National Homebuyers: 'Borrowers face mortgage woe'


There are fears that many people face financial difficulties as a result of recent moves to remove a number of mortgage deals from the market.


[UKPRwire, Mon Mar 03 2008] It was recently reported that many 125 per cent and 100 per cent mortgages are no longer available, leaving young buyers with little hope of making it onto the property ladder.

Further to this, those who already have these deals are likely to find it very difficult to remortgage.

Savills Private Finance has warned that many borrowers face serious financial difficulties if they have already taken out a large loan.

"When there's double-digit house-price growth, it doesn't matter so much if you take on a relatively high LTV [loan-to-value] because by the time you come to re-mortgage, your LTV will have effectively fallen because you will have more equity in your home," Melanie Bien from Savills Private Finance told Reuters.

"But if you borrow the full amount or more than the value of your home and house prices don't rise, or - even worse - fall, you could have even more negative equity when you come to remortgage. And if fewer lenders will look at this sort of business, you could be in trouble," she continued.

Fast property sale expert Julian King adds, "People facing mortgage problems can rely on a mortgage rescue scheme like Sell and Rent Back.

"Thousands of UK homeowners are opting for the solution which allows the homeowner to sell their property for up to 90 per cent of its market value and rent it back on a secure tenancy agreement.

"This allows people to pay off their mortgage and any debts and remain living in their home. But consumers must be aware of the danger in using smaller, less scrupulous companies".

Mr King is a diretor of National Homebuyers, the UK's leading quick property sale company. He is also a founder of APBA [Approved Property Buyers Association] which is calling for regulation of the quick sale and Sell and Rent Back industries.

Company: National Homebuyers


Contact Name: Jayne Cornford

Contact Email: jayne.cornford@nationalhomebuyers.co.uk

Contact Phone: 08709798118

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