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Nationwide exercising caution following rate rise - National Homebuyers.

Written by Charlotte Burrows

Thursday, 24 May 2007

Recent rises in interest rates means Nationwide is taking a more cautious approach to mortgage lending, it has been revealed. The building society predicts interest rate hikes effectuated by the Bank of England's monetary policy committee (MPC) recently will have an adverse affect on the abilities of many Britons to finance a move.

As a result, three in five unsecured borrower applications are now turned down by Nationwide as it seeks to protect itself from making loans which homeowners subsequently discover they can not afford to repay.

"We are being much more careful about the business we're bringing on to the balance sheet," confirmed Graham Beale, Nationwide's chief executive.

Nationwide forecasted that as a result of the aforementioned interest rate increases, the housing market will cool significantly.

Consequently, it announced it envisaged house price growth for the rest of the year to be relatively modest in comparison to recent times. However, property purchase expert Julian King is more direct in his prediction.

"The market is heading for a crash. If you accept that rate rises, lack of first time buyers, probable introduction of Hips later this year, the volume of repossessions, slowdown in the buy-to-let market and the continued increase in number of ludicrous mortgage arrangements all compound, we're heading for a time where 'negative equity' starts to become a buzz phrase again."

King is director of National Homebuyers, the UK's largest fast property purchasing firm. National Homebuyers have been heralding the likelihood of a market crash since the end of last year. People concerned about the future value of their property gather more information at www.nationalhomebuyers.co.uk/index.asp or call 0870 979 8118.

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The National Homebuyers guy is a VI, though, so he's hardly an unimpeachable source.

He makes his money from panicking people into selling their homes before the price plummets. He's the same thing as an EA, just on the other slope of the market.

Just as well that I don't need his opinion to substantiate my arguments, then, eh?

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Is that site a news site or the PR company for National Homebuyers (BMV vultures?)

2 other stories from today (in addition to the OP's):

Analysts have responded to Nationwide's expectation that house prices could surge by as much as eight per cent in 2007 by predicting yet another interest rate hike.

Although Nationwide's envisaged figure is significantly lower than the 10.9 per cent annual rate of house price inflation reported by the Halifax house price index recently - suggesting the market is set to cool - Capital Economics' Vicky Redwood, for instance, believes the Bank of England will still decide to take action to ensure house price growth is sufficiently quelled.

Unfortunately, Ms Redwood concedes, this will have an adverse impact on a number of households.

"The higher rates go the more households will find it impossible to repay their debts," she told the Daily Mail.

Numerous reports have divulged that the expected rate rise is likely to prompt a raft of repossessions as consumers struggle to cope with higher mortgage costs.

Those in - or predicting - financial difficulty could consider selling their properties to National Home Buyers and subsequently renting them back. The fast purchase property firm guarantees to make an offer on any property surveyed, allowing the vendor to sell immediately or arrange to release the equity in the property and rent back their home.

Director Chris Newman says: "Sell and rent back is becoming more and more popular with homeowners who need access to the cash tied-up in their bricks and mortar.

"Our solution is easier to understand than an equity release scheme, but the benefits are the same: releasing cash in your property to allow you to pay off debts and live the lifestyle you want. No moving is necessary."

Further information about the National Homebuyers' sell and rent back solution can be found at www.nationalhomebuyers.co.uk/sellandrentback.html or by calling 0870 979 8118.

Impact of rate rises 'starting to kick in' says National Homebuyers.

Written by Charlotte Burrows

Thursday, 24 May 2007

Recent rises in interest rates are having an impact, it has been confirmed.

According to property website Rightmove's Miles Shipside, asking prices are being forced down as homesellers recognise the difficulties homebuyers are facing as they attempt to finance the purchase of new property.

This is especially noteworthy, Mr Shipside suggested, given that the housing market should be booming at this time of year.

"There are signs that the rises are influencing sellers' asking prices," Mr Shipside confirmed in the Daily Express.

"Average prices showed their smallest rise of the year in our latest research. That's surprising given that we are at the peak of the spring marketing season."

Interest rates were increased in August, November, January and May - while many analysts expect a further hike later on in the summer.

Homeowners struggling under the impact of rate rises could consider selling their properties to quick sale property firm National Homebuyers. Director Julian King says: "For Rightmove to confirm our predictions of last year must be a signpost no-one has wanted to see.

"Asking prices are coming down, as homeowners and agents are beginning understand that belief in the media hype that everything is rosy in the garden is foolhardy.

"National Homebuyers arrange a quick sale for any seller, we can even arrange for the vendor to release the equity in their home, while remaining living there as a tenant."

The National Homebuyers "sell and rent back" solution is available to any homeowner, with a property in any condition or location in the UK. Further information about sell and rent back can be found by clicking here: www.nationalhomebuyers.co.uk/sellandrentback.html or by calling 0870 979 8118.

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By the way, what are Nationwide playing at with their savings rates? They've increased the rates on some of their products today but haven't put the ISA rate up and the products which promise to track the BoE base rates haven't been put up!!! :angry: :angry:

http://nationwide.co.uk/savings/rates.htm

Edited by thecrashingisles
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If you've got a pulse, you can have a mortgage :P

Well, when I got my mortgage with them some 18 months ago, I was allowed to borrow a maximum of the traditional 3.5 times salary. (And this was with a 30% deposit). I have a stable job (almost 10 years) with a well known company. Seemed like responsible lending to me. (And at a nice fixed rate for the next 3.5 years too).

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  • 440 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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