Seller financing is helping people around the UK buy their dream homes or investment property without paying large deposits or applying for new home loans.
(PRWEB) September 10, 2014
The Council of Mortgage Lenders revealed that there has been a 17 per cent increase for new mortgages issued to first-home buyers this year compared to last year’s figures. However, records also prove that many of them are borrowing more in order to supplement their income, First Rung Now published on 3 September 2014.
In light of this alarming news, Rick Otton, a respected property coach, discusses how first-home buyers could purchase houses for sale without acquiring more debt.
“CML said that 12,300 new mortgages were awarded to first-home buyers in London only, but the total value of mortgages released to first-home buyers in the second half of 2014 reached £3 billion. However, the increase in new mortgage approvals is also accompanied by a rise in the total amount borrowed by buyers. First-home buyers now borrow 3.9 per cent higher than their gross income. The average amount of mortgage taken out is £212,000 slightly higher than last quarter’s average of £200,000,” he shared.
“Taking on large debts is risky. The higher the debt, the more vulnerable an investor becomes to changing market conditions. It’s advisable for buyers in the UK to start finding other ways into the market without accumulating too much debt and putting the financial future of their family at risk,” according to Mr. Otton.
Mr. Otton then shared in a recent interview for RickOtton.co.uk that an alternative way into the UK real estate market is through buying houses with the help of seller finance strategies.
“Seller financing is helping people around the UK buy their dream homes or investment property without paying large deposits or applying for new home loans. This way, families won’t be caught in a debt trap of expensive mortgages once market conditions change. For example, rather than apply for a home loan, the buyer can negotiate to assume the existing loan and pay the rest of the equity in portions. This allows the buyer to move in quickly, without all the hassles associated with taking out a new loan. Moreover, it allows the seller to move away from unwanted debt immediately while creating a passive income stream,” he discussed.
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.