Save Money, Time And Stress Selling Your Property
Just last week, the Council of Mortgage Lenders announced that mortgage borrowing had fallen to its lowest April level in more than a decade and, in the first four months of the year, was down a total of 6% when compared to the corresponding period of 2009. Furthermore, emergency measures such as the Special Liquidity Scheme, which was introduced at the height of the financial crisis to bolster the housing market, is set to be withdrawn at the beginning of 2011 leaving a 400 billion deficit in the amount of mortgage finance available for homebuyers. Whilst interest rates remain so low, investors are looking for alternatives to traditional saving schemes for their money, and with a new government yet to reveal any policies in relation to the base lending rate, a new crash in house prices seems imminent.
Many people will be alarmed at this prospect, for not only does it damage the long term value of their properties, but many households are still living in a negative equity situation as a result of the last crash in 2008, and will find themselves owing far more to their mortgage lenders than their property is worth. Should the Government choose to raise interest rates to attract more funds for mortgage finance, the situation will become desperate for many, as the cost of repaying their finance agreements increases.