With interest rates and mortgage lenders deposits going in the opposite direction (upwards) what can someone with mortgage problems do to stem the tide. If you took out a 100% mortgage in the last 3 – 5 years then statistically your property is at risk as house prices sales hit a new 30 year low.

Over 23,000 homes have a 100% mortgage secured against their property and as more and more home owners feel the pinch, straddle negative equity or fall behind on their mortgage payments. The burning question is what can a home owner do?

In the first instance, speak with your lender, although they do not like to talk about debt counselling a few lenders have set up departments to deal with the ever-increasing numbers of homeowners falling behind on their mortgage payments.

Secondly take a trip over to your local citizen advice bureau, not only are they helpful they will be able to guide you through the maze of debt negotiations you may have to endure.

Whatever you do, do not put off today what will not keep until tomorrow. Falling deeper and deeper in arrears with your mortgage lender only leads to one foregone conclusion. Repossession is the dreaded word, which is muted in most news articles when reporting on the UK housing market.

Mortgage lenders say they do not want to throw families out onto the street but repossession has risen dramatically since the credit crunch began. Neither you nor I are mortgage lending experts, however if repossessions have increased by say 40% does that not tell its own story.

Some homeowners’ have preferred to look elsewhere and find their own solution. Cash property buyers do exactly what it says on the tin. They buy property for cash! In short this means for a trade price your property can be sold, off your hands, debts cleared and a new start in as little as 3 weeks.

There are mixed stories about how you should approach such individuals or companies, as not all are the same. I presume the same could be said of mortgage lenders and how flexible they are when payments begin to slip.

When seeking a cash buyer spend a bit of time detailing all your debts and outstanding payments. Try to be as honest about your situation, so they can provide you with the best solution for your needs.

In the event you are unhappy with the offer they have made, say so as you are under no obligation to accept. However, bear in mind a cash price equates to discounts! Just like buying a car, paying with cash price means a suitable discount will be required.

Whilst cash property buyers does not favour everyone there are many reputable individuals and companies able to solve your debt problems in as little as 3 weeks. This has attracted many to look at cash property buyers as a solution to their ongoing troubles.

The key decision a homeowner makes when contacting a cash property buyer is, can I sell my property within 3, 6, 9 or 12 months with a guaranteed sale. This is a question only you can answer and the risk of mounting payments is the gamble you take.  With sales agreed in as little as 5 days, cash property buyers are an option worth considering.

For a no obligation quote click ‘quick sale required’

Your options of a successful sale reduce each month, as its a known fact the longer a property is on an estate agents books, the less motivated they are in marketing and selling.

Increasing numbers of sellers are finding it more difficult to find a serious buyer, ready to complete on a property purchase! In an article at the beginning of the year by the timesonline they highlight the property slump maybe the worst since the 1990s.

Extract begins Gráinne Gilmore and Gary Duncan @ timesonline

Falls in house prices across the country may now be at their most severe since the property slump of the early Nineties, according to bleak figures today suggesting that Britain’s housing downturn is gathering pace.

A highly influential barometer of housing market conditions reports this morning that 49.1 per cent more surveyors found that house prices fell last month than saw them rise.

The gloomy result is the worst since November 1992 in the closely watched poll carried out by the Royal Institution of Chartered Surveyors (RICS), when this “negative balance” fell as far as minus 60.1 per cent. December’s figure compares with a negative balance of 40.6 per cent of surveyors who reported that prices were on the slide in November.

With virtually every other reliable indicator of the housing market also pointing to grim conditions and falling prices, today’s RICS report will deepen already intense gloom over prospects for homeowners this year.

The RICS finds that confidence among surveyors in the outlook for both sales and prices fell last month to their lowest levels in a decade.

House prices are seen to be falling in every area of England and Wales – although the results suggest that they rose slightly in Scotland. The heaviest falls appear to be taking place in the West Midlands and East Anglia, according to the survey’s findings.

Anxieties are being heightened by a growing build-up of unsold properties on estate agents’ books, with stocks of homes up by a further 7.1 per cent in December, on the heels of a 9.1 per cent leap in the previous month, according to the RICS data.

The survey’s findings suggest that this increase in stocks – which threatens to act as a drag on house prices – may get worse, with December bringing a rise in new instructions by would-be sellers putting their homes on their market at the same time as demand remains seriously subdued.

The number of new instructions to sell properties climbed last month, with a net 4 per cent more surveyors reporting that these rose rather than fell, the RICS reports. That compares with a balance of minus 7 per cent in November. There were scant signs of improvement in demand from potential buyers, with 25 per cent more surveyors saying than buyer inquiries fell last month than said they had risen.

The surveyors’ body said that the overall balance of supply and demand last month indicates the loosest market conditions since August 2005, during the last serious setback for the property market.

Demand from buyers may be being sapped by the toll from the credit squeeze, as mortgage lenders toughen their criteria for making home loans and reduce the amounts they are willing to allow housebuyers to borrow.

Extract begins Gráinne Gilmore and Gary Duncan @ timesonline

Clearly if your on a fixed rate mortgage and can afford the payments you maybe able to ride out this slump. However this is not the case across the board, some people have to move because they have recently come off a fixed rate and have seen new rates increasing their payments by as much as 40%.

In some cases this is the straw that breaks the camels back and they have no choice but to sell quickly or face financial ruin. Given the choice selling is the only viable option, however in a climate with no buyers this means your part of the new property trap.

No funds to pay an increased mortgage and no buyers to sell up and move on. The Property Step has available funds for trade cash prices allowing you to step out off the doldrums and move on with your life.

As a property cash buyer we can move quickly, for more information read our sell your house fast FAQs or click here

Extract begins from Hilary Osbourne at guardian.co.uk

The number of homes repossessed by mortgage lenders rose by 40% in the first quarter of the year, and there are signs borrowers are increasingly struggling to repay their debts, the City watchdog said today.
The Financial Services Authority (FSA) said the number of repossessions had grown significantly in the last quarter of 2007 and the first quarter of this year, rising by 40% year-on-year from 6,471 to 9,152.

Research based on figures from more than 300 lenders regulated by the FSA showed the number of people who had fallen behind on mortgage repayments was also up. Some 54,000 borrowers fell into arrears during the first quarter of 2008, bringing the total number of loans in arrears to 302,000.

The number of new cases has stayed constant over recent quarters, but the total number of loans in arrears is 15% higher than the figure for the first quarter of 2007, indicating that borrowers who get into difficulties are finding it harder to catch up with repayments.

Rising costs for mortgages, energy and food, and difficulties in the economy as a whole have led some commentators to predict an increase in the number of borrowers struggling to repay mortgage debt.

The Council of Mortgage Lenders has predicted that 45,000 properties could be repossessed by the end of 2008 – a 50% increase on last year’s figure – and is expected to report a rising number of repossessions when it publishes figures for the first six months of the year this Friday.

Extract ends from Hilary Osbourne at guardian.co.uk

The increase in repossessions marks a telling point in the state of the UK housing market. The Property Step speaks to its fair share of families experiencing the threat of repossession. Whilst reports state that mortgage lenders will use this method as last resort, the figures reported by The Guardian speak for itself.

Once you’ve contacted The Property Step and explained your circumstances, we will spring into action to halt proceedings. The easiest way to prevent repossession is to pay the outstanding arrears and return to financial normality.

Unfortunately, for some this is easier said than done and the only solution is to either be repossessed and walk away from home ownership (not the preferred route) or sell on your property to clear the outstanding debt.

The Property Step can agree a property sale in 5 days or less and can exchange/complete in as little as 3 weeks. By calling us on 0800 011 29 39 you can be well on your way to financial freedom. In most cases, you don’t have to move home, as you’re able to rent back the property from us.

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