The Financial Services Authority has warned the housing market is in trouble, could a rent back scheme offer a way out?
‘The Grim Repo' is a headline that's hit a few of the papers as repossessions soar in America. And in the UK, many experts have begun to talk openly about the risk of repossession here. Homeowners already struggling with debt or mortgage arrears are turning to rent back schemes to avoid the emotional and financial trauma of house repossession. And some opt for rent back schemes as a short term fix, in the hope that as the economy gets better or their earning potential increases, they'll be able to buy their homes back at a later date.
Rent back as millions at risk
But is house repossession and even negative equity a real risk or just fearful speculation? There is certainly disquiet in the housing market as the popularity in fast house sale and rent back schemes testify. And rent back schemes are a viable way of coping in a climate where over a million homeowners have been warned by the FSA they could be at risk. Increased inflation rises and a slowing economy means over a million of us are set to struggle. Rent back schemes could be a top priority for those who fall into the at risk categories. This includes those who have a term of more than 25 years on their mortgages, whose mortgages are valued at over 90% of the home's value, or who have had to borrow 3.5 times or more than their income.
Repossession rise on the cards
The FSA warning is a double whammy as homeowners are told the value of their homes is decreasing, some estimate 2008 will see ‘£50 a day' fall off the value of homes. Rent back schemes are an affordable alternative to repossession if you are desperate to stay in your family home. According to the Council of Mortgage Lenders figures, more of us may be searching for a rent back scheme as repossessions are set to rise – around 30,000 homes were repossessed last year compared to just 8,000 in 2004.
Rent back and stay afloat
Struggling homeowners are facing a gloomy future, and if you are at the end of a cheap fixed rate mortgage, have had your credit card cancelled as lenders become reluctant to risk bad debt, or simply can't tally your income with your outgoings, a rent back scheme may be the lifeline you need.
Rent Back with rentbackltd.co.uk
If you're caught in a financial house-trap, rentbackltd.co.uk can throw you a life-line. Rentbackltd.co.uk offers a sell and rent back scheme for those who like living where they are and want to maintain stability but are facing mortgage arrears, repossession, bankruptcy and debt or concerned financial meltdown is looming. The rent and sale scheme is an alternative to selling up and moving, allowing you to stay put and find financial solutions. Rentbackltd.co.uk will buy your home and allow you to continue living in it as a tenant. Find out more, call Rent Back Ltd. today on: 08000 255 027