The Bank of England released its latest inflation report this week. All eyes were on the Bank’s governor, Mervyn King, as he delivered the bad news that had been anticipated – that inflation is up (currently at 4.4%) and is likely to go up yet further, peaking at around 5%.
Mr King described the situation as “painful”; no under-statement for the thousands if not millions of people who are just about managing to make ends meet whilst they live in fear of inflation rising yet further. For these households there were few rays of hope n the bank’s report.
Output growth has slowed in the UK over the first two quarters of the year. When figures are released for the third and final quarters, the Bank of England expects to see further slowing and little change during 2009. But there is a caveat: the Bank says that the slowdown may be “more pronounced” with the possibility of negative growth. In fact Mr King comments that the “outlook is unusually uncertain” and points to significant risks that could affect its projected figures.
It is inevitable under such circumstances that pressure is put on every household’s income, even those who have, until recently, considered themselves well off. There is evidence that up-market suppliers of products – such as organic or farm produced food – are seeing a drop in their sales as people look to the cheaper supermarkets for a bargain. Oil prices have started to retreat back down the scale but food costs are unlikely to do so. Spending on credit is restricted and this has an obvious effect on spending in the high street.
Bank rates remain at 5%, despite industry wanting a cut and homeowners feeling the strain. Although it is often high interest rates that produce a rise in home repossessions, in the present situation it is more likely to be food and energy prices that are turning the knife in the household budget. Repossessions are rising steadily – perhaps an inevitability in such circumstances. But anyone who faces the threat of losing their home owes it to themselves and their family to explore all the options before packing the furniture and moving out.
Talking to the lender in question is always the first step. Voluntary and government funded agencies can help households budget, prepare payment plans and communicate with mortgage companies and banks. If, despite this type of intervention, mortgage repayments simply cannot be met then there may seem little option. Property Rescue is a company that buys home for cash. They have the ability to step in at the last moment to salvage the situation and help avoid repossession taking place. Their guarantee of a sale allows families to move on with their lives, perhaps buying a lower priced property, living in rented accommodation, or by taking advantage of the Property Rescue sell and rent back scheme.
The economic gloom that has descended on the UK may be out of our control but there are options when it comes to personal finance – even though it may not always seem like it. For information and a free, no obligation chat, give Property Rescue a call.