Inquiries from middle-class homeowners for help surge 220%

Posted under News by Alan

Latest report by a company, which buys properties from cash-strapped sellers, the middle-class homeowner is the biggest sufferer of the economic slowdown and collapse of the housing market.

The property recovery specialist firm, the Property Portfolio Rescue (PPR), informs that 3,000 homeowners have sought its help in last 3 months while inquiries from middle-class homeowners soared by 220% since last year.

PPR states that large number of buy-to-let landlords are being forced to sell their holdings as they are unable to refinance mortgage deals. However most of them are seeking company’s help to avoid repossession of properties.

The firm is apprehending repossession of 70,000 homes, amounting to 60% increase over last year. According to company director, Nick Hopkinson, this surge is an indication that recession is biting the whole UK economy. He feels that more small buy-to-let landlords would face financial difficulties since lower mortgage costs will not be available for longer period.

Hopkinson says that landlords will face mortgage cost time bomb when inflation pushes up interest rates again. He suggests them to save against this eventuality or reduce debt liability.

Last week, first time since last 5 months of continuous rate cuts, the Bank of England stopped further cuts and retained base rate at 0.5%.

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