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In a move to help homeowners who are unable to move house because of negative equity, Nationwide have announced that existing borrowers will be able to obtain a mortgage of up to 125%.

Customers can obtain a new loan based on 95% LTV. They can also carry over up to 25% of the loss on their existing property. The 95% loan will be on a fixed rate with a higher interest rate attached to the negative equity balance carried over.

It is considered other lenders are considering something similar.

This is a very surprising move in the current environment when mortgage lenders have become extremely cautious and are mainly targeting those with high deposits.

The Association of Residential Letting Agents (ARLA) has this week reported an increase in the number of tenants struggling to meet their rental payments. Almost two thirds (65%) of members surveyed reported an increase over the last six months of those having difficulty paying their rent.

In the current economic climate tenants are frequently experiencing cashflow problems. And as a result landlords are now suffering delayed or missed rent.

It is therefore more important than ever for landlords to be fully aware of their options regarding late paying tenants.

But do you know what steps are open to you if your tenant fails to pay on time?

UK average monthly rents are £795 per month. Therefore each weeks delay in taking the appropriate action could cost almost £200.

What are the steps you need to take to recover your rent?

The best time to do your research is before this problem arises. If you do not look into your options until rent arrears have already built up you will be wasting valuable time and allowing arrears to grow further.

To help landlords I am running a seminar to guide you through the legal options available to you.  In just one hour you could be fully prepared and aware of your rights and the legal process involved in dealing with rent arrears.

How would it feel to be taken step by step through the legal options available to you?

My teleseminar does just that………

In this 1 hour seminar you will learn:

• The best option to follow if you want possession of the property
• The best option to follow if you want arrears repaid
• The typical timescale for court proceedings
• The effect of making an error in your court application
• The additional option available if you have an assured shorthold tenancy

This informative free one hour seminar will  give you a step by step guide by legal expert James Picknell of Mundays Solicitors LLP and will ensure that you are fully up to date with your options should you experience late paying tenants.

In just one hour you will get all this information at no cost to you.  Ensure your business is fully prepared for all eventualities by registering for your place today. Click HERE for details.

Rates started to increase initially due to expectations that interest rates will be considerably higher on the future. This followed a rise in the swap rates- the rates which determine the cost of bank funding.

However, fixed rates have continued to increase, even though swap rates have stabilised. . This is because banks are less willing to lend. The shortage of bank funding has seen banks increase rates to control demand. Once one lender starts to increase, all other lenders follow suit, because no lender wants to be the one with the cheapest rate picking up all the business.

The most attractive rates are still reserved for those with large deposits or significant equity in their home. First time buyers continue to struggle to get a decent rate

Since fixed rates have now already priced in considerable rises to the base rate, it becomes a more difficult decision to determine whether a fixed rate or tracker rate is the best option. If rates do not rise as quickly as expected, the fixed rates may end up looking expensive compared to trackers.

Make sure you discuss your priorities and your budget with your mortgage adviser to determine the best option for your circumstances.

The Nationwide House Price survey showed an increase in house price in June of 0.9%. This follows an increase of 1.3% in May and now brings the house price reduction to 9.3% for the past year.

It is the first time since December 2007 that the 3 month change figure has been positive.

Although house prices have fallen nearly 10% in the last year this is the first time in 3 years that the annual rate of decline has been in single figures for almost a year.

All this is very welcome news. However restricted mortgage lending, fear of unemployment and the weak economy will prevent any significant improvement in the property market.

Until lenders become more willing to lend to those with less than a 25% deposit I cannot see how the market can have any sustained recovery.  Until first time buyers can get onto the property ladder the whole house buying process is at stalemate.