House Price Fall Could Have Immediate Victims
According to National Buyers, the house fall will squeeze the shrinking mortgage market even more and for many existing borrowers this could be a serious issue.
(PRWEB) June 1, 2008 -- Yesterday the Nationwide Building Society release figures showing a house price fall of 2.5% across the UK. This equates to around a loss of £5,000 in just one month. Although many believe that the fall will not cause as many issues as the last crash in the 1990's, National Buyers still believe that there is an issue for previous high loan to value borrowers.
According to figures form the Council of Mortgage Landers, the amount of people in arrears is around 73,000, which is the highest level for six years. This could lead to a worrying trend with many borrowers facing financial hardship and struggling to meet their repayments.
John, a Senior Buyer at National Buyers said, 'Although it is true that many have earned substantial sums from property and have healthy amounts of equity, we are seeing a lot of other borrowers who are at their maximum borrowing levels, and they are now facing an even harder time, especially when looking to move to another competitive mortgage rate.
This is backed up by figures form Mortgage Monitor who has figures showing a reduction on the mortgage products available to lenders has dropped by 76%. There were more that 68,000, at it's height in 2007, and now it's down to 16,000.
John went on to say, 'We are seeing many people who were at borrowing levels around 100% of their house price, were in some cases borrowing every couple of years from their equity to pay off other debts like credit cards, then doing this over and over. Now that their house value is not going up, they are facing a situation where they just can't raise the money to pay other debts off, and this coupled with the lack of mortgage products they almost certainly have to stay with their existing lender and pay a much higher rate of interest on their mortgage. It's a double blow, and will cause many borrowers some serious issues.'
National Buyers can buy your property fast and allow you to rent it back, please call: 0800 977 45 45 or visit www.nationalbuyers.co.uk.
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