Can I Sell & Rent Back with No Equity?

Q: Some Companies Are Offering Me Full Market Value - Is This A Good Deal?
A: Beware companies who promise to pay full market value for your home!
No cash buyer will pay 100% of the full market value. Anyone who says they will is almost certainly trying to get you signed up to a deal. They know that you may be desperate. They will string you along right up to the exchange of contracts.
Then they will use some excuse to renegotiate the price - and guess what? It will probably be too late for you to find an alternative and you will have little choice but to agree to a massive discount on the price you accept or risk the cash buyer pulling out.
In contrast, once we agree a purchase price with you, we guarantee that is the price we'll pay.
You can contact us on FREEFONE


Or email tellmemore@cashformyhouse.co.uk
We've never sold one of our rent back properties and we've never evicted a sell and rent back tenant!
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We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

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The British TV daytime slots have long been infested with adverts from debt companies, sub-prime lenders and all manner of businesses aimed at getting you to sign on the dotted line to give you loans, credit cards or to consolidate your debts into a homeowners loan.

Now they are joined by adverts for Sell and Rent Back schemes. This s good for the awareness that such services do exist, but make sure that if you contact one of these companies that they do NOT CHARGE YOU ANY FEES whatsoever in the process of Sell and Rent Back!

For a fast and free service if you want to find out more, or talk to someone about your repossession or eviction problem then please visit our website or contact us by Freephone.
For more information contact us on

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

In the last few weeks there has been a lot of press attention focusing on horror stories of sell and rent back. These stories have appeared in the tabloid press and even on the BBC Five Live programme.

The stories all focus on people who have sold their homes in order to rent them back and then once the tenancy contract expires are asked to leave their own homes.

Whilst this may happen in extreme circumstances, the reality is that sell and rent back companies are in the business of renting properties not selling them! It is the dream of all landlords to have a decent hard working tenant who genuinely cares about their home. In our experience, the tenants that we work with who have previously owned their homes are fantastic tenants. We would never be able to find tenants on the open market who really respect and treat the property like the home that it is.

If someone buys a property to rent, any kind of Buy to Let property, at a discount and then sells the property they immediately have to pay Capital Gains Tax, and that tax is greater if the price paid was lower than the sale price. This makes no sense to us. We are not in the business of selling houses and paying tax. We are in the very long term investment business and we LOVE tenants who want to stay on for years! We even give less than market rents wherever we can to actively encourage our rent back tenants to stay.

With this in mind I thought it might help to provide some advice on how to avoid being targeted by one of those rip off rent back companies from the tabloid stories.

1. Beware of anyone who says they will pay full market value for your home.
It's a lie! They will tell you this at the beginning, and then when it is too late and you may be facing eviction, they will bargain down the price to the absolute rock bottom.

2. You should NEVER pay for any valuation for your property.
If anyone tells you otherwise, walk away!

3. Beware of anyone calling themselves National or Nationwide when they advertise their services.
You are almost always better off with a small company or individual landlord who will be more receptive to your needs and almost always easier to deal with

4. Remember that whoever buys your home will be your landlord!
I cannot stress this enough. If you don't feel comfortable with the buyer, then imagine what it could be like when they are your landlord?

5. Don't worry too much about 12 month tenancy agreements
This is absolutely normal in the rental market, and remember as long as you are a good tenant a landlord would be crazy to cause you to leave because it will cost them money and time to find new tenants!

6. People often ask me if there is a catch
The catch is that you will no longer own your home. But, as long as you are prepared for this, there is no reason why living in your home should be any different from before, except of course that you will have paid off your debts and your mortgage for good.

7. Don't be afraid to ask for references.
If the company or person offering to sell and rent back your home is a genuine operator, then they will have no trouble providing references from other people they have helped to stop repossession. (We can, just ask!)

8. Finally, if you are thinking of selling and renting back you are probably in financial difficulty, so don't let anyone talk you into to paying legal fees.
We pay all legal fees, even for 48 hour exchanges.

if you want to find out more, or talk to someone about your repossession or eviction problem then please visit our website or contact us by Freephone For more information contact us on

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

How to Cut Your Monthly Bills
One of the most common questions you will find being asked online or offline is 'How can I cut my monthly bills and outgoings'?
If you already own your own home, then there is an answer that may be right under your nose.
With Northern Rock near the verge of collapse, interest rates on the rise and global tensions leading to a downturn in the world economy. Maybe the time to be a home owner is over?
These days with rents being cheaper than most mortgages and house prices beginning to fall, it can make more financial sense to rent rather than buy your home.
If you already own your home and you are feeling pressure from your mortgage lender or have unsecured debts like credit cards, then selling your home and renting it back could be the option for you.
You could get
- A Cash Lump Sum
- Your Mortgage and other Debts Paid Off
- Lower Monthly Costs
- More Disposable Income from you pay packet
All this without having to move from your home, so your kids can stay in school, your neighbours don't have to know that you situation has changed.
But most importantly you will have a fresh start without debt, something that very few of us these days are able to experience.
For more information contact us on

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

For the first time since the 1980s property market crash renting property in the UK is cheaper than buying. Whilst rising property prices and now rising interest rates mean that the average house in UK with a value of ￡250,000 could be costing up to ￡1400 pcm at current interest rates!
That ￡1400 pcm could rent you a substantial family home probably worth in the region of ￡400,000! This is especially unwelcome news when you are paying this money for a smaller home, and you have no money left over for the essentials of family life. Add to that the cost of credit card bills and other secured and unsecured loans and, as the interest rates continue to rise, we all face higher and higher monthly bills. And we all know that our wages are not rising at the same rate.
So how can you cut your monthly bills and at the same time pay off your existing debts and become debt free? Maybe it sounds too good to be true, but it is possible to do exactly that simply by using the one asset that you have - your home.
By selling your home and renting it back, you can afford to pay off your existing debts and reduce your monthly outgoings.
Here are just a couple of examples: Mr and Mrs H from Worthing, Sussex. They had mortgage payments of ￡1143.00 pcm, a secured loan repayment of ￡276.00 pcm. That's a whopping ￡1419.00 pcm. However, Mr and Mrs H didn't have the income to support these payments as well as all the other things like council tax, home repairs, food, petrol and just basic things for everyday life. So they used the one thing they had - their house - to pay off everything. They sold their large 3 bed semi detached home and rented it back at just ￡800 pcm fixed for 2 years. They no longer have any debts, plus they have a tax free lump sum in bank earning interest for them, instead of paying it out to the lenders!
To understand how you can benefit from our Sell and Rent Back service (including our optional Buy Back scheme) visit our website or contact us directly for free on
There's no obligation but we know that you will want to be debt free like so many others have achieved.

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

Fitch Ratings has announced that they expect arrears and possession levels in the UK sub-prime mortgage sector to continue to increase over the next few months...

The agency recently published their latest quarterly performance report for the sub prime mortgage lending sector revealing a deterioration in arrears in Q2 2007 compared to Q1 2007.

The overall UK sub-prime Residential Mortgage Backed Securities Fitch Delinquency Index saw its average value increase 7.7% compared to the previous quarter, largely due to borrowers who entered "teaser" rate loans in late 2005 and early 2006 now coming to the end of their introductory period.
Stuart Jennings, managing director of EMEA RMBS at Fitch:
    "We expect arrears to increase further over the coming months, influenced by the five increases in the Bank of England base rate since August 2006.
    "Those borrowers with LIBOR-linked loans will face additional stress since such loans are due to see their rates reset soon and LIBOR has increased
    "Those borrowers on short-term "teaser" fixed or discounted rates entered into during 2005 and 2006 will be particularly affected as these rates expire and they revert to full rates.
    "Such borrowers will find it much more difficult than before to refinance onto cheaper new deals, as many sub-prime lenders have recently tightened criteria, withdrawn products and re-priced others by as much as 2.5%."--
For more information about selling your home and renting it back click here.

To get your free copy of our updated report on how to avoid having your home repossessed click here .
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News out today that even the banks are getting worried about their own rising interest rates. The Times online has an article about how the leading mortgage lenders are getting worried about the potential of a house prices crash. Because the banks have been busy making so much money from mortgages and especially re-mortgaging ans second charges which depend on the consistant rise of house prices to guarantee the banks' profits, it's not just homeowners who could face meltdown in a house price crash crisis.

Even if the banks repossess your home, they still need to sell it either on the open market or via an auction in order to recover the debt from you mortgage. But if house prices crash then the banks will be less likely to recover all of your mortgage debts on your property. The result? Interest rates and mortgage arrangement fees are likely to increase further to cover the bank's shortfall in profits.

Why should we all care about the banks losing money? After all they make enough! Sure, but it concerns all of us who have a mortgage on our homes because rising interest rates affect us all.

With this in mind it could be the right time now to consider selling your home and renting it back. For the first time in living memory it is cheaper to rent most homes than to pay the mortgage. If you have a good amount of equity in your home you will also get a large lumpsum of tax free cash to spend. Isn't that better than having it stuck in your house only to lose it anyway when the market falls?

To find out more, contact Cash For My House and enquire about our sell and rent back scheme. --
For more information about selling your home and renting it back click here.

To get your free copy of our updated report on how to avoid having your home repossessed click here .
To get your free PDF Home Valuation report Click here
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More and more people are leaving until the last minute before seeking a solution to stop repossession of their home.

Last Friday afternoon I got a call from a very stressed homeowner who called to ask us to stop his eviction order. We do this all the time but the eviction order had already been in place for at least 7 days and the bailiffs were due today (Monday)!

In other words the family had left it until barely a few hours before finding out what their options are. Sad as it is, in this case, this family will be evicted.

I asked the caller why he hadn't called us before because we almost certainly would have been able to help him and his family avoid repossession. He told me that they had had a possession order suspended last year, but then they had not paid their mortgage payments for the last 4 months.

Suddenly, he was amazed that he received a letter from the bailliffs announcing that they would be physically evicting the family and all their belongings within 24 hours.

The point about a suspended possession order from the court is that the possession order is valid, the judge has granted the lender the right to repossess your home, but has agreed to suspend the eviction so long as you pay the agreed amounts each month to repay your arrears. If like our caller, you break that agreement, then the lender does not have to go to court again to get an eviction order. Why? Well, because the original possession order was suspended, but not cancelled.

So, if you find yourself facing a situation like this please contact us right away because your options will be much greater and you can remain in control of what happens to you, your family and your home.

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For more information about selling your home and renting it back click here.

To get your free copy of our updated report on how to avoid having your home repossessed click here .
To get your free PDF Home Valuation report Click here
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Commenting on figures published today by the Council of Mortgage Lenders showing that mortgages are at their least affordable for 15 years, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"Many families are now struggling to meet interest payments as house prices and interest rates continue to rise. The ominous warning today from Mervyn King suggests there is at least one more rise in interest rates to come.

"Gordon Brown has been extraordinarily lucky so far, but a combination of an economic slowdown and higher interest rates could spell disaster for large numbers of heavily indebted families.

"A generation of young people are now finding it impossible to get onto the housing ladder except by borrowing at levels which are ludicrous and dangerous. Unfortunately some mortgage lenders are inviting disaster by doing just this.

"If interest rates rise further, many home owners will simply not be able to pay. The figures over the last two years show that although we are not yet at the crisis levels of the early 1990s, the number of repossessions and repossession orders is soaring."

Applicability: this item refers to England and Wales. Due to devolution, detailed policy may be different in other areas of the UK.
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For more information about selling your home and renting it back click here.

To get your free copy of our updated report on how to avoid having your home repossessed click here .
To get your free PDF Home Valuation report Click here
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For many people the first day of the month signifies the unwelcome arrival of the monthly bills. For many of us recently, the mortgage bills have been rising at an alarming rate. At the end of each month as letters start to arrive from mortgage lenders either telling you about the latest interest rate rise and what it means to your monthly payments, or pointing out that you are in arrears and bheind with your payments.
For the unlucky few these letters may even come from the lender's solicitors advising you that the mortgage company is going to take you to court for repossession of your house.
This month we've had more calls than ever, and more enquiries from our website than ever before.
In most cases we are able to help directly, and even in those we can't we can help indirectly, with free advice based on our experience in dealing with many families in this situation.
The main thing to remember is that the earlier you take control of the situation the more chance you have to remain in your own home.
Leaving it unitl the week of a court order eviction gives everyone very little time to help you. having said that, we can often stop eviction orders even at the 11th hour.
For more information about selling your home and renting it back click here.

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House price rises that year on year have forced first time buyers out of the market are set to fall dramatically according to some of the world's leading financial commentators.

House prices have risen massively in the last 5 years, whereas rents have stayed almost the same during the same period.
Once upon a time, it made sense to buy a property and you could be paying less each month than the equivalent rent.
These days, with the average house at around ￡200,000, and the cost of a reasonable mortgage from a reputable lender costing around ￡600pcm for every ￡100,000 borrowed, the average buyer with an 85% mortgage could be paying one and half times the average local rent, without even factoring in the costs of insurance, mortgage indemnity fees, arrangement fees, early repayment penalties when you sell, and general maintenance. All things that you don't pay for when renting!

If this is true, then now might be the right time to sell up cash in on some of your equity, pass the management of your home onto someone else and pay less each month, giving you more money in your pocket for the things that matter to you and your family. Holidays, cars, eating out, hobbys and pastimes.

For more information about selling your home and renting it back click here.

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This week I've been helping a number of families and sellers with problem properties.
For one of them though, the call to Cash For My House came just a bit too late. Don't leave it until your home has been taken from you before you decide to do something about it!

Mr R.B. from Kent is a retired army captain who since his divorce had lived alone in a new build 2 bed flat in a Kent coastal town.
Mr R.B. was targeted by a gang of local youths who tried to get him to buy cigarettes, alchohol and other substances banned to under 18s. When he refused he was systematically targetted by the gang who threw objects at him, terrorised him at night and even urinated through his letter box. He decided to rent another flat and move away from the area, in the process leaving the mortgage on his previous flat unpaid for months.

Mr R.B.s reason for this was that he felt he needed this money to pay rent in his new flat away from the problems of the old one.
However, by not dealing with the situation at the time, selling the flat or renting it out, the mortgage company repossessed the apartment, and Mr R.B. didn't even know because he hadn't informed his lender about his problems, so they sent the letters to the old address.

Suddenly Mr R.B. realised he had to act. I made him an offer for the flat that he was extremely happy with, but after making the local searches, my solcitor told me that Mr R.B. wasn't actually the owner of the property!

Unfortunately for him, the flat was now the property of the mortgage lender and the sale of it was totally out of his hands. So, if the lender's agent didn't sell the flat for more than he owed the mortgage lender, he would be liable for the short fall in between the sale price and the amount he owed the lender for up to 12 years!

To avoid repossession and find out about selling your home and renting it back, click here
Here's another chance to download your free guide to help you understand the repossession process in the UK. This free repossession report also shows your options to avoid losing your home.
Get your FREE step by step guide here.
Click here to download your PDF report
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Families and property

Inheriting a property is not without its problems. In an ideal world, the person who has left the property to their heirs will have a clear will and testament and have prepared for this eventuality.

The reality can often be very different. When death occurs through accident or sudden illness, or where the heirs have other unconnected problems then the inheritance can be a minefield.

Where the family members may have issues with other heirs, even agreeing on instructing a lawyer can be hard.

In these cases, it can often be easier to bring in a disinterested third party to sort out the situation. A fast cash sale can often be the best way to divide the value of the inheritence, the profits then being shared amongst the heirs or held in trust by a solicitor for sharing at a later date (for example after a legal dispute has been settled).

For more information on your options on inheriting property clickhere

More tales of repossessions stopped

This week I've been working to help and middle aged ex-health worker who after giving 3 decades of service to his employer and, of course, to his patients recently lost his job in health service cuts.

Losing his job lead to this client becoming very anxious about his future situation and the home he had occupied for 20 years since the death of his parents. As with many people, the client in question was not sure where to turn for advice and had begun to live in fear of one his creditors taking out a repossession notice and obtaining a court order to repossess the house.

Originally, the client contacted me after downloading the Stop Repossession Now PDF document from our website which explains the eviction and repossession process in plain terms for those who have never experienced the nightmare of being repossessed. In this case it wasn't the lender GE Money who were chasing arrears but a second charge, sub-prime lender of the type who advertise on daytime TV - no names necessary.

I was able to offer the client the chance to stay in his family home, to rent back at a market rent and from the sale of his house not only become 100% debt free but also have a large lump sum to invest for his future. On top of he has the right to buy back his home at a future date at a discounted price.

For anyone in a similar position, sell and rent back could be the answer, provided you have enough equity in your home.

As always my advice was free...

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

A week is a long time in our day to day lives, but a very short time indeed if you are facing repossession of your home.

In the past seven days I've been trying to help a number people from all different backgtrounds and circumstances to stop repossession of their homes and properties.

One of those was a Buy to Let landlord with a five or six properties in the South East that were paying their way, but one in the Midlands that was facing repossession. The reasons were fairly unsurprising when the landlord told me more about the property.

First Reason
It was a 3 Bed townhouse in a brand new development that is still being finished in stages. Seven of the properties in the same terrace had recently been repossessed and sold off by the lenders' via Estage Agents closed bid auction. These properties were being sold at a discount, whereas the landlord was trying to sell his at full market value.

Second Reason
As the estate was still being finished there were also dozens of brand new properties for buyers to view and many of these come with builder's deposits paid, or other cashback deals. This also means that there are fewer borderline tenants ready to pay top dollar for a 3 Bed house when they could get a mortgage with almost no deposit necessary, or at the other end of the scale rent a smaller 1 or 2 bed flat in the same development. The competition between all these landlords also meant that our landlord had not been able to find tenants for over 3 months.

Third Reason
No equity. The landlord was effectively 91% mortgaged, so in order to pay back the mortgage lender from a sale he was looking to sell for almost full market value. However, as we have seen there were still some of the 7 properties in the same terrace for sale after repossession for around £20k less.

Buying a buy to let investment property in a large off plan development is a serious no-no. You are buying into an area where there will be guaranteed competition for renting when the properties are finished, always new properties coming onto the market with their fresh decor appeal, and it's so hard for even mortgage lenders to value new builds off plan that some mainstream lenders like Portman Building Society won't even give you a mortgage for them anymore, at least until the housing market settles in the area.

Stop Repossession
So our landlord was facing repossession. If he didn't stop the repossession from taking place, he would be certain to have a difficult time ahead. He would not get any remortgage on his other properties, he would not be able to buy any more properties, either.

Some reading may think 'oh well, landlords being repossessed - it's not the same as families, is it?'. However, most people in the UK who rent, rent from private landlords. Renting now is often the cheaper option than paying a mortgage on the same flat or house. If our landlord gets repossessed, then the families who live in his houses will also be kicked out.

That in itself has dire impact on family, jobs, cost of transport, finding new deposits for a new home etc, so even landlord buy to let repossessions don't exist in a vacuum.

Repossession wherever it happens can be devastating for many people indirectly.

As it happens, in this case, I was able to use my network of contacts to find a young couple who were looking to buy in that area, and with the 5% discount that the landlord was looking for would be able to effectively get a mortgage without a deposit. Let's hope it ends well and out landlord doesn't get repossessed and his other tenants don't suffer!

As always my advice was free...
Here's another chance to download your free guide to help you understand the repossession process in the UK. This free repossession report also shows your options to avoid losing your home.
Get your FREE step by step guide here.
Click here to download your PDF report
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Here's another chance to download your free guide to help you understand the repossession process in the UK. This free repossession report also shows your options to avoid losing your home.
Get your FREE step by step guide here.
Click here to download your PDF report
(Free Adobe Acrobat Reader needed)

I found this interesting piece online today about repossesions in Wales being the highest in the UK.
Increase in court claims against homeowners in Wales is twice as high as in England

Wales is becoming the UK’s repossession hot spot, with court action started against homeowners to repossess their homes soaring by 26 per cent in the past year.

The figure is twice as high as that for England, underlining the increasing affordable housing crisis in the country.

Between 2005 and 2006, the number of claims issued for repossessions in Wales increased from 6,559 to 8,294, according to figures from the Department for Constitutional Affairs. In England the increase was 13 per cent, from 108,795 to 123,387.

Figures for repossession orders, which do not always result in a repossession, increased by 55 per cent in Wales.

Shelter Cymru director John Puzey said this figure pointed towards an increase in actual repossessions.

A combination of low wages and high house prices in Wales was making homeownership increasing difficult, he added. ‘The Welsh have a lower than average income than residents in the UK, but the ratio between house prices and income is much lower in Wales.’

Housing markets were also being distorted in rural areas by a trend for people to move from urban areas to the countryside.

‘It distorts the local market,’ he said. ‘Those with the lowest income often live in areas such as Pembrokeshire, with the highest house prices.’

Mr Puzey said there were tensions between those in rural areas who felt priced out of their homes by settlers moving from large Welsh cities or England who could afford high house prices.

‘There are concerns in rural areas about local communities,’ Mr Puzey said. ‘People brought up there can’t afford to stay and there are worries about the language being lost and that [its] characteristics are changing.

‘Some local authorities were trying to deal with that, but it’s difficult to see how you can within the open market.’

If you need a quick cash sale so that you can repay your debts and stop repossession, please contact us today for your free home valuation report and no obligation offer click here

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

This week I've been helping a family in the Midlands who despite having bought their home 7 years ago when interest rates where at their lowest since the war, the family have, like so many of us, continuously remortgaged to fund an ever increasingly expensive lifestyle. We not talking about fast cars and luxury here either, but just the constant rise in the cost of living in the UK.

This family had been trying to sell their 4 bed house near Birmingham for 4 months. The estate agents had listed the property in such a slapdash manner that it's no wonder they've had so few viewings on their property. Last month they had an offer but as is so often typical when interest rates rise, the buyers wobbled and pulled out at the last moment.

Last year the family had had a court order to repay some mortgage arrears to their mortgage lender on top of their monthly repayments. This extra payment coupled with the last two rate rises and growing credit card debts that need consolidation, plus the mortgage lender making noises about new arrears and possible repossession, has suddenly put the family in the position that they had to sell fast.

Having viewed the property I made them a cash offer that would cover all their debts, repay the mortgage and (they decided to rent in future) pay the rent on a similar property in a town nearer to where the parents work for at least a year.

With the price agreed, we exchanged within 24 hours, which kept the mortgage lender happy, and completion is due in a couple of days.

No more mortgage arrears stress, repossession stopped, credit cards paid off, debt free and with a year's free rent. It won't be long before the family are back on their feet and with savings in the black again.

If you need a quick cash sale so that you can repay your debts and stop repossession, please contact us today for your free home valuation report and no obligation offer click here

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

This week I had a client who had a very small mortgage against a property worth £130,000.
However, like many people he had fallen into the common trap of slick sales agents from loan consolidation companies and had been convinced to turn his unsecured credit card loans into a whopping £70,000 secured loan.
This Secured loan carried an atrociously high interest rate. The client in question was absolutely convinced that selling his property and renting it back was the only way forward. Sell and rent back deals are often the answer where the home owner has enough equity in their property and their debts can be renegotiated by us on their behalf.
But this client really didn't need to be selling his property.
Instead, I pointed him in the direction of a couple of well respected mortgage brokers and suggested he remortgage his home with a good lender at normal interest rates that this would cut his monthly outgoings by half, without needing to sell and rent back. Of course there is always the possibility that some previous credit history may mean that the client cannot obtain a mortgage at reasonable rates.
If that happens, then sell and rent back will still be an open option and he will still get to remain in his own home for many years to come.

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

After a relatively quiet January, since the beginning of this month we have been inundated with requests for help from families all over the UK asking for help to stop repossession. Following on from the previous postings here, the trend is alarmingly similar. Loan companies (and mortgage lenders to a lesser degree) seem to be repeatedly overvaluing properties for remortgage or consolidating loans. As the last mortgage interest rate has kicked in, many people are finding that they are missing their monthly payments, and as a result receiving the dreaded letters for threat of eviction due to repossession.
In some cases, even when the family involved realises that they must sell their house to stop repossession taking place, there is so little equity left in the property after the mortgage and loans have the early repayment penalty (redemption figures) included that they stand almost no chance of being able to recover any money from the sale of the property. However, even selling the property and moving into rented accomodation is better than facing forced eviction and repossession, simply becuase of the social stigma and the harm it does to your credit rating, making even renting difficult as most landlords will run a credit check before they accept a new tenant, and few will accept tenants with a proven track record of non-payment of mortgage, even if the reasons are outside of the family's control.
In cases where the mortgage is relatively low compared to the amount secured on a so called '2nd charge'then there can usually be a solution in selling the home and renting it back. This is something we are able to offer to most people, and often with the option to buy back the property at a later date, but at a price fixed today. In other words, in 3 or 5 years time, the property could be worth 10-30% more, making the option buy back price a significant discount, and much easier to get a mortgage against.

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

Last week I wrote about the situation facing an elderly couple in Yorkshire who over the last couple of years had slipped into the negative equity trap. This week, another example, again due to the recent interest rates rise. This time it was a family in Somerset. When they bought their home they were more than comfortable paying the mortgage at 3.75%. Now the rate is up to 5.65 and they are struggling each month.
This struggle has inevitably led to mortgage arrears and now a court date for repossession is looming just a few short weeks away. In cases where people have debt where the lesser portion is the first mortgage and the greater part from consolidated loans or other secured debts, it can be straighforward for us to reduce their overall debt to such a level that they can sell their home and rent it back (and, importantly pay a lot less than their current monthly outgoings). However, when the main mortgage makes up the bulk of the debt, the mortgage lender is very unlikely to accept a reduced settlement so that the family can stay in their home.
The banks in this situation are keen to repossess, and most courts will agree with the banks and grant an order if the homeowner cannot show that there is a definite sale on the table that will cover the debts secured against the property.
This family spoke to their mortgage company to try to extend to mortgage period, thereby reducing their monthly outgoings. Apparently, the reaction of the 'help desk' receptionist was to laugh and say 'no' in very definite terms. This family are now facing a dilemma. There is not enough time to sell their property on the open market, and they owe too much money to make a sell and rent back scenario work (the rent would be almost as much as the current monthly payments). With all the will in the world, it's hard to see how the court will allow them more time to pay their mortgage arrears and how this family can avoid the stigma of repossession. In most cases I have been able to find a solution that works for us as well as for the homeowner, and when that happens, everybody is happy and people can get on with their lives.
One of the biggest problems when facing mortgage arrears, repossession and debt problems is leaving it to the last minute before trying to find a solution. Time is the enemy if you are facing a repossession order or court date. I fear that more and more people are going to be in this terrible situation of not only facing repossession but also so heavily mortgaged that their options are almost non existent unless they act in good time to try and find a solution.

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

This week I have been trying to help a family in Yorkshire to restructure their finances and finally get free of the debts that they had been building over the last six or seven years.

We'll call them the D Family. Like many people the D Family had used credit cards to fund an increasing more and more expensive lifestyle. We're not talking spendaholics here, just a pretty basic lifestyle that included the odd inexpensive holiday, some car repairs, and, spurred on the by recent TV obsession with improving our homes, a full set of new double glazing.

All was well until Mr D. was told that there would no longer be overtime at his workplace, the gas and petrol bills soared, and horror of horrors, their house actually stopped going up in value and has remained static for the last 8 months.

Having seen one of the many TV ads for loan consolidation, the D Family decided to put all their loan eggs in one basket, plus 'a little' bit more to help them with their current bills. All this secured with a second charge against their 3 Bed family home in a small Yorkshire town. The problem is that in order to meet their sales targets the loan consolidation company (who shall remain nameless) allowed the D Family to borrow up to 97% of the value of their property.

The result is that in an area where the actual sales prices of homes are 96% of asking prices, the D Family have now just slipped in negative equity. Not by much to be sure, but a few thousand pounds. Many have lost their homes to repossesion for less.

I'm currently trying to re-negotiate the family's debts with their secured creditors. Mr D is certainly feeling the strain as his job looks increasingly insecure. Many people in their position are luckier - they have a relatively large amount of equity in their homes.

Of course the thing is to avoid remortgaging to the absolute maximum. For many the solution of selling their home and renting it back can be a breather, especially with an option to buy back their home at a future date. With this kind of option not only are they not borrowing more money (at higher than normal interest rates) but often actually come out of it with a cash lump sum. Most people having come this close to repossession will completely change the way they look at debt and credit cards in the future, which can only be a good thing.

Mr D and his Family are keen to sell their home and rent it back as it would cut their monthly outgoings in half. But, right now, their debts are more than the mortgageable value of their home. We will try to get their debts reduced but the Family are facing an uncertain future with UK interest rates set to rise again this month.

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

The number of families threatened with homelessness as a result of mortgage repossessions has risen sharply in the past two years with repossession cases seen by Shelter advisers more than doubling.
Figures from the Council of Mortgage Lenders reveal that homes taken into possession rose from around 10,300 in 2005 to 17,000 in 2006. The council predicts the figure will shoot up again this year, as higher interest rates begin to bite. It is forecasting 19,000 repossessions in 2007 and 20,000 in 2008.
The council said the greatest impact was due to the growth in lending to people with poor credit records who are more likely to fall into arrears.

Responding to the latest figures, Shelter chief executive Adam Sampson said:
'Spiralling house prices, created by a desperate shortage of housing, are forcing more families to overstretch themselves to get on the property ladder.'
Mr Sampson added:
'The massive rise of 65 per cent in mortgage repossessions means thousands more hard working families face the nightmare of becoming homeless.
'Mortgage arrears and repossession problems seen by Shelter have more than doubled in the past two years, and we received more than 70,000 hits on our repossession web pages in 2006.'
'We are calling on mortgage providers to be more responsible, particularly when lending large sums of money to vulnerable people on low incomes, and urging the Government to increase support to help families keep a roof over their heads.'

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

We have prepared a free guide to help you understand the repossession process in the UK. This free repossession report also shows your options to avoid losing your home.
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BBC reports bankruptcies rise by nearly 60%
Personal insolvencies reached 107,000 in England & Wales
The number of people who were declared insolvent in England and Wales rose to a new record of 107,000 last year.
That was a 59% increase on the year before, when 67,500 people went bust.
The rise was mainly due to a sharp increase in the number of people entering individual voluntary arrangements (IVAs).
The number of individual insolvencies also rose in Scotland and Northern Ireland, though not as fast as in England and Wales.
It is widely expected that the rising trend of personal insolvencies will continue this year.
But Pat Boyden, an insolvency specialist at the accountants PricewaterhouseCoopers, said he doubted that the increase would be as fast as in 2006.
"I wouldn't predict a huge increase this year - though the recent increases in interest rates may put the squeeze on unsecured borrowing," he said.
Bankruptcies, in which debtors typically lose all their assets, rose last year by 34% in England and Wales to 62,900.
But although these still outnumbered IVAs, the number of people choosing an IVA as a route out of insolvency more than doubled to 44,300.
If you are facing repossession or struggling to pay your mortgage and/or secured loans why not sell your house and rent it back? You can buy it back from us later when you're back on your feet. Find out more visit Cash For My House

We've prepared a free guide on how to avoid repossession and clear your debts at the same time without borrowing more money. Bankruptcy or IVAs are not the answer

Click Here to download the PDF file.

The number of properties repossessed by lenders has continued to rise sharply, up 9% in the second half of 2006, the BBC reported yesterday.

"The Council of Mortgage Lenders (CML) says 8,860 homes were taken back, up from 8,140 in the first six months of the year.

It means that more properties - 17,000 - were repossessed in 2006 than in any year since 2000.

Although the figures have nearly tripled in the past two years they are only 0.15% of all current home loans."

'Prospects worsen'

"Repossessions are likely to creep up from around 17,000 last year to 19,000 this year and 20,000 next year - higher than the low of 6,030 in 2004, but still only around a quarter of the 1991 peak of 75,540," said the CML's director general Michael Coogan.

"This reflects a slight worsening in prospects as a result of higher interest rate expectations since the previous forecast," he said.

The Royal Institution of Chartered Surveyors has also warned that repossessions will rise.

David Stubbs, senior economist at the RICS said: "The RICS expects repossessions to rise further as the impact of the recent increases in interest rates takes its toll and homeowners struggle to repay their mortgage loans."

If you are facing repossession or struggling to pay your mortgage and/or secured loans why not sell your house and rent it back? You can buy it back from us later when you're back on your feet. Find out more visit Cash For My House

Between 1990 and 1993, 247,000 home owners lost their homes as house prices slumped and unemployment rose to record levels.

The BBC recently published a debt diary on their website detailing the problems that successful IT consultant Sayara Beg was having whilst facing mounting debt and threat of repossession. It all started when Ms Beg was sacked from her job. Claiming unfair dismissal when her employer refused to allow her to take maternity leave, Ms Beg soon encountered serious financial implications when her monthly outgoings began to rapidly outstrip her income and savings.
One of Britain's booming group of private buy to let landlords, Ms Beg came very close to having her buy to let property repossessed.
Unaware that help could have been close at hand when she needed a very quick sale in order to pay off her mounting debts, she seems to have followed the course that many people take when faced with the very real and extremely stressful prospect of repossession, take. That is, she tried to negotiate her way out of the problem with her creditors.
However, as you can see by reading her online BBC diary (http://news.bbc.co.uk/1/hi/business/5241290.stm) Ms Beg became seriously stressed indeed.
If you are faced with a situation like this, then often the answer is to sell your property quickly for cash, and free up the equity in order to pay off your creditors. Whether you are a buy to let landlord feeling the pinch of rising interest rates or a homeowner that wants to sell and then rent back your home until you get straightened out, then contact us now by clicking on this link to find out more Stop Repossession Now for free confidential advice.

According to statistics published by Abbey one of the UK’s top mortgage lenders, repossessions of homes in the UK are set for a dramatic rise in the first 3 months of 2007.
The problems of over extended credit card debts, those losing jobs and unable to afford their monthly mortgage payments, the increase in divorce and separaration amongst homeowners are all causes cited as boosting the numbers dramatically since the same period in early 2006.
Many people who fall into mortgage arrears or arrears on a laon secured against their property often make the situation worse by failing to act in time. Most repossession orders can be stopped if action is taken quickly. To find out more visit Stop Repossession Now for free confidential advice.

Repossession can be an extremely stressful event in your life. Even just the threat of it can cause a great deal of concern and anxiety.

Once your property has been repossessed it can be very difficult for you to obtain another mortgage or other kinds of credit like bank loans or credit cards.

Your credit rating can be downgraded making it very hard for you and your family to start over again. You could stand to lose everything you have worked hard for over the years.

If you have the threat of repossession hanging over you, then the best way to avoid being caught in this trap is to sell your house quickly to a cash buyer.

This should enable you to pay off your mortgage lender and very often leave you with a lump sum over and above your mortgage repayment.

Unfortunately, just putting your house on the market with an estate agent is no guarantee that you will be able to sell in time before the mortgage company decides to repossess.
To find out more visit Stop Repossession Now for free confidential advice.