SOURCE: MPG Investments

November 29, 2007 09:03 ET

Worried Britons Face Unmanageable Debt

LONDON--(Marketwire - November 29, 2007) - The Citizens Advice Bureau in England and Wales deals with more than 6,600 debt problems every working day.

This shocking statement reinforces the Advice Bureau's revelation that the number of people who need assistance with debt has doubled during the past 10 years, with a 20% increase last year alone.

In relation to this, a article reports that Citizens Advice (, the UK's largest provider of free, independent debt advice, says its statistics show that a rising number of people are struggling to meet their day-to-day living expenses.

How debt affects day-to-day living

While the cost of living continues to rise, experts say that income levels have been growing very slowly in the UK. The combined effect of this and increased mortgage rates mean it's become increasingly difficult for homeowners to make bond repayments. To make matters worse, selling your house to get rid of debt is even more difficult as the property market in the UK faces a slowdown. This is because the growth in average house prices has slowed down as the price of properties has become unaffordable.

The Daily Telegraph recently reported that mortgage approvals fell 27% to their lowest level for any September in seven years. Approvals are the key measure of activity in the property market and a decline is seen as an early indicator of a slowdown in house prices.

According to chief economist at Nationwide (, Fionnuala Earley, they have been expecting the number of mortgage approvals to come down as potential buyers grapple with the problems of affordability, nervousness and the future direction of house prices.

To further substantiate these statistics, it has been reported that UK lenders have withdrawn 40% of their mortgage deals in the past three months. According to HomeMove ( lenders have become more cautious due to the increased risk of lending.

Lenders seem to be more cautious about lending large sums of money to people, particularly those with suspicious credit histories -- particularly if there is a chance that the value of their houses might fall at any time in the next few years.

In the meantime, according to The Home Buying Company ( a collection of surveys also suggest that the number of would-be borrowers is falling, a fact reflected in the drop in the amount of new mortgages being approved for house buyers.

Renting 'now cheaper than buying'

BBC News quotes market analysts, Hometrack (, as asserting that the cost of renting a house in England and Wales is cheaper than the cost of buying it with a mortgage. This comes as no surprise as an average house in Britain now costs more than five times the average first-time buyer's income.

According to them, private rents in 2006 were only two-thirds the cost of a 100% mortgage on a two- or three-bedroom house, for a young household earning an average income.

For many years, renting a home was thought to be just as expensive as buying one. But that position has been changed by the rapid rise in house prices. The article quotes Professor Steve Wilcox of York University, who carried out the analysis, as stating that in many areas, people who were unable to buy a house could still afford to rent in the private sector.

What is the answer to mounting mortgage debt?

Despite receiving some negative press coverage lately, property buying companies providing cash for houses offer a quick and easy alternative to escalating mortgage debt. Sell and Rent Back ( is a life-saving, life changing option for thousands of homeowners facing repossession and debt problems across the UK.

The reality is that property investment companies often offer the only viable option for a quick sale. This service becomes even more pivotal with the mortgage approval rate at its lowest in seven years, and the number of people looking to buy a new home falling at its fastest pace in three years during 2007.

How does Sell and Rent Back benefit homeowners?

Property investment companies have got the financial backing to purchase homes and have the cash deposited directly into the homeowner's bank account -- sometimes in only 7 days. With their debt paid off, the previous homeowners then have the option to rent their home back at a standard rental rate.

Thus, in actual fact, homeowners not only have the opportunity to avoid rising mortgage payments, pay off debt and even have some cash left over for personal use, but there's none of the hassle of trying to find alternative accommodation. After all, they can stay in their own house, renting it for less than their monthly mortgage repayment.

About MPG Investments

Established in 2003, MPG Investments ( -- one of the first companies in the UK to enter the property buying market -- offers straightforward business practices and takes pride in its transparency.

All Sell and Rent Back clients are protected by a standard AST (Assured Short-hold Tenancy), which is a legally binding document that guarantees tenancy for the period agreed on. At MPG, the maximum tenancy term is 3 years, their rental fees reflect current market value for the area and it's fixed for the period of the AST.

Another fact they're open and honest about is that they offer homeowners between 15 and 25 percent below market value for their homes. However, in the current climate of rising mortgage payments, increasing debt and fewer buyers, a cash offer from a property investment company like this might possibly be the best offer you're likely to get.

Every client is dealt with in a professional manner, receiving an overview of the services and house-buying processes. MPG offers free valuations throughout the UK, and will make a guaranteed written offer to the client within 48 hours of the valuation.

If debt is at the top of your list of worries and repossession is right around the corner, then consider the fast, professional service of one of the UK's premier cash property buyers -- MPG Investments.

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