Many UK homeowners with patchy credit histories may be forced to put their properties on the market next year, as lenders get tough.
The Council of Mortgage Lenders (CML) warns that, due to the recent credit crunch many homeowners will face higher mortgage payments.
According to the Financial Services Authority (FSA), around 1.4m homeowners are facing a rise in repayments. In some cases, monthly payments may rise by as much as 60%.
According to CML Director Michael Coogan:
“Most customers have a stark choice if they don’t have a good credit history and can’t refinance, they either need to change their spending patterns and batten down the hatches or they take the view that they aren’t going to solve the problem and sell and become a tenant at the other extreme.”
Coogan has called on the government to offer support for homeowners who may be in difficulties with mortgage arrears.
For homeowners struggling with arrears due to this increase in monthly payments, a cash property buyer may provide a solution to the problem. Rather than letting the situation deteriorate until they are threatened with repossession, homeowners would be wise to consider the benefits of a quick house sale. Unlike an estate agent, a property cash buyer like Molae Properties is able to facilitate a fast house sale within a week in many cases. This will help you avoid the threat of repossession and allow you to pay off any other debts. Molae Properties also offers a sell and rent back solution so that, while homeowners may be forced to sell their houses, they still have the option of remaining in the same home.