Regal Property Services

I heard on the radio the other day that there are approximately 1.5 million households who currently have a fixed rate mortgage deal which is due to expire in the next 6 months! This is a huge proportion of the British housing stock who are going to be looking to re-mortgage or change their lender, however with the current ‘credit crunch’ situation, the reported falling house prices as well as the 85 billion pounds worth of mortgages held by Northern Rock, I have to question how everyone will fare in 2008. The expectation is that the cost of borrowing will skyrocket, especially for those who have ‘black marks’ against their credit history.

I have often wondered about the logic that banks use where they lend vast sums of money when interest rates are low and usually lending a large proportion of this to people who can ill afford it. Then, when interest rates go up, this leads to additional problems where people fall behind on their payments, and then the banks increase the cost of borrowing further! The downward spiral is painful for a lot of people who see borrowing costs increasing when they can’t afford the initial payments!

One of the reasons I set up Regal Property Services was to try and combat the system of the big banks being heavy handed with people who are facing financial difficulties. One of the greatest injustices I see is that when banks lend money, any losses they make are underwritten by a blanket insurance policy. However, if you are unfortunate enough to have your property repossessed, the banks will usually sell it at auction. But here’s the interesting bit - if the property fails to sell for more than the outstanding mortgage held against it, the banks will then pursue the former homeowner for the difference PLUS the costs incurred! How unfair is that?!

However, by using RPS to step in and buy the property to prevent a reposession, you will achieve a healthy price for it, and be able to stay in it as a tenant should you wish to. I like the idea of being able to help people who face such difficulties and ensure they have the opportunity to turn their financial situation around and live a good life.

If you would like to know more about our services and how we can assist you please call free on 08000 688 334. Your call will be dealt with in complete confidence and we look forward to being of service to you.

It was interesting to read that the US Federal Reserve cut interest rates by 0.75% yesterday in a bid to try and stave off the looming recession facing the American economy. It is unfortunate that they are now suffering through lack of forethought from dropping interest rates down to a record 1% back in 2001. The most unfortunate part about it, is the impact this is now having on the economy in the UK which could now suffer as a direct result of the US being too ‘free and easy’ with their lending criteria.

Here in the UK, it is likely that interest rates will fall next month and many are predicting that the downwards trend of interest rates will continue for at least the next 12 months. However, what is not being covered in the press is that anyone without a ‘whiter than white’ credit history is now being faced with increased costs as far as borrowing money is concerned. Many mortgage products that were offered at very competitive and discounted rates some 3-4 years ago are now beginning to expire, and those who want to remortgage are being faced with a very difficult time.

It is saddening to think that many people are being forced out of their homes through repossession through a weak link in the banking system which allowed people to borrow lots of money when the banks thought it was ok to do so, and now, realising they have made some mistakes, are making homeowners up and down the country pay for it. Somehow, it doesn’t seem fair!

The number of repossessions are rising, however people are looking at other options rather than just losing their home to the bank or building society. A company such as mine aims to help people who are in this very stressful situation by buying the property from the homeowner (thereby relieving them of the mortgage and monthly payments), and then renting it back to them if they want to, or allowing them to move out should they so desire.

If you, or anyone you know is facing this situation, we can help! We move very quickly to prevent anyone being repossessed and offer tailor made solutions to each individuals circumstances. If you would like to find out more, please call 08000 688 334 or visit www.regal-property-services.com We can also help to save you money on your monthly utility bills as an added benefit of contacting us. Your enquiry will be dealt with both professionally and courteously and in the strictest confidence.