Unemployment Hits Homeowners

The Office for National Statistics has revealed that unemployment in the UK has risen to its highest level since 1997. Figures show that over the third quarter of 2008, the amount of people out of jobs has increased by 140,000, totalling the amount of unemployed at a huge 1.825 million, a figure which is set to increase.

The sharp increase in unemployment does not take into account the simultaneous job cuts by many household names that have taken place this week. Job cuts have been announced by major names such as Virgin Media, Taylor Wimpey and today, BT. As one of the most recognisable household names in the UK, BT are set to cut 10,000 jobs before March. This accounts for 4,000 cuts that have already been made and a further 6,000. BT’s global workforce amounts to 160,000 employees, however, the major job cuts are likely to be predominantly taken from its UK workforce. The wave of cuts in jobs by major companies is a knock-on effect of falling profits. BT reported an 11% fall in profits during the second quarter.

Major multi-nationals such as Vodafone are expected to cut their pool of employees in order to cut costs. Vodafone announced earlier in the week that they would be cutting costs by £1billion and this is likely to involve several thousand job cuts. As companies continue to cut jobs, the unemployment level will continue to rise. The Institute of Directors have predicted that the increase in unemployment will peak at 2.8 million by 2010.

Mass unemployment is a further blow in a series of financial crises which include a huge downturn in property prices and a severe reduction in mortgage availability which in turn have led to a significant increase in repossessions. Although the cut of interest rates by 1.5% by the Bank of England should ease these issues, it is dependent on whether banks will pass on the cut. For the many that are facing negative equity or are facing unemployment, a cut in interest rates will make little difference.

Homeowners facing unemployment may find that they are struggling to meet mortgage payments as a result of redundancy. If you are concerned that you cannot meet mortgage payments and are worried that you cannot sell your home due to current economic conditions, Swift Capital could provide a solution. We will buy any property in any condition and what’s more, we will sell your house quickly. Usually, we offer up to 80% of the value of your home and in many cases you can stay in your home as part of our selling agreement.

Swift Capital can provide a solution for those who have felt the impact of the credit crunch and can no longer afford to meet mortgage payment. We can literally complete payment in a matter of days; you no longer have to wait for a buyer to agree a sale. There are no agent’s fees either. Our simple solution is an alternative to traditional methods of equity release. Contact Swift Capital today and see if we can release you from the restraints of paying a mortgage you cannot afford.