Property Rescue Blog

The annual growth in take home pay has dropped to an all time low of 1.8% and saw an unprecedented fall of 0.2 per cent during January as employers make drastic cuts to save their businesses from collapse. 

Honda is just one of the companies that has stopped or cut back on car production as the recession hits the motor manufacturing and subsidiary industries.  Reduced hours, cuts in overtime or a shorter working week are becoming common place across many business sectors leaving workers with less cash in their pockets. 

Jobless totals just announced reveal that there are now more than 2 million people out of work in the UK and redundancies have reached a record high.  From November 2008 to January this year 165,000 joined the ranks of the unemployed.  Not all of the 6.5% of the British working age population without a job are entitled to benefits but those on Jobseeker’s allowance rose during February by a staggering 138,400, putting yet more strain on an already over-stretched government purse.  Job vacancies are down too, so getting another job is not easy – at least in the short term.  The UK’s recession is unlikely to be over during 2009 and some doubt that 2010 will see much of a recovery.  More optimistic economic experts predict that next year will bring some signs of growth but it will be slow, holding to the generally accepted principle that unemployment figures remain high even after recovery has begun. 

The net result is that many household budgets are close to breaking point.  Mortgage payments have dropped but not to the same extent as bank rates.  Interest on savings is negligible and whilst this might not be of particular importance to the young family who has little in the way of a ‘rainy day’ fund, it has a real impact on the retired who rely on a decent rate of interest to bolster pensions.  Households that went into the recession in a healthy financial state and remain employed are, in general, coping well; it is those who were already paying off debts and have been further hit by reduced working hours or job losses who are faring the worst.

If debts spiral out of control your home can eventually come under threat.  Repossession has repercussions that last many years, affecting your credit rating and your ability to get future finance.  These factors, as well as the significant stress and upheaval involved, mean that repossession should be viewed as an absolute last resort.
 
With help from Property Rescue it is possible to beat repossession, keep your home and live in it as a tenant.  The scheme works by selling your home to Property Rescue and then paying rent under a tenancy agreement whereby your rights are safeguarded.  But if you want to remain a homeowner you may decide it is best to sell up and move on, paying off your debts and buying a cheaper property.  In a declining market selling in a hurry is nigh on impossible but again, Property Rescue can help.  They guarantee to value your home and, if you accept that valuation, you can sell up and move within a matter of weeks or even days.

If you are facing what seems to be a financial dead end, contact Property Rescue.  You can talk to one of their advisers in complete confidence and without obligation.

The total of people out of work in the UK is now close to 2 million and rising steeply; the Bank of England warns that the recession is likely to be longer and deeper than previously anticipated, and that no matter what actions the government takes the overall outcome is closely linked with other global economic forces.

Even people in relatively secure jobs are starting to feel nervous about the future.  Those under threat of redundancy or who have already lost their jobs are eager to know what Job Centre Plus and other government agencies can do to help them.  Some of these people are facing personal financial crises that will not be eased until they can get back into work.  For some, there is double trouble because both partners in the relationship were employed by a business that has gone under.  A good example of this is the collapse of Woolworths: a major employer whose demise put 30,000 employees out of work.  The impact on the family budget is obvious in any redundancy but is especially traumatic where two or more people from the same household are affected.

A study by the TUC has pointed out that women’s jobs are more likely to be hit as the recession deepens.  There is evidence that women are already being made redundant at almost double the rate for men; complaints are being voiced that women are the subject of discrimination, despite legislation designed to stop this happening, but it is also true to say that many employers in the retail and hospitality sectors – which have been hard hit – have a high percentage of female workers.

Stress caused by unemployment and its consequences has a very real effect on health and family breakdown.  One of the largest causes of people visiting their GP, stress is an affliction of the modern age but doctors are starting to see the incidences of stress rise dramatically.  Feelings of anxiety are often made worse because the person concerned feels that events are happening around them and there is nothing they can do to control the outcome. 

Anyone in this situation should take heart.  Firstly, make use of agencies such as the Citizens Advice Bureau, which are set up to help people take action and direct them to available resources.  Secondly, remember that lots of people do come through redundancy and make a new career for themselves.  Although painful at the time, a path that otherwise would not have been taken can lead to a real transformation of lives…for the better!  Thirdly, if you are facing the possibility that your home could be repossessed, take advice on your options and liaise with your lender.  If there is no way out of the repossession, contact Property Rescue.  Their guarantee to buy your home will give you an option to sell up, avoid being made bankrupt and all that entails, and even allow you to remain in your home as a tenant should you so wish.

For more information, contact Property Rescue today.

The latest unemployment figures show 1.92 million people were out of work at the end of November last year.  Bearing in mind that almost two months have passed since this time and further redundancies are being announced on an almost daily basis, this figure cannot reflect the true number of those without a job.  One substantial employer not included in these statistics is Woolworths, which closed stores up and down the country in the lead up to Christmas and early in the New Year. 

The TUC has reported that women are first in the firing line when it comes to redundancies, currently being twice as likely as their male counterparts to lose their jobs.  Perhaps this is because more women work as shop assistants in a hard hit retail sector but whatever the reason, women’s wages make up an essential part of many household incomes and their loss will have a severe impact on family budgets.

Every job loss represents a family or an individual who is suffering loss of income, often loss of self esteem, and sometimes the loss of a home.  Mervyn King, the Governor of the Bank of England, has made it clear that the recession is unlikely to end soon.  In fact, his predictions as to when the economy is likely to start growing again are so uncertain that he has been accused of making the money markets more nervous than they are already.  A deepening recession inevitably leads to more job losses.  Employers are looking for ways to reduce their wages bill by cutting jobs, freezing headcount and reducing work outsourced to agency or temporary personnel.  To forecast a bleak outlook may be pessimistic but to do otherwise would be unrealistic.

The threat to homeowners is significant.  Interest rates are low but mortgage repayments remain the biggest financial commitment for many households.  Without a regular income, defaults on loans are sure to rise.

If you are struggling to pay your mortgage you should talk to your lender or approach one of the free independent debt advice agencies who will help you tackle the problems.  When debts and loss of income are short term the threat of repossession can usually be avoided.  But a different solution will need to be found for those who are without work long term and simply cannot meet their financial commitments. 

Property Rescue has strong financial backing that means they can make an offer for your home, regardless of its condition or location.  They will present you with a free valuation, which – if you accept – can be followed up with a sale within a matter of days, thus avoiding repossession and allowing you to re-build your lives in a cheaper property or rented accommodation.  There is even a ‘buy and rent back’ scheme that means you can stay in your home as a tenant after the sale.  To find out more, contact Property Rescue for a free, confidential discussion.