U.K. residents may opt to negotiate for flexible terms with the seller. A buyer can assume the existing financing and pay the rest of the remaining equity in increments. In this way, it’s much easier for the buyer to pay for the seller’s price.
(PRWEB) April 28, 2014
The EY Item Club predicted that interest rates will jump 2.7 percent in 2017, the Mortgage Introducer reported on 14 April 2014.
The Club’s Spring 2014 Item Club Forecast revealed that the hikes would be staggered starting 2015. Base rates would rise 0.7 percent in 2015, another 1.6 percent increase would be felt in 2016, until it reaches 2.7 in 2017.
“The ups and downs of interest rates are all part of the property cycle. While there’s no way to escape this cycle, there are ways on how people can work around the effects of fluctuating interest rates,” according to Rick Otton, a highly respected real estate investor.
“As I’ve always taught my students, people can buy or sell houses anytime, whether interest rates are down or not, if they open their minds to other ways of buying property – outside the traditional process of getting new mortgages with the bank. Moving away from the usual process is important, so that you won’t get burdened with a very large debt once interest rates start going back to normal rates again,” he said.
Mr. Otton then revealed in a new interview for his Free Pack that seller finance strategies offer people the flexibility required to survive the rise of interest rates in U.K.
“Now that interest rates are at a relatively low rate it’s easier to make the monthly payments on new mortgages, but when rates go back to normal levels, monthly amortizations will rise with it. Although increasing rates is not bad, some people may not have the capacity to pay once the monthly mortgage payment increases and risk the possibility of eviction or foreclosure from their houses,” he added.
“So rather than take out a new bank loan, U.K. residents may opt to negotiate for flexible terms with the seller. A buyer can assume the existing financing and pay the rest of the remaining equity in increments. In this way, it’s much easier for the buyer to pay for the seller’s price. Moreover, the seller can immediately relieve himself of the debt obligations he no longer wants. Hence, it is a win-win for both parties,” according to Mr. Otton.
Visit http://rickotton.co.uk/freepack/ today to register for a copy of the limited-edition Power Property Profits Pack. This latest offering from Rick Otton and his team has helped thousands of people in the UK, Australia and New Zealand to buy houses without saving up for a huge deposit or applying for new mortgages.
About Rick Otton
Rick Otton is a property investment professional who, over the last 23 years, has introduced innovative real estate strategies to the UK, Australian and the United States. His creative ‘low-risk, high-reward’ approach to buying and selling houses is exemplified in his own business, We Buy Houses.
This year marks the 10 year anniversary of Mr Otton introducing his strategies to the UK, and the 5 year anniversary of his innovative ‘Buy A House For A Pound’ process – one that attempted to be emulated by others. His constant process of strategy refinement, and adapting to the ever-changing real estate market, continues to place him at the forefront of property investment education.
In 2012 Rick Otton published his Australian book ‘How To Buy A House For A Dollar’ which was named in the list of Top 10 Most Popular Finance Titles for 2013. A UK version is on the drawing board for publication in 2014.
Mr Otton freely shares insights into his non-bank-loan strategies that have allowed everyday UK men and women to beat the rental cycle and have their own homes. He coaches others on how to build profitable businesses by facilitating transactions that focus on the needs of potential buyers and motivated sellers.
Access his free downloadable Power Property Profits Pack at RickOtton.co.uk.