Let's get the market moving, says Mason

Newly appointed MD at Moneyextra.com Richard Mason has spelt out his vision for getting the UK property market moving again. Mason has identified several areas of the market where opportunities are being missed because of the dearth of mortgage options currently available to borrowers, a fact highlighted with its exclusive research.

"We're seeing unprecedented opportunities in the housing market at present, however it's now a question of what access people have to the right information and lending products that will enable the take-up of those opportunities, and consequently get the market moving again," said Mason.

"The current drought in lending has made it increasingly difficult for people to purchase houses, resulting in a wider knock-on effect on property prices. The number of available mortgage products has reached a new low, having fallen by 84% over the past year and 89% since its 2007 peak.

"Moreover, the point at which the housing market ‘bottoms-out' has been further prolonged by lenders delaying action against customers that fall into arrears for six months. This Government intervention, whilst well intentioned, has lulled borrowers into a false sense of security and consequently delayed them from taking positive steps to resolve their financial difficulties.

"However, in spite of the perceived gloomy outlook, borrowers shouldn't close their eyes to current opportunities in the market. Whether you're looking to move up the ladder, or are in financial trouble and need to sell, a solution is obtainable and borrowers need to make sure they have the right information to hand in these challenging times."

Moving on up

The current economic conditions have created opportunities not seen for many years in the UK. "If you‘ve lived in your property for several years the likelihood is that's its value has increased over the years, more than it's decreased in recent months," continued Mason. "Utilising the capital already built up within your property creates a prime opportunity to trade up."

"If the price of your current home has been gently decreasing over the past six months, don't despair; it's worth remembering that the price of your next home will also have simultaneously decreased. Typically this means that the margins of trading up - moving from a flat to a small house for instance - have narrowed, making now an opportune time to move if you can afford to."

Cutting the costs of conveyancing

Mason went on: "With the market in its current state you can take advantage of cut-price deals on ancillary costs related to moving - from the removal men you hire to the lawyer who prepares your documents, everyone is feeling the pinch and hungry for work. Our advice is to negotiate! Moving can be an expensive business so we think now is a great chance to do a big move at a cut down price."

Taking the first step

Despite first time buyers being among the hardest hit, those with a deposit should view now as the perfect opportunity to snap up a bargain. With prices down 15.9% according to research, now is a great time for thousands of first time buyers to get into the market. "Nobody can afford to ignore the opportunities that presently exist," continued Mason. "The huge decline in available mortgage products has started to slow, which indicates the bottom of the market is just around the corner - this window of opportunity is unlikely to be around for long. In today's market, borrowers require a minimum 15-20% deposit to become eligible for more than 5% of available mortgage products."

Climbing down the ladder

For those people who are struggling to keep up with their mortgage payments, immediate action is the best remedy, according to Mason. "We're seeing people who are allowing things to drift and having their homes repossessed as a result. It's sad for us to see because in many cases this could be avoided with swift action. However panic sets in and people typically close up to new ideas and are forced to sell their property through the bank. Typically selling a repossessed home via the bank means a sale price 10-15% lower than a homeowner selling it themselves, so there's a very real chance of people losing big money here. Our advice is to spot when trouble's coming, don't stick your head in the sand, sell your house, pay up your bills and clean up your finances - even if you have to rent for a few months before you find a new home, you'll still save the money you would otherwise throw away through repossession and your credit record will remain intact."

Finding your way to a new home

"Market information and access to the best products is absolutely vital at the moment" continued Mason. "People need advice from real financial experts to guide them through the market, and at Moneyextra.com we have a team recognised by the FSA for their expertise who can answer questions and help them to take the opportunities that are out there right now. Don't sit still and don't bury your head in the sand - whether you're getting on the ladder, trading up or trading down now's the time for action."