Some sub-prime rates in double figures say National Homebuyers

Homeowners on sub-prime mortgages could find themselves getting into financial difficulties in the months ahead as some rates reach double figures.

[UKPRwire, Mon Oct 15 2007] According to John Charcol, the global credit squeeze is still affecting
many lenders and borrowers and the problems look set to continue.

If you are trying to sell your home in order to free up some cash, the
news that rates remain high may come as bad news to you.

It means that some homeowners could find themselves struggling to keep
up with mortgage payments.

"For borrowers with a sub-prime or adverse mortgage, it is vital this
year they make all of their mortgage payments in full and on time, and
re-prioritise to reduce the loan-to-value of their mortgage if possible
by paying extra whenever possible," said Katie Tucker from John Charcol.

"High loan-to-value, heavy adverse remortgage options from now on will
be slim and, in some cases, non-existent," she added.

Julian King of National Homebuyers says, "We receive thousands of enquiries every week from homeowners who are already stretched to meet their mortgage payments.

"Disposable income is at a low and people are finding the squeeze to much to handle. People facing financial diffculty or repossession should act before it's too late".

Mr King is a director of National Homebuyers, the UK's leading quick house sale company, guaranteeing to make a fast cash offer for any property in the UK, regardless of its condition or location. This service is designed for vendors who need a quick sale. They also offer a Sell and Rent Back solution so that no moving house is necessary.

The global credit crunch, which was caused by the collapse of the US
sub-prime market, led to many mainstream mortgage lenders increasing
rates on some of their products.

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