In light of this development,
"A market analysis company commented that the upward trend in interest rates would have a great impact on the affordability rates of houses. If people compute the total cost of mortgage repayments based on the current interest rate, families are currently allocating 21.7 per cent or a fifth of their household income to monthly mortgage payments. New home purchasers, on the hand, are paying a bit more per month at 21.9 per cent,"
"Now interest rates are starting to normalise, it's expected that banks will tighten lending in the process. As a result, more buyers may find themselves locked out of the property market," he added.
"Seller financing is very advantageous both for home buyers and property investors because it eliminates the need for taking out new loans or saving up for a large a deposit. When you eliminate these financial obstacles, the terms become more affordable and accessible for buyers, who have the passion but lack the funding to fulfill their dreams. For example, rather than take out a new mortgage, a buyer can negotiate to assume the existing loan and pay the remaining equity in increments. This allows the buyer to move in quickly and minimise upfront costs. On the other hand, this allows the seller to move away from unwanted debt and create a passive income stream at the same time," he explained.
Visit http://www.rickotton.co.uk/ today to get more information about creative seller finance strategies and how these strategies can be applied in changing market conditions.
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Read the full story at http://www.prweb.com/releases/rick-otton-analysis/uk-property-market/prweb12135143.htm
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