Repossesions Bargains As Lenders Get Heavy

Musings of a London Property Search Agent

A plethora of stories about repossessions have emerged in recent days with Shelter quoted liberally in The Times about those with a second charge mortgage amid news that the FSA has urged lenders to treat customers sympathetically and avoid moving too quickly to repossess. In an interview in The Times yesterday, Shelter insisted that the predicted 45,000 repossessions this year is a long way short of the actual figure since it doesn’t take into account those who go into arrears because of second charges which can be for second homes, buy-to-lets, cars or more loans. However according to The Times,

“The Finance and Leasing Association, which represents 75 per cent of second-charge lenders, said its members did repossess hundreds of homes last year, but on a more modest scale than that suggested by Shelter. It said its members repossessed nearly 800 properties that were not included in the CML’s (Council of Mortgage Lenders) figures. ”
 

Although repossessions forecast this year will be 2/3 that of the worst years of the early 90s, anecdotally, a significant proportion of those will be second homes or buy to lets, whereas in the 90s most repossessions involved people losing their main home.  To buy a new home now contact this London Property Search Agent
 

As for heavy-handed banks, it seems the culprits are predominantly specialist lenders, ie those dealing with buy to lets, mortgagees with adverse credit, self-certification lenders etc. By their very nature, many borrowers falling into this group would have been unable to borrow through a high street lender, which should at the very least give comfort to the masses with high street mortgages.
 

It is always sad going into a repossessed home. But they do provide opportunities particularly for first time buyers and those wanting to move to an area where they couldn’t afford a place on the open market. And if you are our client, we will have considered repossessed property as part of our search for you.
 

For nervous buyers – here are a few tips which shouldn’t be ignored.

• Take out mortgage protection and income protection insurance
• Don’t buy it from your lender
• Don’t overstretch
• Think about how your dream home could work for you if everything goes wrong

Technorati Tags: London Property Search Agent, London repossessions, Repossessions

Tags: London Property Search Agent, London repossessions, Repossessions