Buy my House Fast! I’ve Ran out of Equity!

Some homeowners are realising they have little option but to ask ‘buy my house fast’ as they face up to negative equity.

Equity release was traditionally a way for homeowners to cope with debts or to release a tidy sum of money to meet the demands of life – such as to pay for a wedding, holiday or university fees. But the problem that many homeowners fell into was the belief that their home would be an endless cash cow. In the nineties homeowners got into the habit of using their homes like cash points. And they had the psychological buffer of thinking their equity would protect them if faced with an unexpected outgoing.

Buy my House Fast! The Equity Crisis
According to news reports, the amount of homeowners using equity release to pay off debts has increased to 35% in 2009 from 11% in 2008. And the upward trend looks set to continue in 2010. The biggest reason for equity release is home improvements but one of the most significant changes in the last year or so has been the need to release equity to pay off non-mortgage debts. And when the equity runs out, homeowners may realise they’ve lost more money than they’ve put in as property prices drop. Negative equity can trigger many people to desperately ask: buy my house fast!

Equity Release ‘Widespread’
It’s tempting for homeowners in financial difficulties to turn to equity release schemes. But the increase in the trend to use equity to pay off debt is a worrying one. But the question of debt and clearing debts is a growing preoccupation across the UK across all ages, sectors and income-levels. More people are desperate to free up disposable income. But the problem is many homeowners have run out of disposable income and equity. For some, they may be left with few options but to ask, ‘sell my house fast’.

Paying Mortgages on Credit Cards
Releasing the wealth in our homes was only a bonus when property values continued to increase. The equity allowed homeowners to make improvements, maintain a standard of living or clear debts. But now, releasing equity is not done lightly as property prices fall and stagnate.

The news that up to one million households borrowed money on credit cards in 2009 reveals how desperate homeowners are when it comes to paying basic living costs, let alone having any disposable cash. According to the homeless charity Shelter, around 6% of homes in the UK have relied on debt to pay their housing costs.

Are you worried about holding onto your home? If you’re asking ‘buy my house fast’ Move Quickly can help. Call today on 01302 722 900.