National Homebuyers: 'Halifax increases rates'

There may be a rise in the number of people seeking a fast property sale as mortgage borrowers received another blow this week.

[ClickPress, Tue Apr 15 2008] Halifax, the UK's largest mortgage lender, has increased rates on many of its deals, with first-time buyers likely to be the worst affected.

Borrowers who have a deposit of less than 25 per cent will see rates increase by an average of 0.14 per cent.

In addition, the highest loan-to-value being offered by the firm has fallen to 95 per cent.

It means fewer buyers will be able to enter the market and prices will inevitably fall, potentially leading to a surge in people seeking a fast property sale.

"Increased rates on high loan-to-values spells bad news for first-time buyers and remortgagers with little deposit. Anyone looking for a high loan to value is going to have a much harder time than they did six months ago," said Moneyfacts.

Fast property sale expert Julian King adds, "The mortgage market is getting increasingly difficult. Those coming off their fixed-rate mortgages will equally find it difficult to find a pleasing deal.

"For some this will mean the impossibility of keeping up on repayments and means only a fast property sale will suffice to solve their financial problems.

"Selling a property on the open market, thanks to the lack of buyers, introduction of Hips and uncertain nature of the open market means thousands will be seeking alternative means to selling their properties".

Mr King is a director of National Homebuyers, the UK's leading quick sale purchase firm that guarantees to make an offer to buy any property in the UK. The company purchases any UK property, regardless of its condition or location for property owners who need a fast property sale.

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