Musings of a London Property Finder

Sophie Ridge writing in The News of The World on Sunday reported that Northern Rock aims to fast-track repossessions, sending in the bailiffs to 7,500 homes by Christmas.  The bank will take a particularly hard line with customers who are not expected to be able to get themselves back into the black.

The combination of 125pts mortgages, illness, no mortgage payment or income protection insurance and the end of low fixed rates means more and more people are falling behind with payments.

The NOTW quotes that 18,900 families lost homes in the first six months of the year and that the Council of Mortgage Lenders prediction remains 45,000.  Some of those affected will be Buy To Let investors losing an investment rather than a family home.

It would seem to us better for repossession to raise it’s ugly head sooner rather than later,  however painful it may be, because people tend to run up even more debt borrowing on credit cards with very high interest rates to make mortgage payments which exacerbates their liability in the long run if they aren’t able to turn things around.  This London Property Finder advises again make sure your mortgage is protected by appropriate insurance.

Technorati Tags: Arrears, Buy-to-let, London Property Finder, Mortgage arrears, Mortgage protection insurance, Repossessions

Tags: Arrears, Buy-to-let, London Property Finder, Mortgage arrears, Mortgage protection insurance, Repossessions

Musings of a London Property Search Agent

The Telegraph reports that private equity group BC Partners who bought Foxtons from founder Jon Hunt last year for a reputed £390 million, are in discussions with Rothschilds to help restructure debt.  Liam Vaughan writes that the group are looking to refinance over £250 million of debt which is currently costing circa £26 million a year in interest payments alone.

The group are not reportedly looking to shed staff or branches but hoping to cut costs through clever refinancing to improve cash flow to see them though the current difficult trading period.  Anecdotally, however London Property Search Agents like us will know that since a high proportion of staff earnings at Foxtons are commission based, many members of staff have already left.

Technorati Tags: Estate Agents News, Foxtons, london property search, London Property Search Agents

Tags: Estate Agents News, Foxtons, london property search, London Property Search Agents

Musings of a London Property Search Agent

Three quarters of equity release specialists have seen an upturn in enquiries and expect borrowing to increase by 5pts in the next 3 months according to Citywire.  

Anecdotally one of our contacts tells me he can borrow at 7.5pts and receive 11pts on his presumably considerable savings.  But then with the current rumours of major US banks in trouble, perhaps rate chasing is best left to the experts, or at least those who can afford to lose. 

Financial planners warn of the equity release gang blowing the money on unnecessary conumables and suggest loans which pay out on a monthly basis to cover necessary purchases.  One of our small investors has secured just such a loan from her existing lender, which will be used to part-fund a simple house to flats conversion.  The loan will work very much like a self-build mortgage, but is flexible so the borrowee can draw down funds as required, without the need to have work signed off at each stage. 

Even taking the current market into account and with very pessimistic future sales predictions, her plans should leave her with a beautiful 2 bed 2 bath flat and the proceeds from the flat she sells will drastically reduce her mortgage.  A great example of the little guy – or girl proving it’s still possible to make money from property in a downturn!

By using a London Property Search Agent like us you can weather the storm of the current downturn.

Technorati Tags: Draw down loan, Equity Release, London Property Search Agent

Tags: Draw down loan, Equity Release, London Property Search Agent