National Homebuyers: 'Northern Rock crisis still having an effect'

The Northern Rock crisis is still having a negative impact on the UK economy, spelling bad news if you are looking for someone to buy your property.

[UKPRwire, Tue Nov 13 2007] Liberal Democrat leadership hopeful Chris Huhne has warned of an economic slowdown as potential buyers lose confidence in the housing market.

Northern Rock ran into trouble following the collapse of the US sub-prime mortgage market and Mr Huhne said that the effects will be felt for some time.

"Northern Rock was responsible for a fifth of all the lending in the housing market in the first half of this year. It is now running at a fraction of that because it has really had to draw its horns in," he told BBC Two's Newsnight programme.

"So that is obviously going to have an effect on the housing market, that will have an effect on confidence, it will have an effect on people's willingness to spend and it will have a knock on effect on the feel good factor," added Mr Huhne.

Quick property sale expert Julian King adds, "In light of the crisis, many mortgage lenders have increased their rates independently of the base rate, meaning more borrowers are in danger of getting into financial difficulty.

"Our analysts concur directly with PriceWaterhouseCooper in that we predict 30,000 repossessions in 2007 and up to 45,000 in 2008.

"Homeowners with a slightest thought that they may be heading for dangerous waters shouls seek assistance quickly. Often a quick house sale will be the solution.

"However leaving this too late and to the delays of placing your property on the open market could be ultimately disasterous as the homeowner runs out of time".

National Homebuyers are the UK's largest quick property sale firm, guaranteeing to make an offer to purchase any property surveyed for vendors who need a quick property sale.

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