Property Rescue Blog

The Financial Services Authority (FSA) Mortgage Market Review September 2009 included a proposal calling for the ban of self-certified mortgages, asserting that all borrowers should be required to demonstrate their ability to afford repayment of their home loans.

As if the economic crisis did not place enough pressure on hardworking UK residents, a study conducted by the Financial Services Authority (FSA) has found that mortgage lenders have engaged in overly aggressive treatment towards borrowers in arrears.

In September 2009, nearly 200,000 mortgages had fallen into arrears by at least 2.5% of the outstanding balance.

Mortgage advisors have warned of shortfalls in the amount available for lending, due to a lack of funds from mortgage companies.

As the economic crisis continues, cash flow problems continue to rise, with recent information showing that 32% of people made redundant would not be able to meet their current living expenses within the first month of unemployment.

Just two years ago, the rate of people 55 and over who were planning to work beyond the state pension age was at 40%. Research shows that number has now jumped to 71%, which suggests that the current recession has decreased house values, investments and pension pots.

Research shows that more than 1 in 10 (16%) workers who currently have a pension report that they have recently stopped contributing to their pension at all, or reduced their contribution amounts, due to the credit crunch and tough economy.

UK residents are currently struggling with debt and unemployment at levels that most have not previously experienced in their lifetime. Over 2,000 people per day lost their jobs just during October, 2009, of which 1,500 per day filed for unemployment benefits.

November 2009 saw a record high in the UK’s public sector net borrowing, which reached £20.3bn.

In yet another blow to UK workers, the government has chosen to allocate funds to purchase 22 new Chinook helicopters. The government expects to receive the first half of the order in 2013, which will possibly be used in Afghanistan. To help pay for this planned acquisition, Bob Ainsworth is expected to announce the phasing out of numerous defense jobs and the closure of at least one military base, most likely RAF Cottesmore in Rutland. This will lead to the loss of thousands of jobs, increasing the UK unemployment rate even further.