Can I Sell & Rent Back with No Equity?

With the current credit problems affecting anyone trying to re-mortgage I’m seeing a huge rise in requests for information about our Sell & Rent Back option.

In the last few weeks more than 10,000 mortgage products have been withdrawn by lenders and for those with mortgage arrears and or repossession on the horizon, getting a remortgage is currently near impossible.

For many the last few years have seen their properties rise in value, and every 2 years or so when their current mortgage product has ended, they have remortgage up to the maximum amount based on the new, higher value of the home.

It looked as if this system of remortgage, rise in value, remortgage again, was going to last forever.

However, interest rates have risen, wages have stayed low, the cost of living has soared and the banks have been playing around with our money in a way that the average person could never do.

These banks are getting away with having wasted billions of pound, are getting bailed out by the Government, whilst at the same time refusing to carry out their business of mortgaging our homes!

The result is that many people are facing mortgage arrears and repossesion.

The option of safe Sell & Rent Back is a good one for many, but only for those with at least 15% equity left in their home.

Yesterday I got an email from a homeowner who valued his property at £200,000. However, his secured mortgage and second charge loan debts were £204,000.

That means he owes more than his home is worth.

But not just £4000 more.

The value of his home was estimated from estate agents’ asking prices - not from actual sold prices.

Just as he was not able to remortgage, new homebuyers are also being refused mortgages so houses are simply not selling at the prices of 2 or 3 months ago.

On top of that he had an early redemption penalty with his lender that would add £10,000 to mortgage if he sold today.

He was also in arrears of £2400.

The lender is taking him to court for repossess the home. Legal costs are estimated to be another £2000.

So this man’s home was worth perhaps £185,000 for a realistic quick sale, but his debts are approx £220,000.

This is the return of the dreaded negative equity and it’s starting to happen to thousands of people.

However, if you think that you may have problems with mortgage arrears or you may not be able to remortgage your home, as long as you have equity in your home you could qualify for our ethical sell and rent back option before it’s too late.

Right now rents are approx 2/3 of mortgage payments for the same time of property and even 1/2 the cost of many sub prime lenders like GMac, GE Money, Kensington, Preferred and others.

Cashing out your remaining equity, paying off all your secured debts, paying lower monthly rent and waiting until the housing market recovers could be a sensible option.

We can even offer you a buy back option of your home at a discount further down the line.

For more information read my 15 page PDF guide to the Sell and Rent Back process.