If you’re facing repossession on your Edinburgh property, you may feel overwhelmed, concerned, and unsure about what the future holds.
While it may seem like a stressful time, there’s no need to fear. Many people are in the same situation as you and there are many different routes for you depending on your individual situation.
In this help guide we’ll talk you through what you can do if you’re facing a property repossession in Edinburgh, from what happens if you miss a mortgage payment, right through to steps you can take to prevent your property from being repossessed. We’ll even explain how you can sell your home if you’re facing repossession.
What happens if you miss a mortgage repayment?
Most house repossessions start with a missed mortgage repayment. If you miss one payment, don’t worry, this is very unlikely to be enough to alert your bank as long as you make the payment shortly after it was due.
If you’re unable to make the payment quickly, we strongly recommend communicating with your lender as soon as possible. Keeping them in the loop with your situation will make them less likely to act rashly, especially if they know you have a plan for repaying the missed payment.
Late fees
It’s worth bearing in mind that you may incur a late fee if you miss a scheduled mortgage payment.
This could be a set fee for any late payment, or a percentage of the amount missed that you’ll be required to pay.
What to do if you miss a mortgage repayment & are facing repossession?
If you miss one or more mortgage payments and are facing repossession, there are a number of options available to you. We’ve explained each of these in detail below:
Contact your lender
The first, and arguably most important, step if facing house repossession is to contact your lender.
Communication will reassure your lender that you’re doing your best to make the outstanding payments, and they’ll be keen to help you meet these as it will be in their interest to get you back on track with your repayments.
Take in a lodger
To help meet mortgage payments more easily, you could consider taking in a lodger.
This idea is perfect if you have a spare room that isn’t regularly used, as you can make some extra income on your property which can go towards future or outstanding mortgage payments.
Rent out your home
If you’re concerned about the sustainability of regularly meeting your mortgage payments, you could always rent out your home.
It’s widely known that rental income far exceeds the cost of mortgage payments, and therefore could enable you to pay off your mortgage while earning some extra money too.
Consider selling your home to a cash house buyer like We Buy Any Home
If you’re considering selling your property, you could sell your home to a cash house buyer like We Buy Any Home.
We have many years of experience selling Edinburgh properties that are under repossession and can make this somewhat complicated process much easier for you. To get a free cash offer for your property, visit our website today.
Are mortgage interest rates going to go up again?/Will mortgage rates continue to rise?
Mortgage rates have been rising over the last few years, primarily due to the cost of living crisis and subsequent rise in inflation, along with the after-effects of the COVID-19 pandemic.
It’s likely that mortgage rates will increase to as high as 5.5% this year due to a 31-year-high inflation percentage of 8.7%. Movements in interest rates in the bond markets have also continued to increase, which is having a subsequent effect on mortgages.
When will mortgage rates go down?
Mortgage rates are expected to go down in the Autumn of 2023, with the amount that banks need to pay to borrow money starting to fall. This will allow them to offer better rates to those looking to take out mortgages, with decreasing inflation helping to further decrease rates too.
It’s likely that mortgages will come down to nearer 4% from 5% towards the end of the year, which should also help to boost buyer demand for Edinburgh properties.
What to consider if you’re getting a mortgage in Edinburgh
If you’re considering taking out a mortgage on an Edinburgh property, there are a number of points you should consider.
Fixed Mortgage vs. Variable Rate/Tracker Mortgage
There are three different types of mortgages that you can apply for, each offering different benefits.
A fixed mortgage is one in which the rate is set for a contracted period – this could be 2, 5, or 10 years. This means that your payments will be the same each month, and won’t be affected by rises/falls in variable rates.
A Tracker Mortgage will be linked to the Bank of England base rate and may change each month based on this. This may work in your favour if mortgage rates drop, however, it could increase if rates go up.
A Variable Rate Mortgage is similar to a Tracker Mortgage, however, it will be linked to the specific lender’s variable rate. This is subject to change regardless of how the Bank of England base rate changes.
Deposit
Another point to consider when taking out a mortgage in Edinburgh is the deposit you’re able to put down.
The larger the deposit you can raise, the lower the interest rate you’ll be eligible for. You will need to raise a deposit of at least 5% to qualify for most mortgages, however, some lenders will require higher deposits of 20% or 25%.
Credit Rating
Your credit rating is also something you’ll need to bear in mind when getting a mortgage on a property in Edinburgh.
A credit rating will give a lender an indication of how responsible you are when it comes to repaying credit. Lenders will run a credit report on you to determine your history when it comes to loans, credit cards, overdrafts, and previous mortgages, which will help them to decide whether you’re likely to be a reliable candidate for a mortgage.
It’s worth running a credit report on yourself prior to contacting a bank to determine whether you need to improve your credit rating first.
How We Buy Any Home Can Help
If you’re facing repossession on your Edinburgh property and need to sell your home, We Buy Any Home can assist you.
We have many years of experience purchasing homes in the Edinburgh area that are under repossession and fully understand the ins and outs of helping sell properties in this situation.
Simply request your free cash offer via our website and one of our experienced team members will be in touch to provide you with an accurate valuation. At this point, providing you’re happy to proceed, we’ll appoint you a solicitor and property surveyor of which we’ll cover the cost, and shall provide you with a final valuation. If you decide to go ahead with us, you could receive your property funds in as little as 7 days!
Get a free cash offer for your Newcastle property today and sell your Edinburgh home fast.
