Mortgage approvals at a new low

The number of mortgage approvals fell by 23% to reach a new low in June, and compared to the same time last year, are a massive 67% lower. The credit crunch in the banking system (mainly triggered by the mortgage crisis in the USA) has led to a rapid decrease in property sales and average house prices.

Although the Bank Of England has cut interest rates since the credit crunch last year, mortgage lenders have been moving their mortgage rates in the opposite direction, with the average two-year fixed rate deal for new borrowers being around 7%.

There are some companies on the market that will offer you the chance tosell and rent back your home, whereby you receive a high percentage of the market value (roughly 70%) and then remain in your home as tenants. This saves you the hassle of selling your home through an estate agent and sorting out a deal for a new house.

Landlords can also do this, however selling with a sitting tenant does have some complications attached to it and legal issues that you will need to examine.