Mortgage approvals down according to National Homebuyers
The latest mortgage lending data makes bad reading for anyone seeking a fast property sale.
[UKPRwire, Fri Feb 01 2008] Figures from the British Bankers' Association (BBA) show that mortgage lending was down in December.
It means that fewer buyers are entering the market and may lead to a surge of people seeking a fast property sale through alternative routes.
According to the BBA, mortgage approvals for house purchase fell from 43,944 in November to just 42,088 in December.
Further to this, approvals fell by 37.8 per cent year-on-year.
Sell your house quickly - Cash for your house
Commenting on the figures, Howard Archer form Global Insight said that there is a real danger of a housing market collapse.
"There is clearly a very real danger that a significantly sharper house price fall could occur this year. A growing risk is that the economy suffers recession, or even extended weak growth, and unemployment rises significantly," he said.
"This would be liable to lead to a marked increase in the number of people having to sell houses for distressed reasons, particularly given the extent to which many households have had to stretch themselves to the limit to buy a house," added Mr Archer.
Cash for homes property expert Julian King adds, "Should a further significant fall in house prices be realised, one has to consider the number of homeowners who will face serious financial hardship.
"Interest rates are significantly high that those coming out of their fixed rate agreements will be dealt a blow.
"Homeowners facing financial difficulty should consider a quick sale of their property. Options like Sell and Rent Back exist to allow the property vendor to remain living in their home".
Mr King is a director of National Homebuyers, the UK's leading quick sale property firm, guaranteeing to make an offer on each property surveyed within days with completion at a timescale to suit the vendor. The company also manages the Sell and Rent Back mortgage rescue scheme.