Millions face financial difficulty according to National Homebuyers

More than a million homeowners are facing financial difficulty when their mortgage rates increase by up to 60 per cent.

[UKPRwire, Mon Nov 26 2007] The Council of Mortgage Lenders told information business company Cantos that repossessions are set to rise as many people reach the end of their fixed-rate deals.

In fact, the CML is advising some homeowners to make a quick property sale in order to avoid repossession.

"[Those with bad credit records are] clearly most at risk of repossession. They can avoid it by seeking to sell and becoming a tenant," said Michael Coogan, director general of the organisation.

"We are facing very difficult times. We have a number of uncertainties in the market.

"We've effectively had two seismic events that we've still not recovered from - the earthquake of the capital markets closing because of the problems in the US sub-prime market and the earthquake of the Northern Rock bank run," he added.

Quick property sale expert Chris Newman adds "The Sell and Rent Back proposition is a lifeline for many thousands of UK homeowners.

"Like the Council of Mortgage Lenders, our analysts have predicted 30,000 repossessions this year and a further 15,000 next year. Those who need to sell property quick because of financial reasons will find the market in 2008 highly unadvantageous.

"As such, our Sell and Rent Back product is hugely popular. We can purchase a property for cash within days and arrange a suitable tenancy for the vendor, thus solving financial and accommodation issues in one go".

Mr Newman is a director of National Homebuyers, the UK's leading fast property purchase firm. The Sussex-based busines guarantees to make an offer to purchase any property in the UK for vendors who need a quick cash house sale.

The news comes as sub-prime lender Paragon Mortgages saw its shares halve as a result of rising costs which came about after the global credit crunch.

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