Stop House Repossession – The Home Loan Risk

When it comes to buying a house, it isn’t just the mortgage repayments that can cost an arm and a leg, which is why it’s increasingly hard to stop house repossession.Surveys, news reports and the financial pages are inundated with stories on housing market doom as more homeowners struggle to stop house repossession. The cost of taking out a mortgage is rising at an unprecedented rate. One industry analyst said that the average arrangement charge for a mortgage is now £827. It’s little wonder that people who have found their dream home soon realise they’ve bitten off more than they can financially chew, leaving some unable to stop house repossession. According to the Telegraph newspaper, “Last month Abbey launched a two-year fixed-rate mortgage at 5.59 per cent which charged an eye-watering fee of £9,999…It had also planned a deal for loans of more than £750,000 with a £14,999 fee but the deal was pulled after it was discovered that the bank's systems could not cope with a fee of more than four digits.” Stop house repossession – avoid arrangement feesAccording to the survey quoted, the average arrangement fee in 2005 was £441. Many homeowners therefore simply didn’t take such big fees into account when buying a property, leaving some property owners in difficult debt and even unable to stop house repossession. For some, a fast house sale scheme is the only way out to salvaging their finances. As well as mortgage fees, the report also said there was a worrying trend on lenders introducing percentage fees – 9% of all prime mortgages involve a percentage fee. In effect this is penalizing those who are more likely to struggle holding onto their homes and could end up being unable to stop house repossession.Forced to stop house repossession The recent introduction of upfront charges and high percentage-based fees means it isn’t always the most cost-effective option to choose the mortgage with the lower interest rates – causing general confusion for homebuyers and leaving some with a nasty financial sting in the tail. If homebuyers take on more than they can realistically afford, it’s only a matter of time until they end up being unable to stop house repossession or being forced to opt for a fast house sale.  njoy.co.uk is a dedicated website that can help get you the best price for your property from committed cash buyers in your area. We aim to give you a cash offer in principle within 24 hours of you registering your house on njoy.co.uk. Many of our registered investors can offer you a 'sell and rent back' option, where they will buy your house for an agreed price, and allow you to stay in your property as a tenant. This may enable you to pay off all your debts in one easy stroke by releasing the equity tied up in your home. If you wish to discuss the process then we would be delighted to talk to you at your convenience, our customer service team can always be contacted either by telephone 0845 337 0038 or alternatively you can email your query to: info@njoy.co.uk

 

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