Even though there is hope on the horizon that the poor credit mortgage market has seen the worst it will see, it does appear that many different problems are still ongoing. Although a turnaround is expected soon for poor credit mortgages, at this time, defaults are still a major problem both for homeowners and the banks that hold the loans.
Richard Meeson, a partner at Dreweatt Neate stated, ‘What the housing market dislikes more than anything is uncertainty, so a hold on rates generally goes down well. While any such move is to be welcomed, it has created uncertainty in the property market, to such an extent that even if the Bank of England had cut rates, the property market would still have been on the back foot. The government urgently needs to make a decision on stamp duty because, until it does, transactions levels and property prices could fall further as people sit tight – and who can blame them?’
He added, “On a more positive note, we are seeing a big increase in activity among the professional property investors we deal with. Many see now and the months ahead as a great opportunity to buy.’
Related reading: Poor Credit Mortgage
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