Recession fears lead to withdrawn mortgages says National Homebuyers
The increasing risk of recession and the financial difficulties that will follow are forcing mortgage lenders to rethink their lending strategies.
[UKPRwire, Mon Mar 03 2008] That is according to Savills Private Finance, which said that lenders are keen to avoid risk at all costs.
It has led to many firms withdrawing their mortgage deals as they are concerned about getting into financial difficulties themselves.
During an appearance on Channel Four's 'News at Noon', Melanie Bien from the firm suggested that things look set to get worse.
"There is less money available to lend to us, lenders are looking more closely at risk and cutting back on the riskier borrowers out there," she explained.
"They have decided that lending above 100 per cent loan-to-value is increasingly risky when house prices aren't carrying on going up; in fact they are flat in a lot of areas and, indeed, falling in some," continued Ms Bien.
Fast property sale expert Julian King adds, "People with mortgage repayment problems need to acty quickly and this problem will not simply go away.
"Mortgage rescue schemes exist to help the homeowner in trouble.
"Sell and Rent Back is an equity release style solution which allows the homeowner 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.