Sub-prime mortgages dieing out says National Homebuyers
Many homeowners may seek a fast property sale as new figures show that sub-prime mortgage lending in the UK is drying up.
[UKPRwire, Thu Mar 20 2008] It comes on the back of the global credit crunch and may cause concern for many homeowners.
With fewer deals available, there will be fewer new buyers entering the market, leading to decreased demand and, inevitably, reduced prices.
As a result, many people may seek a fast property sale in order to get as much money for their properties as possible before prices fall further.
Julia Harris from Moneyfacts said: "Over the last week we have seen a host of sub-prime lenders including Amber Homeloans, Scarborough Specialist Mortgages and SALT cease new lending of sub-prime mortgages.
"Lenders are finding it increasingly difficult to find funding for sub-prime mortgages.
"This is yet another way of preventing people getting on the housing ladder and in some cases even pushing them off it," she continued.
Fast property sale expert Julian King adds, "The lack of available potential buyers for properties will be with us for sometime. As property prices reach their natural value, homeowners who want a quick property sale will find themselves unable to sell their property to their deadline.
"Homesellers need to seek alternative sale options to the traditional estate agency route".
Mr King is a director of National Homebuyers, the UK's leading fast property buyers. The company offers a series of solutions for vendors who want a quick sale and Sell and Rent back solutions for those who wish to remain living in their homes.
Last month the global credit crunch led to complete removal of 125 per cent mortgages from the UK market.