homeowners have struggled to keep up with repayments on their homes. These schemes work by purchasing the property from the homeowner and then renting it back to them so that they do not have to move but can stop worrying about the mortgage, paying rent on the property instead. Read more
Homeowners not cashing in on their equity
November 12, 2008
According to recent figures released from the Bank of England the number of homeowners in the UK that are now cashing in on their equity by borrowing against it has dropped. It is thought that the number of people borrowing against their equity dropped between April and June of this year, according to a recent report. Read more
Future of house prices looks bleak
October 30, 2008
Over the past year the housing market in the UK has fallen into a slump, with house prices having fallen month on month, leaving them considerably lower than they were at their peak this time last year. However, the bad news is not over for homeowners, with industry officials warning that property values are set to continue falling. In fact, one firm of economists has warned that by this time next year property prices could have dropped by up to 35%. Read more
The pressure is on for the Bank of England
October 23, 2008
Further pressure is being piled on the Bank of England to cut the interest rate, as officials points out that Britain could otherwise face the worst effects of recession. With the Monetary Policy Committee meeting due soon, the governor of the central bank and other senior officials are feeling the heat, as industry groups and professionals warn them to put inflation worries on the back burner and focus on the state of the economy and the rising risk of a full blown recession. Read more
Mixed reactions on housing proposals from government
October 19, 2008
The government in the UK has made a number of new proposals recently to try and kick start the slow housing market, and amongst the actions taken by the government are a suspension in stamp duty for properties up to £175,000, and also the provision of loans for first time buyers looking to purchase new build properties. Industry groups and officials have offered mixed reactions to these moves, some of which can be seen below. Read more
Is it time to scrap HIPs?
October 17, 2008
There is no doubt that when legislation relating to Home Information Packs was brought in the year before last there was a great deal of controversy and dissatisfaction amongst both homeowners and various industry groups, such as estate agents. Officials from the Labour government have been insisting that these packs are a good idea, and that they will make the house selling process far faster. However, whilst Labour officials continue to defend these HIPs officials from other parties are insistent that they need to be scrapped. Read more