One of the increasing concerns for the UK housing market is whether it will end up following the same gloomy fate as the US sub-prime crisis. In America, thousands of homeowners have been unable to stop house repossession as a result of poor credit. The sub prime lenders went to town with 100% mortgages regardless of their customer’s credit history. The result? Thousands of people who over-extended their finances ended up being unable to stop house repossession as the housing market collapsed in America.

So will the credit crunch impact on the number of home repossessions in the UK? Some analysts are estimating that there will be a 50% increase in homeowners who will be unable to stop house repossession. As the market is more vulnerable, lenders are tightening their belts, refusing 100% mortgages - especially to those with a poor credit history. Bigger deposits will be needed which will exclude those who don’t have the capital, reducing the risk of them falling into mortgage arrears. It’s hoped that these measures will help return stability to the market, but not without a cost – many homeowners who over extended their finances to take out a mortgage will be facing the very real risk of repossession as a result, and some may not be able to stop house repossession.

If borrowers can’t afford their mortgage repayments in the current climate they can’t borrow more to meet the increased costs, but they can still stop house repossession by opting for a fast house sale through a specialist property buyer. A quick house sale may be the only way out to stop house repossession because people with poor credit history may find that remortgaging to release equity is simply not an option available to them because of the tightening of lender’s criteria. Add to that the fact that the standard variable rate among sub-prime lenders now stands above 10% in many cases – above the affordability level of many borrowers – a fast house sale could be the only way out.

Many homeowners with a poor credit history simply don’t have a comfort cushion to buffer themselves against the rising interest rates and high repayments, making them vulnerable to repossession – if you fear you could be a victim in 2008, you could opt for a fast house sale and stop house repossession now, before it’s too late.

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 have you a cash offer in principal for your house within 24hrs 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