(PRWEB) June 23, 2014
A recent meeting of the Bank of England’s financial policy committee has sparked rumours that it will impose further restrictions on mortgage lending. The results of the meeting will be released on 26 June 2014, estateagenttoday.co.uk reported on 19 June 2014.
Upon reading about this news, Rick Otton, a highly-respected property coach, shared some of the proposed changes supposedly discussed during the meeting.
“Additional reports I read said that committee members contemplated on placing a minimum deposit fee for mortgages on residential properties and further tightening the affordability tests introduced with the Mortgage Market Review Rules. These changes were, allegedly, proposed after Dr. Broadbent who is an external member of the committee. Mr. Broadbent pointed out that the condition of the real estate market could threaten the economy should another collapse take place due to risky mortgage debts. Mortgage lenders, on the other hand, are protesting against the implementation of these rules as it may subdue buyer activity,” Mr. Otton discussed.
“It seems that the Bank of England is trying to regulate the flow of mortgages as much as they can now that house prices are climbing at unprecedented rates. But for people looking to enter the real estate market, this means additional restrictions for their shot at buying property,” he continued.
Mr. Otton then said in an interview for Rickotton.co.uk that whatever changes may come U.K. residents could rely on seller finance strategies to help them buy property for sale.
“Homebuyers and property investors shouldn’t feel restricted in the impending changes to mortgage applications because there are ways to go around these proposed changes while still being able to buy a property for themselves. The most efficient way to accomplish these two goals is to enter the market using seller finance strategies. Firstly, it doesn’t demand too much cash from buyers before they can get in due to the flexibility in the terms. Secondly, because of the flexibility in the transaction, a buyer coming in can assume an existing loan rather than take out a new loan,” according to Mr. Otton.
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.
Visit http://www.creativerealestate.com.au to tune in to Mr. Otton’s weekly podcasts. All episodes and transcripts are available free of charge.
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.