Late mortgage Payments

If you are worried about being late with mortgage payments, or you have repossession worries then you will not be alone. Many people are finding themselves in financial difficulties. If you have any questions please call or email and we will try to help you. You may also find that other people in the same situation can provide support and guidance.
House prices will slump by 20% over the next two years, experts have warned.
The property market is heading for a ‘double-dip’ as rising unemployment and spending cuts strangle demand, according to the analysis. This will mean many more people slide into negative equity.
Interest rates will be increased this year to keep rising inflation in check and higher mortgage costs seem certain to add momentum to plunging property prices.
Not good news if you need to sell your house fast.
Paul Diggle, property specialist at research consultants Capital Economics, said: ‘Prices are trending slowly downwards at the moment, but our view is that this is really the start of the second leg of the correction, and we expect prices to fall significantly further.’
He believes the average home remains up to 20% overvalued – and with the mortgage market still tight and unemployment rising, 2011 could bring prices falling back to earth. Andrew Brigden, of financial research group Fathom, agrees that homeowners can expect a rough ride.
Mr Brigden estimates house prices are 20%, or possibly 30%, too high in relation to average wages.
‘I think the correction will come at some point, even if interest rates stay where they are, but if rates go up, that will hasten it,’ he said.
Higher deposits and tougher credit conditions imposed on potential buyers mean that any boom in demand is unlikely in the immediate post-credit crunch era.
But low property demand is also pointing to falling house prices.
Miles Shipside, director of Rightmove, said: ‘With lenders stating that they expect mortgage lending to remain static at around 2010 levels throughout 2011, and new seller numbers practically unchanged year-on-year, what might have been seen as a passing phase of low transaction levels in the housing market now looks set to be the norm for the foreseeable future.’
He said only around 530,000 mortgages were taken out during 2010, while Rightmove recorded 1.3m properties coming on to the market, highlighting the imbalance between supply and demand which has been putting downward pressure on prices.

Francis