Much of the consumer spending boom in both the US and UK, has been led by rising real estate values. Some have sold their homes, using the net proceeds to fund purchases, but many more have re-mortgaged cashing in on the increase in value. This is fine, so long as their income is sufficient to re-pay these mortgages, at a time of rising interest rates. But should interest rates continue to increase, and worse still, if house prices slip back, many people will have problems in re-paying their mortgages. This scenario is already apparent is some markets, and is likely to become more widespread. What many people really need, rather than re-financing or selling their home in order to benefit from high prices, is an alternative which locks in the value of their home. They need a mechanism which enables them to remain in their home, but not suffer the risk of a declining house value. This now exist in the form of LIVE. These were developed precisely to address these problems, and afford a safe and effective means of ensuring that home-owners can remain in their homes, yet benefit from the massive equity gain the property has made. The City of London has long been in the vanguard of the world financial markets, and at www.livepropertyservices.com is an example of a product which achieves the dual aims of securing your property value, yet not requiring that you to repay a new loan. |
