HIP required for all properties

The Home Information Packs (HIP), at times called a ‘Seller’s Pack’, have been a source of controversy since their introduction. In accordance with the Housing Act 2004, Home Information Packs are required before a home in England and Wales can be put on the market for sale. The government has steadfastly supported the Housing Act 2004 citing that requiring HIPs for homes on the open market would vastly reduce the amount of aborted sales.

Originally, all homes were to be subject to the Home Information Pack requirement. However, the introduction of HIPs was not a smooth transition, so in order to ease the transition, it was decided that Home information Packs would be introduced in phases. In August of 2007, it became mandatory for all homes of four or more bedrooms on the open market to include a Home Information Pack. In September of 2007, the HIP requirement was extended to three bedroom homes. As of 14th December 2007, all homes listed on the market are required to include a Home Information Pack.
(more…)

HIPs hit 3 bedroom houses

As from Monday 10th September 2007 Home Information Packs or the HIP will apply to all three bedroom houses for sale.

The controversial packs were first introduced for four bedroom houses at the beginning of August. HIPs have been opposed by many surveyors, estate agents and homeowners alike who claim that they complicate the sale process. They were designed to speed up the sale process, but there has not yet been any evidence that this is the case.

Home owners wishing to use the services of Rent Back Direct will not require any Home Information Pack.

Rates stay put for September

The Bank of England has today (06/09/07) decided to keep interest rates at 5.75%. Rates have not risen since July, but that was the fifth rise in 12 months. Earlier this year, many economists had predicted that interest rates would rise to 6% towards the end of 2007, but the current problems in financial markets are making that less likely.

This is good news for homeowners and borrowers alike who may be already stretched at 5.75%

Homeowners set for hard time as Interest rates rise again

Homeowners with variable rate mortgages could be set for hard times ahead as interest rates set by the Bank of England have risen again to 5.75%. Homeowners who have fixed rates ending soon could also find it harder to get a good remortgage deal.

Many homeowners could be facing mortgage arrears and financial hardship as monthly outgoings will be increased by the recent rate rise. Repossession will be a problem that many will face as mortgage costs are on the increase.

Estate agents will be asked by many homeowners to sell their property quickly so that they can then pay off debts from the proceeds of the sale. For families that do not want to move home and uproot their lives, this is not the ideal solution.

Rent Back Direct can offer an alternative by purchasing your property quickly and allowing you to stay as a tenant for as long as you like. We offer fixed rent periods and the option for you to buy back the property at pre agreed prices so that you do not have to worry about increases in the rent and can still regain ownership of your home.

To discuss our sell and rent back solutions contact us now. We will be happy to talk you through the various options that we can offer.

interest rate rise hits homeowners

The Bank of England base rates could be set to raise again in July.

Two years ago when the rates were at about 4.5% many homeowners remortgaged and opted for fixed rates, most of these will have been two year deals. These deals will be expiring soon and homeowners will definitely feel the pinch as interests rates are now at 5.5% and could be set to rise in July.

The four interest rate rises in the last two years will have hit homeowners on variable rate mortgages already. Homeowners with fixed rate deals ending soon with feel the force of the rate rises now. Whether they stay with their current mortgage lender or they switch and remortgage their monthly payments will now be higher.

How much higher would monthly payments be? A home owner with an interest only mortgage and a loan size of £160′000 would be paying about £600 per month on 4.5%. If they now had to pay at 5.75% their interest only payments would be approximately £766 per month. That is an increase of 28% on their monthly payments.

If you are having trouble meeting your monthly mortgage payments a sell and rent back solution could be for you. Please contact us to see how we can help.