Property News > Unemployment Rise Hits Homeowners

Unemployment Rise Hits Homeowners

Unemployment figures released this week show 1.79 million people out of work in the UK (measured between May and August 2008); the highest number since the 1990s. This figure is expected to increase to 2 million by the end of the year, with many analysts predicting further rises during 2009. The construction industry has been hard hit as work slows or stops completely on new builds throughout the country. As well as affecting those directly involved in building trades it has a knock on effect for suppliers and manufacturers. Additionally, the manufacturing sector - already weak in the UK - has recorded an all time low in the number of people it employs.The UK is a nation of small businesses, many of which are sole traders or employ under 10 staff. It is these that are affected most immediately when work dries up. Without large asset value or access to funding they can find themselves in a cashflow crisis that can bring them down within a few months or even weeks. This is compounded by the fact that nervous banks are reluctant to renew loans or allocate new investment, especially to businesses that are struggling. For every 'statistic' whose business goes under or who is laid off due to lack of work there is a personal story of hardship. Many of these are homeowners with mortgage payments that become difficult - or in some cases, impossible - to meet. The minority will have insurances that meet the cost of mortgage interest, but those who default on their repayments will increase the burden of an already serious problem for the lenders. As unemployment rises there is sure to be an increase in the number of repossessions taking place. With house prices continuing to fall, some lenders will find themselves having to accept a sale price that is lower than the outstanding mortgage.At a difficult time for homeowners it is reassuring to know that there are options open, even when the situation looks bleak. Lenders will encourage you to talk to them about making different arrangements whereby you can meet your payment obligations. For example, they may be prepared to lengthen the term of your loan, or accept smaller (or interest only) payments for a period of time until you get back on your financial feet. Always communicate with your lender when times are hard. They will be much more responsive to you at this stage than if you bury your head in the sand until the situation is critical.If you simply can't meet repayments, you might want to explore other options that will allow you to stay in your home. There has been some negative publicity about the less reputable companies that offer buy and rent back schemes. Property Rescue has a sound financial backing. Their experts have years of experience in many aspects of the property market and will explain all the options to you clearly before you make any commitment. If this is an area that you want to explore, then explore it with Property Rescue. Valuations of your property are free and there is no obligation to proceed.Call for more details about how the scheme works.Unemployment figures released this week show 1.79 million people out of work in the UK (measured between May and August 2008); the highest number since the 1990s. This figure is expected to increase to 2 million by the end of the year, with many analysts predicting further rises during 2009.The construction industry has been hard hit as work slows or stops completely on new builds throughout the country. As well as affecting those directly involved in building trades it has a knock on effect for suppliers and manufacturers. Additionally, the manufacturing sector - already weak in the UK - has recorded an all time low in the number of people it employs.The UK is a nation of small businesses, many of which are sole traders or employ under 10 staff. It is these that are affected most immediately when work dries up. Without large asset value or access to funding they can find themselves in a cashflow crisis that can bring them down within a few months or even weeks. This is compounded by the fact that nervous banks are reluctant to renew loans or allocate new investment, especially to businesses that are struggling.For every 'statistic' whose business goes under or who is laid off due to lack of work there is a personal story of hardship. Many of these are homeowners with mortgage payments that become difficult - or in some cases, impossible - to meet. The minority will have insurances that meet the cost of mortgage interest, but those who default on their repayments will increase the burden of an already serious problem for the lenders. As unemployment rises there is sure to be an increase in the number of repossessions taking place. With house prices continuing to fall, some lenders will find themselves having to accept a sale price that is lower than the outstanding mortgage.At a difficult time for homeowners it is reassuring to know that there are options open, even when the situation looks bleak.Lenders will encourage you to talk to them about making different arrangements whereby you can meet your payment obligations. For example, they may be prepared to lengthen the term of your loan, or accept smaller (or interest only) payments for a period of time until you get back on your financial feet. Always communicate with your lender when times are hard. They will be much more responsive to you at this stage than if you bury your head in the sand until the situation is critical.If you simply can't meet repayments, you might want to explore other options that will allow you to stay in your home. There has been some negative publicity about the less reputable companies that offer buy and rent back schemes. Property Rescue has a sound financial backing. Their experts have years of experience in many aspects of the property market and will explain all the options to you clearly before you make any commitment. If this is an area that you want to explore, then explore it with Property Rescue. Valuations of your property are free and there is no obligation to proceed.Call for more details about how the scheme works.

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