News out today that even the banks are getting worried about their own rising interest rates. The Times online has an article about how the leading mortgage lenders are getting worried about the potential of a house prices crash. Because the banks have been busy making so much money from mortgages and especially re-mortgaging ans second charges which depend on the consistant rise of house prices to guarantee the banks' profits, it's not just homeowners who could face meltdown in a house price crash crisis.
Even if the banks repossess your home, they still need to sell it either on the open market or via an auction in order to recover the debt from you mortgage. But if house prices crash then the banks will be less likely to recover all of your mortgage debts on your property. The result? Interest rates and mortgage arrangement fees are likely to increase further to cover the bank's shortfall in profits.
Why should we all care about the banks losing money? After all they make enough! Sure, but it concerns all of us who have a mortgage on our homes because rising interest rates affect us all.
With this in mind it could be the right time now to consider selling your home and renting it back. For the first time in living memory it is cheaper to rent most homes than to pay the mortgage. If you have a good amount of equity in your home you will also get a large lumpsum of tax free cash to spend. Isn't that better than having it stuck in your house only to lose it anyway when the market falls?
To find out more, contact Cash For My House and enquire about our sell and rent back scheme.
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