Negative Equity Hits Homeowners

Another devastating blow has been served to homeowners in the UK as statistics reveal that more and more family homes are sliding into negative equity. With confirmation that the country is moving towards recession comes a price tag for homeowners whose homes are worth less than the mortgage loans they are struggling to pay off.

This week’s statistics show that over 60,000 homeowners per month are falling into negative equity. Standard and Poor, the ratings agency, have revealed that there has been a rise of 260,000 homes that have fallen into negative equity over the last 4 months and they have suggested that 335,000 homes will be worth less than their mortgages by the end of October.

It has been predicted that 2 million households in the UK will be in negative equity by 2010 as house prices continue to fall and a recovery likely to take at least two years. This information exceeds the figures from the housing crisis in the early 1990’s, which saw the amount of homeowners in negative equity fall to an all time low of 1.8 million. The value of homes will slump by a predicted 35% by 2010 in comparison to a 20% fall during the housing slump of the early 1990’s.

Unfortunately, as many families slide into negative equity, the threat of repossession is likely to increase, particularly as unemployment figures continue to grow. If homeowners are unable to keep up with payments, many banks are likely to take action and begin repossession proceedings. It has been reported that many banks take an inflexible attitude towards those who cannot meet mortgage payments and the number of repossessions has increased as a result.

As there are no industry guidelines as to when repossession should take place – i.e. there is no specific figure for how far into arrears a homeowner has to be before repossession proceedings begin, homeowners are left not knowing when repossession is likely to happen. Due to this, the government has voiced intentions to bring forward laws which will force lenders to make it easier for homeowners in arrears by offering alternative payment options.

If you are falling behind on mortgage payments and are facing repossession, Swift Capital may be able to help you. As the UK’s premier home buying service, we are able to make it possible for you to sell your house quickly and avoid repossession.

We know that the threat of repossession is distressing and you may be concerned that there is no viable way out, particularly considering the current conditions in the housing market. Swift Capital can offer you a solution; we will buy any property in any condition and can usually offer up to 80% of the asking price.

For expert financial advice, contact Swift Capital today and see if we buy your home fast.