Forced To Sell Their Homes At Any Price

 Homeowners stuck in flats they cannot sell due to a red-tape nightmare are now so desperate they are flogging their properties at enormous discounts of up to 40 per cent on their asking price. Lenders have been refusing to offer mortgages on tens of thousands of homes after new safety rules were introduced in the wake of the Grenfell Tower fire. But homeowners say they face bankruptcy if they cannot sell their properties, as many expect crippling bills for repair work and rising mortgage payments. The fiasco means growing numbers are now turning to firms that pay cash for unwanted properties at cut prices. Read more on the Thisismoney website.

https://www.thisismoney.co.uk/money/mortgageshome/article-8860203/Banks-refuse-mortgage-flats-cladding-fears.html

7,000 Estate Agents At Risk Of Going To The Wall

More than 150 estate agency firms went insolvent last year and as many as 7,000 are at risk as high street operators face the triple whammy of online competition, a sagging property market and cuts to letting fees. A study by accountants Moore Stephens found that 153 estate agency firms went insolvent in the year to May 2018, a small increase on the 148 the year before. But it found that more than 7,000 estate agents “currently show signs of financial distress”. Read more on the Guardian website.

https://www.theguardian.com/business/2018/jul/01/7000-estate-agents-at-risk-of-going-to-the-wall-says-study

Government Review Into Letting Agent Fraud

The Government is to review whether renters’ and landlords’ money is adequately protected from letting agent fraud or bankruptcy. They are launching a consultation on whether the Client Money Protection scheme (CMP) should become mandatory. Currently, letting agents hold money on behalf of renters and landlords for a range of reasons, including deposits, rental payments, and money for repairs. But this money is not always protected by a CMP, meaning the client could lose large sums if the letting agent goes bankrupt or commits fraud. Industry estimates letting agents currently hold approximately £2.7 billion in client funds. Read more on 24dash.

Sub-Prime Mortgages Make Surprise Comeback In The UK

Sub-prime mortgages, widely blamed for causing the 2007-08 financial crisis, are making a surprise comeback in the UK, with several new lenders launching home loans for people with poor credit histories. Lenders are targeting people who have faced serious financial problems including repossession and bankruptcy – as well as those with more minor blots on their records – for the mortgages, which come with interest rates as high as 8%. Bluestone Mortgages, a lender part-owned by Australia’s biggest investment bank, has just launched in the UK, following hard on the heels of another Australian-owned business, Pepper Homeloans, which similarly caters for those who have experienced a “credit event” such as missing payments on a previous mortgage. Read more on the Guardian website.