Mortgage famine could continue for years

A recent report has claimed that the continuing mortgage famine that has hit the UK since the onset of the global credit crunch last summer could continue for years to come. Whilst some lenders have been reducing the interest rates on their mortgages, which may have given some hope to potential buyers, one industry official has said that this does not mean that the problems are over, as there is still a huge problem when it comes to the supply of mortgage loans.

Alex Murray of national adviser network Thinc Group stated: ‘This is not the start of a new dawn. Massive supply problems remain.’ He added that until stability was restored to the wholesale mortgage market conditions would continue to get worse, and the shortage when it comes to mortgage supplies would continue. This would impact on the downward pressure on house prices and make it increasingly difficult for consumers to get their hands on affordable mortgages.

Another broker agreed, stating that whilst some lenders were starting to provide finance again it was only based on safe lending, where borrowers have a high deposit to put down and a fairly good credit report. He said: ‘Certain lenders appear to be jockeying again to expand their market, but only where very safe lending is concerned.’

The potential suspension of stamp duty in the meantime continues to impact on the level of housing sales, and one official said: ‘With the Chancellor’s confirmation that he is considering a temporary suspension of stamp duty, housing transactions will diminish further until he sets out his proposals. Who will want to commit to a property purchase now when it is probable that by waiting a few months they could save thousands of pounds?’

How To Avoid Repossession

With the increasingly unstable housing market in the UK, and the heavy financial demands on the modern household budget, it is no wonder that repossession is a real threat for many homeowners. The bottom line is that if you take out any kind of secured loan, that is a loan tied to your property (usually a mortgage), then if you are unable to repay that money at any stage not only could you lose your property, but also you could receive a poor credit rating, which would make it difficult for you to get any kind of credit in the future.

The first step to avoiding repossession is to be realistic about your monthly income and to plan your household budget carefully to ensure enough money is available to meet your needs. You need to be absolutely honest about your outgoings and make sure you consider all possible expenses, including the following:

• Mortgage or rent
• Council Tax and all utility bills (telephone, gas, electric etc)
• Food and Drink
• Life, home and personal insurance
• Motoring/Travel (including petrol, insurance tax etc)
• Loan/Credit Cards repayments
• Household maintenance
• Clothing
• Toiletries and medicines
• Leisure Activities
• Other (mobile phones, TV license etc)

When working out your budget allocations, make sure that repayments for loans, mortgages and credit cards can be met comfortably, as missing these payments can incur heavy charges and in the case of secured loans could lead to your home being repossessed. If you cannot meet these expenses, then you need to reassess your current spending and look for areas where you can cut back and make savings. Shop around for better deals on services such as insurance, gas, and electric. Think about reducing budgets for luxury items and leisure activities, and also look at where you can make savings on food and drink shopping.

If you are struggling to meet your monthly outgoings then there are many advice agencies authorized by the FSA, which can help you understand your financial situation, and deal with any debt repayment problems. Also you must contact your lender if you find yourself in the position where you cannot meet a repayment on your mortgage. Some lenders can offer deferments on payments for up to 6 months, which can be helpful during difficult or financially unsettling times.

Also you can protect against repossession by taking out insurance, such as ‘Payment Protection Insurance’ (PPI). This will cover monthly repayments on mortgages, loans and credit cards if you have an accident and are unable to work, or if you become suddenly unemployed. Or you could take out ‘Income Protection Insurance’ (IPI), which will replace part or all of your monthly income if you are too injured or ill to work, and stop receiving your usual earnings. If you are considering taking out PPI or IPI insurance make sure you shop around and examine policies thoroughly, to ensure you are getting the best cover to suit your individual circumstances.

Another option to avoid repossession is to sell and rent back your property. This is most likely to be your biggest asset and in some financial circumstances releasing the capital from this asset may be a way of preventing repossession in the face of unmanageable debt. In a ‘sell and rent back’ deal you would have to sell your property outright to a relevant investment company, and then you would stay in the property and rent it back from them. This means you will not have to move or leave your home, and the company will handle the property sale and rental details on your behalf. Make sure you look at all the “sell and rent back” deals available, and choose the package that is best for your individual financial situation. Some companies do offer more money for properties outright, but then the rent could be higher than you may be able to afford in the long term.

The Effects of Critical Illness on your mortgage

In the UK someone has a heart attack every 2 minutes. Sadly many of those who suffer a heart attack will be unable to return to work quickly, if at all. The problems caused by been unable to work can be almost as worse as the condition itself and can very quickly lead to problems with keeping up with mortgage repayments and other regular commitments.

Many people believe that if this happened to them their mortgage company would be sympathetic and take into account the loss of earnings. Unfortunately, especially in the current economic climate, mortgage companies are very quick to jump on overdue payments and will always push for eventual repossession of homes.

So what can home owners do to protect against such an eventuality? A Critical Illness Cover policy can pay out a lump sum amount in the event that you suffer from one of a list of so called critical illnesses. These include conditions such as heart attacks, advanced cancers and strokes, plus a long list of more obscure conditions.

The payout from a Critical Illness policy can be then used by the homeowner in a variety of ways such as keeping up to mortgage payments, paying for medical expenses or even paying of their mortgage. They are designed to provide a safety net at a time when the last thing on your mind is paying your mortgage.

Water Front Houses

A waterfront property is that which is directly adjacent to a large body of water, such as a lake, river or ocean. The proximity of the water is highly desirable in the property market and this type of real estate commands higher sales values and is often in great demand.

At WaterfrontHousesUSA.com, brokers, waterfront real estate agents and property managers can promote their waterfront properties and land online, whether they are intended for recreational or investment purposes. This is not a real estate service itself, and there are no commissions or hidden fees. Members will pay a flat rate to use the service, and can list an unlimited number of properties that they have for sale or rent without any additional charges. This basic unlimited package costs $149 per annum, and you have the option whether or not to renew your contract at the end of each year, allowing you flexibility with your property advertising.

There are also regular offers and promotions on the Waterfront Houses USA website, such as a bonus ‘Featured Agent’ upgrade for those signing up for their initial unlimited package. This will mean that adverts will appear above the standard listings, and also on the sidebars giving them more exposure. There are also regular cash and other prizes available worth over $500, but these will be subject to tax, and you will need to fill in a W-9 form to claim them. All the current promotions and bonus opportunities are listed under the ‘promotions’ section of the website.

You will need to register as a member to set up your account and advertise on this site. Registration is free, and all your information will be kept confidential and not passed on to any third parties. You can sign up for a six month trial unlimited package to begin with, and payments are secure and processed by Paypal.

After you have listed your waterfront homes and uploaded the necessary photos, each advert will be published onto the listings linked to a contact form. This form will be filled out by visitors to the website who are interested in the property, and will be directly sent to your email address. This contact form process protects your email from being targeted by spam and junk email companies. You can also nominate a contact address or telephone number if you are happy to receive off site enquiries on your advertised properties.

It is also possible to advertise some properties that are not listed as ‘waterfront’ on this site, such as properties that overlook private lakes or ponds, or properties that have views of large bodies of water such as lakes or oceans.

Debt Settlement Tips

If you are thinking about using debt settlement as a way to resolve your financial situation, then there are a few points you need to consider carefully first. Debt settlement is considered as an alternative to full bankruptcy, but is certainly not an easy option.

Debt settlement works by negotiating with your creditors to form an agreement plan to reduce your debts by regular payments. This relies on the cooperation of both the debtor and creditor and can be a way of avoiding unnecessary and lengthy court involvement. There are drawbacks to this procedure though and it will not be suitable for all circumstances.

The total amount of debt involved will affect negotiations and creditors may not be willing to accept the amount the debtor can offer to regularly pay, if this is too low in comparison to the total owed. Also the creditor may not be willing to negotiate a deal at all on debts that are under a certain amount of money (commonly a minimum of £15,000), and may insist on the balance being repaid in full. This is common in credit card debt settlement, because a great deal of these unsecured type debts are under minimum total amounts, and therefore companies do not feel it is worthwhile going through a settlement agreement process.

There is also a possibility that if the debtors fails at any point in these regular payments that a lawsuit could still be brought against them, as they would be in default of a signed agreement. Some creditors might also insist on a lump sum to start off the payment process, especially if the regular payment offered by the debtor during negotiations is very low in comparison to the total debt owed.

You can find out more about debt settlement online, and also find information about debt settlement companies that provide negotiation services to approach your creditors on your behalf. Many of these companies offer a free initial enquiry service, either by phone or email, although if you do decide to take on their services you need to ensure you understand exactly how much it will cost in the long run, as there can be some hidden charges in these type of services. Also some companies will only be willing to take on settlements on debts over a certain amount of money, typically over £15,000 or more.