A market analysis company commented that the upward trend in interest rates would have a great impact on the affordability rates of houses.
(PRWEB) September 03, 2014
The Council of Mortgage Lenders (CML) released new data confirming that interest rates rose for a fifth month in a row as it jumped by another 3.5 per cent last June, What Mortgage published on 27 August 2014.
In light of this development, Rick Otton, a highly-respected property coach says that a cost-efficient way to buy a home at times like this is through seller financing.
“A market analysis company commented that the upward trend in interest rates would have a great impact on the affordability rates of houses. If people compute the total cost of mortgage repayments based on the current interest rate, families are currently allocating 21.7 per cent or a fifth of their household income to monthly mortgage payments. New home purchasers, on the hand, are paying a bit more per month at 21.9 per cent,” Mr. Otton shared.
“Now interest rates are starting to normalise, it’s expected that banks will tighten lending in the process. As a result, more buyers may find themselves locked out of the property market,” he added.
Mr. Otton then shared in one his recent interview for RickOtton.co.uk that seller financing could help all UK residents aspiring to own a home or create a property portfolio to without breaking the bank to get their foot into the property ladder.
“Seller financing is very advantageous both for home buyers and property investors because it eliminates the need for taking out new loans or saving up for a large a deposit. When you eliminate these financial obstacles, the terms become more affordable and accessible for buyers, who have the passion but lack the funding to fulfill their dreams. For example, rather than take out a new mortgage, a buyer can negotiate to assume the existing loan and pay the remaining equity in increments. This allows the buyer to move in quickly and minimise upfront costs. On the other hand, this allows the seller to move away from unwanted debt and create a passive income stream at the same time,” he explained.
Visit http://www.rickotton.co.uk/ today to get more information about creative seller finance strategies and how these strategies can be applied in changing market conditions.
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.