Surveys reveal Brexit hitting south of England and London house prices

Brexit has played a negative role in house prices in southern England as new data revealed downturn in the market since the 2016 referendum.

Leading up to the vote house prices across the south of England powered ahead achieving an increase of £1.04tn in the value of housing stock.

But since the June 2016 vote things have not been as impressive as the value of housing in London, the Southeast, East and Southwest regions, has risen by 4.3 per cent or £192bn, less than one-fifth of its growth in the previous three years.

The estate agent which carried out the research (Savills) states that the value of housing in London has fallen in the past year by £40bn (down 2.2 per cent), while the Southeast has dropped by £7bn (a fall of 0.5 per cent).

That is worrying because it means that over the past three years, there has been a £6bn drop in London values.

Looking at the 406 local authorities that make up the UK, Savills found 40 of these local markets had seen the value of housing stock decline since the Brexit vote, by just under £50bn.

Savills’ research included data from the Office for National Statistics, Land Registry and Registers of Scotland.

Director of residential research at Savills Lucian Cook claims political uncertainty over Brexit had fed into the housing market in the three years since the vote, potentially triggering a longer-term change in the market cycle.

“Given the extent to which London is priced relative to the rest of the country — the extent to which it had pulled away from the rest — the Brexit vote may well have been the catalyst for a shift in the market.

“We face heightened uncertainty over what a new prime minister will mean for Brexit, the economy and, critically, tax policy, which suggests the prime markets will remain price sensitive across the remainder of 2019,” he told the Financial Times.

There was more disappointing news as according to new figures property sales across cities in southern England have fallen by 13% on average since 2015.

A new Zoopla index – which looks at the UK’s 20 biggest cities – found homes have fallen by 13% in three years.

On average, sales increased by 6% across cities in northern England over the three years.

Sales in London and Cambridge are down 20% on 2015 levels.

By contrast, transactions in Liverpool have increased by 19% over the same period and those in Newcastle have increased by 5%.

As well as a big jump in sales, Liverpool also had the strongest annual house price growth in March among the 20 cities in the index, with a 5.7% year-on-year price increase taking the average property value there to £122,100.

Leicester, Manchester and Glasgow also recorded house price growth of 5% or slightly more in March but homes in southern England were not good.

And prices are likely to continue falling for another six months in the UK and for the whole of 2019 in London and the south-east, according to another industry survey.

Separate official data shows that rents are also falling, with tenants typically paying £757 a month, down from £772 a year ago, continuing a pattern of declines that began after the Brexit vote in 2016.

The Royal Institution of Chartered Surveyors (RICS) said that its poll of surveyors found a subdued picture across the UK, with sales weak and an eighth successive month of falling inquiries from buyers.

The average time it takes to sell a property remains unchanged at 19 weeks, the joint longest period since the RICS started recording the data in 2017. It added that it takes longest to sell a home in the south-east of England, at 21.5 weeks on average.

And house prices in London are falling at the fastest rate in a decade.

According to the Nationwide House Price index, prices over the first three months of 2019 in London dropped 3.8 percent in value, compared to the same period in 2018. The biggest drop since 2009.

The average house price in London during the first quarter of 2019 was £455,594, according to one of Britain’s biggest mortgage lenders.

England recorded its first annual price fall since 2012, with prices down 0.7 percent when compared to the first quarter of last year. Scotland, Wales and Northern Ireland all enjoyed price gains.

A recent survey of U.K. residential property from the Royal Institution of Chartered Surveyors (RICS) concluded that Brexit is currently the main obstacle for market activity.

More than the three quarters of estate agents that were asked, said uncertainty over how the U.K. leaves the European Union was holding back both buyers and sellers of property.

And with house prices struggling in southern England, people in negative equality will wander how they will escape from their property trap?

But what is negative equity?

A property is in negative equity if it’s worth less than the mortgage secured against it.

An example of this if you had bought a property for £180,000, with a mortgage for £165,000 and the property is now worth £100,000, you would be in negative equity by £65,000.

It’s estimated that there are around half a million properties in negative equity across the UK, although some areas are affected far more than others.

Here CD Fairfield Executive Director Phil Davison explains what www.negativeequityuk.co.uk can deliver for their clients.

“As a client of CD Fairfield all options in the UK property debt market are available to you here. We are the only company in the UK at this present time that offers that scope of service,” he added.

But many people wonder why would a bank write-down a debt?

“We get asked that question all the time and the answer is quite simple. In the first instance, the bank lent money based on affordability criteria.

“If one of our clients’ affordability has changed due to circumstances beyond their control then the banks are obliged to look at it again.”

“If you find yourself in negative equity what is the first step in the process of getting you back on track?

“A case review consists of three separate pieces of work. The first piece of work is to establish “how did we get here? “

“The second piece of work is “where are we now?” and what is our current state of affordability? And the third piece of work is what is the best way forward.”

And what protection will you have if you use CD Fairfield?

“The protection you have as a customer of CD Fairfield is that we are authorised and regulated by the Financial Conduct Authority for all our work in the UK.

“This means that we are submit to stringent regulation and reporting measures, as well as clients having access to the Financial Ombudsman Service if they are unhappy. You can have total peace of mind about the work we do,” Davison added.

Speak to Bob today on 0161 660 4403 to see what Negative Equity Solutions we can offer you.

A Fifth Of UK’s Homeowners will still be paying their mortgage in retirement

According to recent figures a fifth of UK’s homeowners will still be paying off their mortgage after they stop earning a wage – with many of them living in a negative equity house.

The startling figures reveal the legacy of interest-only loans and delayed first-time buying are starting to kick-in as these loans start coming to an end.

In worrying figures, in the UK alone around three million people now expect to still be repaying their home loan after the current state retirement age of 65 – research from online broker L & C Mortgages has found.

High house prices, interest-only and part interest-only borrowing, and getting on the housing ladder later than previous generations all play their part in delaying the day homeowners pay off the last of their debts.

And a third of mortgage holders believe they will be older than they had expected by the time they clear their debt – often because they’ve had to cover the costs of raising and supporting a family.  It seems the bank of Mum and Dad is still going strong!

And around 60 per cent of those who will still have an outstanding home loan in retirement have no plan in place as they get older for paying off their mortgage once they stop earning – which is a worrying statistic.

That’s a major concern as it could leave many of the UK’s older generations having to exit the property market in retirement altogether.

And David Hollingworth from L&C said: “The fact that people increasingly have to work beyond their standard retirement age to pay off their mortgage is a concern.

“Many will see a dip in income post-retirement which could pose affordability issues for older borrowers. Although homeowners will, and should, continue to aspire to pay off their mortgage before retirement, the reality for many could mean having a mortgage for longer.

“It’s clear that homeowners will shift their priorities depending on family needs. For example, so many first time buyers are reliant on the Bank of Mum and Dad. However there still needs to be a clear focus on the repayment of the mortgage, to avoid reaching a point that could force the sale of the family home.”

And more worrying news as 40 per cent of all those on an interest-only or part interest-only mortgage believe they will not be able to pay the remaining sum once their term ends.

When former interest-only mortgage holders have managed to pay off their loan, almost half relied on endowment policies and a third used savings or investments to do it.

“Repayment of an interest-only mortgage that once seemed a million miles away may now be looming large for those that haven’t set capital aside,” adds Hollingworth.

“That may force the need to refinance and extend the mortgage term. Mortgage options for those that can demonstrate ongoing affordability are growing in number so it makes sense to seek advice sooner rather than later.”

CD Fairfield has a 99% score with www.reviews.co.uk and excellent relationships with lenders throughout the UK. As such, we’re here to lend a helping hand and offer solutions to free you from your negative equity.

And CD Fairfield Director Tom Cardwell explains why it is a good idea to sort out your negative equity house sooner rather than later.

“If it is an issue, you have to deal with it sooner rather than later. Hopefully, the stigma attached to the issue has reduced over time.

“We are very active in putting out good content in terms of what is happening in the industry and where the mortgage market is at.

“Ans it would have been very difficult to purchase a property 10 or 12 years ago and not be in negative equity today.

“So it wasn’t that people in negative equity have made some horrendous financial choice, or some reckless financial decision.

“They simply bought a property at the wrong time. It was just a matter of timing. First-time buyers in the last six or seven years don’t have this problem. They don’t have to worry about it.

“And it certainly is not something that was restricted to those with low incomes. We have clients where the household income was well in excess of one hundred thousand pounds.

“But they still have a debt issue and it is something that they will have to address. The first thing to do is recognise there is a problem.

“The second thing to do is seek some assistance and the third thing you have to remember is that the client was a victim of an economic crash and it is not something they have done.

“If someone is worried about negative equity? No matter what the level of their negative equity they should get in touch with us. We can put their mind at ease. We can explain to them exactly what their position is and we don’t engage in flannel or false hopes. In an empathetic fashion, we tell people where they stand.”

Here are some reviews from the people we have helped.

M Anderson

“Like many people, my house had been purchased at a time when banks were handing money out like sweets. We had an interest only mortgage and when my marriage ended, we needed a way to separate financially.

“A colleague recommended Negative Equity NI to us, they do every bit of the work required, removing the stress from you. The staff were great and kept in regular contact at each stage.

“In the end, I have paid 11% of the shortfall, with the result that I can now sleep a lot easier! I would and have recommended NENI to others and would continue to do so.”

C Weir

“Lesley has been so helpful, She has shown knowledge on the subject of bankruptcy, very personable and showed me empathy when I was stressed with bankruptcy proceedings. Also all my questions were answered in a timely manner and nothing seemed to much trouble for her. I would have been lost, without her expertise.”

M Bennett

“I would recommend Negative Equity to anyone. I bought a two-bedroom semi-d at the height of the boom for a very high figure. Then came the crash. I got married, had a child and the house was to small for us but not worth even half what I paid for it when put on the market 10 years on.

“The bank simply wouldn’t deal with us so we approached Negative Equity NI. I just wish I had heard of them sooner! They were well worth their fees – spending around £4k saved us over £50k as they engaged with the bank to negotiate our shortfall to a manageable figure we should have paid off in a few years.

“We’re also out of the house, having been able to buy a new one as part of the process. That would never have happened if we’d tried to embark on this on our own.

“We were quite nervous and tentative about going down this route but it certainly paid off and we are very grateful to Tom and Lesley for all their attention and assistance throughout the process. They have lifted a millstone from around our necks and we can now move on.

R Mark

“I first came across negative equity NI while watching tv, they had an advert on! I thought surely this is a con or too good to be true… ITS NOT!!

“Myself and my husband bought back in the boom, the house itself was worth half of what we paid for it and we felt like we were stuck with the negative equity. We are now free!!!

“From the moment we met with the team we knew we were going to get out of the hole we were stuck in, and just last week this happened.

“We got over 60% of our negative equity written off. The team know exactly what they are doing, extremely professional and have fantastic knowledge and the ability to get brilliant results.

“I would like to say a huge thank you to all the team who worked tirelessly to get this end result. Thank you again”

Speak to Bob today on 0161 660 4403 to see how we can help you with your negative equity house.

What is negative equity?

“I’m in Negative Equity,” is something that many of us are hearing and talking about these days.

This is because more and more people have been caught in the ‘negative equity trap’ since house prices feel so rapidly since the highs of 2006/2007.

And it seems many of us are still struggling to cope with the stresses and strains that negative equity brings.

According to a report on www.belastlive.co.uk in May – two thirds of those surveyed in Northern Ireland (69%) say they are really worried about negative equity.

The YouGov survey conducted on behalf of Home Owners Alliance, BLP Insurance and Resi.co.uk discovered that almost seven in ten people in NI are worried about negative equity, compared to half the population across the rest of the UK.

Homeowners Alliance Chief Executive Paula Higgins said of the survey results: “It’s understandable why those living in Northern Ireland are the most concerned about negative equity.

“The market hasn’t yet recovered from the financial crisis of 2008, when millions around the country suffered negative equity. 

“At the time the average house price plunged by 15 per cent – and average asking prices in Northern Ireland are still 30 per cent lower than they were 11 years ago.”

But what is negative equity and how large is the problem?

A property is in negative equity if it’s worth less than the mortgage secured on it.

An example of this if you had bought a property for £180,000, with a mortgage for £165,000 and the property is now worth £100,000, you would be in negative equity by £65,000.

It’s estimated that there are around half a million properties in negative equity across the UK, although some areas are affected far more than others.

In Northern Ireland up to two out of every five properties bought after 2005 are in negative equity.

Worrying times but as a company we have a proven track record in helping Homeowners and Landlords move on from negative equity; our average negative equity write-off is 77% for our clients in 2018 ( where they have sold their property ).

And since 2013 our success rate is 96.6%.

And we also have received a 4.8 rating out of five from independent review site www.reviews.co.uk.

We are currently the only specialist negative equity and property debt company operating in the UK that offers the full range of services that clients need.

When it comes to finding the best solutions to property debt issues, nobody goes further or has more experience than our Negative Equity UK team. We’ve built our team and our business around you, our customers.

As the recognised industry experts in providing innovative property debt solutions, we are authorised and regulated by the Financial Conduct Authority (FCA number 688199). Our expert team consists of banking professionals, Insolvency practitioners, mortgage and finance specialists and chartered accountants

Our staff are trained to be non-judgemental and to act in a manner that is both compassionate and respectful. 

We go the extra mile because we want to make a difference. We want to help you move forward in a positive manner.

We are the recognised industry experts in providing innovative negative equity solutions. Our average property debt write-off in 2017 exceeded £75,000 per customer

And Tom Cardwell (Director at CD Fairfield) believes people should stop blaming themselves for being caught-up in negative equity.

“If it is an issue, you have to deal with it sooner rather than later. Hopefully, the stigma attached to the issue has reduced over time. 

“We are very active in putting out good content in terms of what is happening in the industry and where the mortgage market is at.

“What I really mean by that is would have been very difficult to purchase a property 10 or 12 years ago and not be in negative equity today.

“So it wasn’t that people in negative equity have made some horrendous financial choice, or some reckless financial decision.

“They simply bought a property at the wrong time. It was just a matter of timing. First-time buyers in the last six or seven years don’t have this problem. They don’t have to worry about it.

“It is those who have re-mortgaged or purchased a buy to let property. Or purchased their first home during those boom years. 

“It was all-encompassing. And it certainly is not something that was restricted to those with low incomes. We have clients where the household income was well in excess of one hundred thousand pounds.

“But they still have a debt issue and it is something that they will have to address. The first thing to do is recognise there is a problem. 

“The second thing to do is seek some assistance and the third thing you have to remember is that the client was a victim of an economic crash and it is not something they have done.

“If someone is worried about negative equity? No matter what the level of their negative equity they should get in touch with us. 

“We can put their mind at ease. We can explain to them exactly what their position is and we don’t engage in flannel or false hopes. In an empathetic fashion, we tell people where they stand.”

And Cardwell added: “Negative Equity is only a problem if you have to deal with it or do something about it.

“If you are in a position where you can repay 100% of your mortgage in the remaining term and you have no desire to move, then you don’t have to redress your negative equity problem in the short term.

“They might want to re-negotiate the terms of their mortgage and that is something we can do and help clients with. 

“But predominantly the clients that are approaching us are ones that can afford to service the mortgage debt – normally an interest-free mortgage – on a month to month basis.

“But the level of negative equity in terms of repaying 100% of that debt is insurmountable in the remaining term of their mortgage  

“Also there could be other factors that would be part of the equation. Usually, clients would come to us and they are first time buyers in the boom years between 2004 and 2008.

“They purchased a one or two bedroom house, or maybe even a smaller three bedroom property and they had no children at the time. The house suited them and was perfectly affordable. 

“Now they have had a few children and now the house is impracticable for them to stay in that property. 

“It is just not big enough and an example I use is that if the Housing Executive had been housing them – they would have been rehoused.

“But because it is their own property they are supposed to grin and bear it. But I don’t think that is reasonable?

“The good thing in our terms of our relationship with lenders and they will recognise that, even though a lenders first position is not to help a client in that position.

“But that is not their final decision and there is a responsibility from lenders to treat customers fairly. And putting that across in a compelling way can bring lenders to the table,” he added.

Speak to Bob today on 0161 660 4403 to see how we can help you.

If your house is in negative equity we at Negative Equity UK can help you get the result you are looking for

In the UK in May house prices fell 0.2% from April according to the Nationwide building society, while in Northern Ireland 69% say they are worried about your negative equity house.

These suggest that many homeowners are still stuck in the negative equity trap.

The YouGov survey conducted on behalf on HomeOwners Allicane, BLP Insurance and Resi.co.uk discovered that almost seven in ten people in NI are worried about negative equity, compared to almost half the population across the rest of the UK.

But what is negative equity?

A property is in negative equity if it’s worth less than the mortgage secured on it.

An example of this if you had bought a property for £150,000, with a mortgage for £120,000 and the property is now worth £100,000, you would be in negative equity.

It’s estimated that there are around half a million properties in negative equity in the UK, although some areas are affected far more than others.

In Northern Ireland up to two out of every five properties bought after 2005 are in negative equity.

As a company we have a proven track record having achieved an average write-off of 77% for our clients in 2018.

And since 2013 we have achieved a write-off rate of 96.6% for our clients.

Our service is also 100% confidential and regulated and authorised by the Financial Conduct Authority and we can help.

Many people have questions about how striking a deal about your Negative Equity impacts you and here Tom Cardwell (Director) gives his thoughts on frequently asked questions.

What is the likely effect on your credit rating by a negative equity settlement?

“It is a prime concern for customers who come to us. Most of our clients have more than one property. They have their own home that is in positive equity and they might have a buy to let property between 2004 and 2008 that is in significant negative equity.

“They are concerned about dealing with their negative equity in case it affects their home.

“That is why we employ a detailed case review service to look into the clients circumstances and then look at the options they have. In a vast number of the cases we are able to deal with the negative equity problem without any impact to any other assets the client owns.”

Can I sell a negative equity property and negotiate an agreement if I have other properties?

“This is another common problem that people come to us with as they have one or more properties in negative equity. They might also have no debt on a property and maybe one that is in significant positive equity.

“Once we have completed our review process we will have a good idea what kind of settlement and deal that can be done with those properties and their negative equity.

“In the majority of circumstances there is no detriment to the equity in other assets,” added Cardwell.

How do you know how much my settlement is going to cost?

“Having completed hundreds of negative equity samples over the last few years we have a good understanding of what is needed although these differ with each case.

“At any one time we could be dealing with over 700 live cases with a variety of lenders. At the very start of the process we complete a case review for you.

“And in that process we access your current and future affordability and look at the level of your negative equity. Look at who your lender is and look at your documentation.

“We pull all that information together and that will give us a good indication of what it will cost you to end your negative equity debt and you will be free of it.”

How much does a negative equity settlement cost?

“The cost of settling negative equity differs depending on your affordability, your age, your health, which lender we are dealing with.

“And it also depends on the terms around the settlement itself. In the vast majority of cases we negotiate a debt reduction of 75% or more of the negative equity sum.”

Is selling a negative equity property the only option?

“Sometimes selling a negative equity property is not always the best option. When we complete a case review we look at all the available options for the client.

“And what makes us unique in that field is that we have a FCA license as well as having permission to negotiate financial settlements for clients, we also have a credit broker license so we can propose a new way forward to the deal is that is appropriate,” added Cardwell.

And the proof that we deliver on what we say can be seen at www.reviews.co.uk

Here are a few examples of people we helped out of their negative equity problems.

Stewart – “I highly recommend this company. We were told exactly what would happen and there was guidance every step. Once the initial paperwork was completed we didn’t need to do anything.”

Denver – “I found they gave a helpful service. They helped keep stress levels down and understanding of our situation. Would recommend them for people in hard financial situation with their homes.”

D&E “Got us a fantastic outcome. Over £100,000 of negativity equity and unsecured debt settled for £27,000. Onwards & upwards.

As the leading negative equity company speak to Bob or Neil today on 0161 660 4403 and see how we can help you.

Have You A Negative Equity Mortgage?

If you purchased your house around 2006 – 2008 and find yourself in Negative Equity but according to an article on Net House Prices even people who took their mortgage out in 2014 would find themselves in negative equity if there was a 10% drop in house prices. With the increased uncertainty around Brexit the continuation of the current drop in values it is a real possibility.

Negative Equity UK which is part of the CD Fairfield Capital Group are the leading experts when it comes to negative equity.  If you find yourself in this situation do not worry as we have helped hundreds of families all over the UK achieve a mortgage write off in order to allow them to negotiate a new mortgage or move to a new home.

We can carry out a bespoke case review that takes into consideration each client’s individual circumstances and provide our clients with a range of options on how they can solve their negative equity problem.  We are proud of our net promoter score of 90% and the independent rating of 4.88/5 from our clients, this results in us being the highest independently rated debt management company in the UK.

With a dedicated and experienced team of financial advisers and insolvency practitioners in-house we are also the only negative equity company in the UK to be approved and regulated by the FCA on all the options available to help you with your negative equity problem.

Negative Equity UK was started by Phil Davison & Tom Cardwell who have over 20 years of combined experience between them in the property and financial sectors.  With our average mortgage write down of over £75,000 and a success rate of 96.6% we are sure that we will find the right solution to allow you to move on.  So if you are looking for a negative equity mortgage solution get in touch today on 0161 660 4403 to see how we can help you achieve a mortgage write down.

What Is Negative Equity

What is Negative Equity?

Negative equity happens when something is worth less than the finance (mortgage or loan) taken out to purchase it originally.  It is a common problem after the housing market crashed in 2008 but as the housing market has never recovered to the 2008 levels hundreds of thousands of people still find themselves still in negative equity.

What Does Negative Equity Mean?

While your home is in negative equity you will find it difficult to borrow money against the property and will also struggle to sell the property in order to move to a new or bigger home.  At Negative Equity UK with over 20 years of experience in the property and financial  sectors they have helped over 750 clients achieve a mortgage write down through negotiating with your mortgage provider.  Their average write off is over £75,000.

How to Get Out of Negative Equity?

Negative Equity UK (part of the CD Fairfield Capital Group) are one of the highest rated debt management companies with a 90% NPS score and 4.88/5 stars on the independent reviews.co.uk website.  As one of the only property debt companies in the UK which are authorised and regulated by the FCA to offer the full range of options available to get you out of your negative equity situation.

How can I refinance my home with negative equity?

There are options available to you if you are looking to refinance your home even if it is in negative equity.  Speak to us today on 0161 660 4403 to see how we can help you.  We can even look into whether you were mis sold your mortgage.

How To Get Out of Negative Equity Home?

If you are in a negative equity situation and looking to find out your options have a no obligation and confidential chat today on 0161 660 4403. You can also read some of the case studies and amounts of debt write off’s we have achieved for a selection of our customers.

 

Are you in Negative Equity? We can help!

There is a considerable amount of misinformation surrounding property debt and negative equity. The aim of this and subsequent articles is to provide an overview of how we have been assisting homeowners and landlords with property debt issues since 2012.

CD Fairfield was formed by Philip Davison (MD), and Tom Caldwell as a reaction to the fallout from the unprecedented property crash in Northern Ireland in 2008. At the time it was estimated that approximately 60,000 properties had mortgages greater than their value. The Council of Mortgage Lenders estimated the negative equity total to be circa £2.5billion.

Of course, this isn’t an issue for everyone in negative equity, but for those who need to sell for financial reasons or otherwise, many found themselves in a “bad debt” situation for the first time in their lives, and through no fault of their own.

The “party line” from Lenders and Government Agencies was to speak to your lender. I can tell you from significant experience that in many cases that is the last thing a borrower should ever do!

It was clear that a bespoke mediation service was required to take borrowers by the hand to not only guide them through this minefield but provide full representation, an end-to-end solution.

As well an being authorised and regulated by the Financial Conduct Authority we have an in-house Insolvency Practitioner, who is a member of the Chartered Accountants of Ireland and R3 (The Association of Business Recovery Professionals). We also have Senior Management who holds membership of the Insolvency Practitioners’ Association.

With these associations and levels of regulation, we have the full suite of debt solutions under one roof which includes:

  • Mortgage re-negotiations (with the existing lender)
  • Mortgage Mis-selling Claims
  • Informal/Negotiated Settlements
  • IVA (Individual Voluntary Arrangement)
  • Bankruptcy

We also recognised that there were a number of distinct differences based on whether we were helping homeowners or Landlords in Northern Ireland or in mainland UK. This being the case variations in brand were created as follows:

Negative Equity UK

Negative Equity NI

Landlord Debt Advisory

Get Help With Debt

What sort of results does Negative Equity UK achieve? This is a snapshot of some settled cases: Settled Cases

Our independent Client Review show an approval rating of 4.8/5.00

Securing successful outcomes for clients is front and centre in all that we do. How do we do this?

  • Developing and maintaining excellent working relationships with lenders
  • Recruiting highly competent staff from the legal, accountancy, insolvency, banking and financial services sectors
  • Continual investment in systems and people
  • We listen to our clients and implement constant improvement based on feedback

If you are looking to sell house in negative equity or for negative equity help call us today on 0161 660 4403 and see how we can help.

 

 

 

UK house price growth to remain flat in 2018.

House price growth across is to remain essentially flat in 2018, according to the latest Nationwide House Price Index, which predicts growth of only 1%.

According to the report, modest annual growth in the wider economy of 1-1.5%, combined with stagnating household finances will act as a drag on house prices, holding down growth and keeping activity in the housing market subdued over the next 12 months.

The report also notes that house price growth already slowed over the last year, with prices up by only 2.6% annually in 2017, compared to 4.5% in 2016.

Despite this modest growth in 2017, property prices ended the year down slightly month on month, recording a fall of 0.6%, according to the Halifax.Robert Gardner, chief economist at Nationwide, said; “Low mortgage rates and healthy employment growth continued to support demand in 2017, while supply constraints provided support for house prices. However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed.

“The impact of previous policy changes, including additional stamp duty on second homes, changes to tax deductibility of landlord expenses and lending criteria, meant that demand from buy to let investors remained subdued in 2017.”

In 2017, London house prices were hit hardest by the slowing market, falling by 0.5% over the year.

We can help.

These figures will be worrying for homeowners already struggling with negative equity. With prices stagnant across the UK and some areas even seeing prices fall, mortgage borrowers with negative equity will have no hope of seeing their property gain enough value to overtake the shortfall.

So, if you’re struggling to sell a home you can’t afford, or you’re trapped in arrears or negative equity on your property, then we can help.

At Negative Equity UK, our team of property debt specialists offers a range of possible solutions based on your individual situation. Whatever your circumstances, the process starts with a case review. We will obtain all of the original documentation on your mortgage from your lender so we can assess your needs and work out the best way for us to help you.

We don’t adopt a one size fits all approach to helping our clients. Instead, we offer bespoke solutions based on your specific needs and circumstances.Many people need to sell their house in order to deal with their debt. In this case, we can arrange a shortfall sale and negotiate with your lender in order to write off as much of the remaining debt as possible, leaving you with a much smaller amount left to pay.

If you’re in arrears on your mortgage, or you’re trapped in a property in negative equity and you need to move on take a look at our reviews and contact us on 0161 631 2727 or fill out a contact form on our website and we will arrange a call back and start the process of dealing with your property debt.

What is Negative Equity and why is it a problem?

Around the UK, many homeowners have found themselves trapped in negative equity since the property crash and recession ten years ago, but many people don’t know what negative equity is or how it can affect them and their finances.

Put very simply, ‘negative equity’ means that the value of something against which a loan was secured is now less than the outstanding balance. In the United Kingdom and Ireland, it is a term applied almost exclusively to property debt.

In the past, bricks and mortar were popularly seen as a safe investment, guaranteed to gain in value.Similarly, it was accepted that other things depreciated in value, often quite significantly. The market value of a car might drop by 20-30% as soon as it is driven out of the showroom. People understand this and factor this loss of value into their calculations whenever they decided to make an expensive purchase.

But property? That was different. Or, at least, so most people thought.

The recession which hit the UK in 2008 saw the value of many properties plummet. This left those who had taken out loans based on the pre-recession worth of their homes, with debts greater than the post-crash value of their property.

If, in 2006 to ‘07 when the British and Irish property booms were at their peaks, a buyer took a mortgage of £210,000 for a house, today valued at £140,000, they have a problem as selling their home will still leave them with a significant shortfall, which they will still have to pay back.

This is the main problem with negative equity, in addition to this significant loss, the amount raised from a sale at this stage would be insufficient to clear the outstanding debt to the bank of building society.

In the current climate those who have suffered are the borrowers who, in the days of ‘easy money’, took out loans of 90%-100% of the property’s value. From the outset, they were most at risk in the event of any fall in the value of property.

We can Help.

There are a number of possible solutions we can offer to resolve your property debt problems, depending on your circumstances, but for many of our clients a sale and settlement is the only solution to their problem.

We have successfully negotiated hundreds of cases every year where we have arranged the sale of our clients’ homes and reached an affordable debt settlement with the lender.

For other clients remortgaging might be their best option and, in some cases, we might pursue an individual voluntary arrangement, or IVA. This is a legal agreement between you and your lender and is suitable for people who have debts with multiple lenders.

Whatever your circumstances, the first step to dealing with your property debt is to contact Negative Equity UK for an initial free, no obligation consultation with one of our advisors.

Take a look at our reviews and call us on 0161 631 2727 or go to our website and arrange for us to call you at a time that suits you.

We offer solutions for unaffordable property debt.

At Negative Equity UK, when we meet our clients for the first time, they often tell us that they believe their situation is hopeless and they do not think there’s any way out of their debt situation. Many are worried that their debts will inevitable force them to go bankrupt.

There are, however, a range of solutions that can be pursued in order to deal with a property in negative equity. Once we have completed an initial consultation with our clients, we can begin to plan the best course of action for dealing with you problem debt.

Informal settlement.

For the majority of our clients, the best option available is usually a negotiated settlement with their lender. This involves the borrower selling the property and our team negotiating with the lender to write off as much of the shortfall from the sale as possible. This leaves our client with an agreed, affordable amount to repay either in instalments or as a single lump sum payment depending on what makes the most financial sense for them.

We often find that our clients are sceptical that a bank would agree to write down debt, but there are good reasons for them to do this. Repossessing a property and then paying someone to sell it for them is a long and expensive process for the bank and they rarely get the full market value for the house, so agreeing a settlement is often the best option for both parties.

An Individual Voluntary Arrangement.

An individual voluntary arrangement (IVA) is a legal agreement between you and your creditors. IVAs are a possible solution we would examine where a borrower owes money to multiple creditors.

Most types of debt can be included in an IVA, including mortgage debt, credit card debt, unpaid council tax or money owed to HMRC. An IVA might also be worth discussing if you own multiple properties with mortgages from different lenders, or you have unsecured debt from several creditors.

Once a settlement is agreed with your lenders it can be paid as a five year payment plan, known as a contribution IVA, or, if you can afford it, as a single lump sum.

Remortgage/restructure.

For most of our clients, it won’t be a good idea to try to resolve their debt problems by taking on more debt, in a few cases, however, it can be possible to deal with property debt by remortgaging.

While not suitable for everyone, restructuring your mortgage is an option that we might consider with clients who are struggling financially due to unexpected changes in their circumstances, such as a change in your work situation, if you have been made redundant, retired or had your hours reduced, or if your family is growing.We have successfully negotiated with many of our clients’ lenders to extend their mortgage term, allowing them to stay in the home they had worked so hard to secure.

What do our clients say?

One of our recent clients, Kerry, said this after we completed her case; “The service provided by Negative Equity was excellent. Despite all of my concerns and fears about the process they really went out of their way to provide excellent guidance and advice. They took their time explaining in detail the process, no question was left unanswered. My negative equity of £97,000 was reduced to £14,000 final payment. I can’t thank them enough.”

Contact Us Now.

We have successfully negotiated hundreds of cases every year where we have arranged the sale of our clients’ homes and reached an affordable debt settlement with the lender. Whatever the situation we will offer you a bespoke solution based on your own personal circumstances. The first step to dealing with your property debt is to contact Negative Equity UK for an initial free, no obligation consultation with one of our advisors.

Take a look at the rest of our reviews and call us on 0161 631 2727 or go to our website and arrange for us to call you at a time that suits you.