Even though there is a current decline in the housing market in the UK, a new report by the National House Federation is predicting a rise in prices of 25% in the next five years. This was determined by estimating that an increase in housing demand and a decrease in housing production would make the difference. The Federation has requested that the government continue investing in affordable house for the expected increase in need.
In addition to the supply and demand for affordable housing currently, the supply and demand problem is becoming twofold by lenders cutting off its lending in an effort to maintain their services with existing applications being processed. Fortunately, the recovery is expected to begin as early as 2010, much to the relief of the homebuyer. For more information, please contact The Mortgage Shop
A new record has been set by mortgage lending for property purchase falling to a new low. The British Bankers Association (BBA) has stated that during May, numbers of mortgage approvals has dropped to 28,000. This is a drop of 20% since April and 56% drop since the previous year. This number of approvals is apparently the lowest since the BBA started recording data in 1997. “Measures of mortgage activity were lower in May as a result of tighter lending criteria and economic pressures on households, only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders.” Said David Dooks of the BBA.
Apparently two thirds of the UK mortgage lenders are part of the BBA who are reporting that the UK property market is dealing with an unprecedented slump in sales. Due to the current credit crunch, a lot of the funds used for mortgages and provided by lenders and international financial markets have been stopped.
Many people in the property industry, such as builders, mortgage lenders, surveyors and estate agents are reporting the same bad news and sales are said to drop to between 35% and 45% over 2008.
These bad sales figures have led to house prices falling over the last few months with predictions of prices falling by more than 10% by the end of the year.
A good indicator of sales is mortgage approvals levels, but figures from the BBA show a contradiction in levels so far. This data does not include building societies which will alter results.
All mortgage lenders will provide data and these figures will be published by the Bank of England on 30 June. ”Deep correction” Howard Archer, chief UK and European economist at Global Insight, said “More housing market data, more very worrying news that heighten concern that we are in for an extended, deep correction in the housing market. “The BBA data graphically highlight that housing market activity is currently being throttled by stretched affordability and tight lending conditions. “Very low housing market activity seems certain to feed through to further depress already markedly weakening house prices.”
For more Property news and information on a quick property sale follow this link to Sell House for Cash advice.
If you are having trouble paying off your mortgage and maybe even facing a repossession hearing then you need to get hold of some money quickly. This can obviously be a case of borrowing money from someone you know or taking out a loan, but seeing as you are in financial problems already, these are probably not advisable. Another solution is a quick property sale using a company that will quickly and efficiently buy your house off you giving you financial freedom.
If you need to sell your property fast it is best not to go for the traditional method of using an estate agent, as we are all too aware that this can be a long and costly process, which is something you cannot afford to do if you are having difficulties.
Whereas an estate agent can get you a good price for your property, it doesn’t guarantee a quick deal that will offer you cash for property.
The best way to arrange a fast house sale is to get in contact with one of the many Cash for property specialists that are out there, these companies often guarantee to buy your house, completion of the sale within a short set time, no estate agent fees and a cash sale price. These companies will also offer services such as sell and rent back, this is where they will buy the house off you, which releases the equity of the house so you can clear your mortgage arrears and then rent the property back off the company. This stops you from having to introduce the stress of moving your family into another home, let alone finding a new home.
Facing repossession can be one of the most traumatic times in any home owners life. So we have broken down the process into 5 stages to help you cope and prepare.
If you miss more than 2 months of mortgage payments then your mortgage provider may start the repossession process. But in most cases they will contact you and try to come to an agreement where the arrears will get paid without the need for legal action and will stop repossession.
If these conditions are not met and you still don’t pay then the mortgage provider or their legal team will write a warning of legal action, they will then apply to the court for a repossession order.
The court will make a summons, which is where the court will “summon” you to court, providing a date and time for your hearing. At this point you should contact a legal professional and reply to the court as it may harm your case if you don’t.
The next stage of the process is for you to attend the hearings, if you fail to do so, the judge will more than likely award the possession order against you as you have failed to give evidence. When you go to your hearing the judge will listen to evidence from both you and your mortgage lender and the make a decision on an outcome. These are the following possibilities.
Case dismissed – this happens if the arrears have been paid off so the repossession stops.
Case adjourned – This is when the hearing is postponed for a whatever reason, meaning the hearing will be rescheduled for a later date
Suspended Possession Order – If you agreed to pay the regular monthly payments as well as an amount towards the arrears for each month, then the judge can suspend the possession if he is convinced that you can make these payments. If you default on the agreed terms, the lender can seek possession by eviction or possession warrant without a further hearing.
Possession order – This allows the lender to take possession of your property after the possession order date. This result usually comes about if the judge finds out you haven’t contacted the lender or the court, or if he believes you cannot afford the payments you have agreed to.
If you don’t make the payments agreed to in the Suspended possession order or you have not moved out after the possession order date, the lender can apply for a warrant of eviction notice. This means you will get a letter telling you, that you have 7 or 14 days to leave the property. On the date you are meant to leave a bailiff will arrive to take possession.