Quick sale housing option could be costly
New research by Confused.com found that quick-sale companies can offer customers threatened with repossession or needing to settle inheritance tax bills as little as 75 per cent of their property’s value in return for a promise to complete the transaction at top speed.
Indeed, research shows that the time the average property spends on the market before being sold has risen considerably across the UK. In London in 2007 it took 75 days to sell a house, while now it is 152 days. In Cardiff the number has risen from 87 to 222 and in Leeds from 78 to 228.
“Taking this drastic method of selling your property may offer a speedy way of releasing some much needed cash, but there are some serious implications to be made aware of,” says Mhairi Duffin, Head of Mortgages at Confused.com. “We’d advise you to make your mortgage lender aware if you have any difficulties paying your bills or would just like to sell your property. Those that are finding life difficult and meeting mortgage payments a struggle should initially contact their mortgage lender to work out a plan of action that can help them get back on track and avoid repossession, rather than losing one of their most important worldly assets.”
Confused.com tips for homeowners struggling with monthly payments:
* Don’t bury your head in the sand, talk to someone such as your lender, a mortgage advisor, or the citizens advice bureau
* Is your mortgage flexible? You might be able to:
- extend the term
- take a “Mortgage Payment Holiday”
- reduce your payments for a set period
- change to interest only for a while if you’ve got a repayment mortgage
* Check your outgoings, complete a budget planner and see if you can save money elsewhere
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