Posts Tagged ‘newbuy’

The ‘NewBuy Guarantee’ Makes It Tougher To Resell Property

Monday, March 19th, 2012

The new mortgage scheme is open for business – competitive rates and lower deposit make this mortgage plan appropriate for a lot of prospective buyers. But this scheme is only applicable to those who are buying new-build properties!

“Ministers are today launching the scheme under which up to 100,000 people will get Government support to buy homes worth up to £500,000.” – says Telegraph.

Just imagine what will happen to the homeowners who are looking for fast property sale! It is already difficult to sell property; now if 100,000 buyers move to new-build properties there has to be a void in the resale market.

Problems most property owners face these days:

1] Less number of buyers

2] Uncertainty

Strict mortgage criteria and scarcity of suitable mortgage plans were the reasons people were not buying. Now, the NewBuy Guarantee would encourage people to buy new-build houses; then how the property owners would sell their houses? It will become more challenging for them to find a buyer.

Those who are facing repossession and looking for property sale as an alternative would be in a mess. There will be very limited number of buyers available for them. Either they have to let their lenders repossess the house or they have to sell it at auction. This would definitely have an impact on the house prices at national level.

Selling property to professional property buyers is a better option. Property buyers offer close to market value for the properties and take care of all the hassles themselves. If you are expecting a financial hardship, look no further and talk to the property buyers. Things might turn more challenging down the line.