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Over the past few years it’s certainly no secret that many homeowners have been at risk of losing their home to repossession. In fact as many as 1 in 300 homes were a victim of repossession during the recession, as the UK economy was looking bleaker than ever.
However, the number of repossessions fell dramatically by the end of 2013, giving hope to the millions of homeowners throughout the UK. Having said that, according to the Telegraph, there were still a mighty 7,200 home repossessed between July and September 2013, and nearly 150,000 borrowers were in arrears with their mortgage repayments. This equates to 1 in every street. Now, as well as concerns over increases in interest rates, experts have expressed concern over the new Universal Credit and its effects on homeowners.
According to the Guardian in October 2013, the Universal Credit system may reduce the amount of money housing benefit claimants are entitled to. This is then likely to impact on landlords who own the properties. Currently, buy to let mortgages account for nearly 13 per cent of UK mortgages, and records suggest that buy to let properties have more repossessions occur than others, however their arrears appear to be lower. When a repossession occurs it can make it almost impossible to obtain a mortgage or credit again in the future, making it even more important to find a better solution to avoid repossession.
Despite the economy appearing to be on the mend, the recovery of Britain’s economy could in fact cause interest rates to begin to rise once again. Although the Government have pushed banks to offer help to homeowners experiencing financial difficulty, such as payment holidays or extending terms and so on, nothing can prevent the potential of increased mortgage repayments due to rising interest rates. Fixed rate mortgages are obviously preferable, but of course come at a premium to the borrower.
It is obviously advisable to speak to your bank or mortgage provider as soon as you feel you may be experiencing any financial problems, as repossession is really a last resort. However charities such as Shelter, are still currently concerned for many tenants and homeowners at risk of losing their home. No amount of planning for the future can prepare for such a drastic change in Britain’s economy or rising energy prices, and of course property value.
This is why companies such as NPT Quick House Sale are a serious consideration for many property owners at risk of losing their home. They can provide the right support and a positive solution to help avoid repossession. Many purchases can be completed within as little as seven days, whilst allowing a licence to remain for a period for homeowners who need time to make final moving arrangements. The question remains as to whether younger generations will have the opportunity to get on the property ladder with such economic uncertainty, but in the meantime, homeowners can stop repossession and beat the banks by opting to sell their home to NPT.
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