London House Prices In Free Fall - What Now For the UK Mortgages & Bad Credit Mortgage Market?

What now for the mortgage and bad credit mortgage market with prices of homes in London and all over the UK falling faster in August than ever before?

Figures released by the online estate agents Rightmove state that new vendors i.e home sellers, are putting their homes on the market 2.3% lower than in the previous month of July!

This news comes on the back of monthly drops of 1.2% in July and 1.8% in June with the largest fall has been in London where home owners are putting up their houses for sale with reduced asking prices of 5.3% compared to a slight increase of 0.3% the month before.

This information would mean that UK asking prices are falling faster this August than ever before with London in particular offering on average the most substantial reduction of £21,000 in the one month!

However the good news for Londoners is that despite the large fall this month overall prices are only 3.8% lower in London than last year which compares favourably with the national figure of 4.8%.

The realignment that has occurred in the last few months comes as sellers who don’t have a pressing need to sell choose not to enter the market, leaving a higher number of forced sellers who must price their property far more aggressively.

The downward spiral in prices is likely to further disrupt the mortgage market as lenders will look to further cut the loan to value (LTV) they are wiling to lend at to protect their interests and mimimise risk. This is likely to have an even greater effect on the availability of sub prime or bad credit mortgages.

Bad Credit Mortgage Demand Increases As London Tops The Consumer Bad Debt Table

Consumer bad debt continues to increase in the South East and in London City in particular. Bad credit mortgage figures aren't even included in the statistics as they’re based solely on unsecured debt, according to a recent survey.

The largest indebted districts are the City of London with average consumer borrowing of £41,002! This is followed by areas such as St. Albans at £32,650, Watford at £30,748 and Stevenage on £31,533 all in Hertfordshire. This is closely followed by South West London at £30,251.

Remember, this excludes general mortgages, bad credit mortgages and secured loans so the overall situation is more dire than first imagined.

Whilst it’s acknowledged that the poorest get into debt most often it's also come to light that when the middle class or wealthy get themselves in financial trouble they tend to owe considerable more.

The substantial debts found in the City of London, St. Albans, Watford and South West London may be due to the fact the middle class’s have been allowed to rack up very large debts because of their high incomes, but have suddenly lost their jobs in the ongoing credit crunch.

No wonder the demand for debt consolidation bed credit mortgages continues to increase as one solution to the problem of unaffordable high interest short term loans, car finance and credit and store card payments.

However this favoured solution for many is now becoming more and more difficult to attain due to the ever increasingly strict lending citeria of high street and specialist sub prime lenders. To get the latest update make sure you contact The Bad Credit Mortgage Centre right now….

Bad Credit Mortgage Centre London News Update: 'Should we wait for a better fixed-rate bad credit mortgage deal?'

‘…We need a bad credit mortgage deals ‘cos we’ve got a poor credit record but want to know if we should wait for better fixed rate?’ asks B. Williams by email from North London.

Well, there’s no simple answer to the question as further problems hover over the housing market leaving bad credit borrowers feeling gloomer than ever. But good news is around the corner it would seem.

However, if you took your eye of the mortgage markets you would have missed the recent changes – mortgage rates including bad credit mortgage rates started creeping down again last week together with fixed rate mortgage rates.

The standard mortgage rates touched just under the 7% at 6.96% according to financial analysts Moneyfacts. With regard to bad credit mortgage fixed rates the reduction varies from lender to lender as their criteria varies considerable between lender and relative to the loan to value involved.

Larger higher loan to value (LTV) products carry far higer fixed rates with the maximum with a lot of lender at 75% LTV if you have any arrears in last twelve months with none in the last three.

The reason behind the recent reduction is down to the rate at which banks lend to each other on the financial money markets. These rates are currently dropping in expectation of lower long-term interest rates. It’s noticable that lenders such as the Nationwide, Halifax, Cheltenham & Gloucester and Abbey, have already begun to reduce their interest rates.

A cunning strategy for Londoners could be to apply to book a bad credit fixed rate mortgage right now at no cost to you and be ready to switch to a cheaper deal nearer the time if the situation becomes more favourable, say experts at The Bad Credit Mortgage Centre.

This way, you would be able to cancel today's pricier bad credit mortgage fixed deal for a cheaper future bad credit remortgage fixed rate at no extra cost; so if, by October, bad credit fixed mortgage interest rates have gone back up again, you'll at least have ensured you have a better, cheaper deal tucked away.

As you can appreciate, where mortgage rates will be by October nobody knows. However, it’s unlikely that you’ll get anything much lower over the next couple of months.

The best thing to do as always is to get the latest inf by talking to The Bad Credit Mortgage Centre today…