INFLATION STARTING TO BITE
This morning we were advised that local gas prices are to increase some 12% in the next couple of weeks. This follows the general trend across the UK economy that inflation is on the rise, which will ultimately affect the amount of money people have in their pockets.
Over the last seven years, our team has been helping people deal with their negative equity positions that came off the back of the property crash in 2007. An observation on this market is that over the last twelve months, many of the people we spoke with in 2013/14, and whose mortgages deals had a few years to run, are now back in with us as their terms are up and due to their negative equity positions, cannot remortgage.
Ten years post the property crash in NI and the reality is that many people across the board still find themselves in extremely difficult financial positions. The negative equity problem is one that most of us thought would be well worked through at this point however unfortunately is not the case.
It has also been interesting in terms of observing the various banks positions on dealing with debt forgiveness over the years. I have seen of late were some of the banks appear to be prepared to take a longer view asking people to pay whatever they can over a long period of time hoping their circumstances change. Other institutions have hit the nuclear button, and have sold non-performing loans to American private equity funds.
What we have now in the economy of N Ireland is a cocktail of non-performing loans, which are yet to be sorted out. This is having a significant impact on households, businesses and ultimately our economy.
The solution from a debtor’s perspective is to take the first step and “ask for help”. Burying your head in the sand and hoping the debt disappears or letters stop coming through the letterbox is not a realistic position to take.
Since the start of the year our team at GDP EQUITY EXPERTS have reached agreement with banks on our clients behalf on a range of negative equity positions. This allows our client to finally move on and avoid bankruptcy.
If you find yourself or you know someone in this position, contact our office for a discreet conversation on this matter today.
Conor Devine MRICS