Mortgages Uncovered

Even if everything stabilized right now, the downturn looks worse than it had a few weeks ago.
Banking lending activity is essential for a good functioning economy.

Should the bank have less money to lend, or in fact have to do it on very expensive terms, it will restrain economic activity, much the same way it would if the Bank of England levered up its banking rate. Mortgage rates will start to go up.

Could my current employment position be in a precarious position?

Yes, potentially (and you don’t need to be an employee of HBOS, Lehman Brothers or Lloyds TSB to be affected).

With the current numbers at around one million of people who are unemployed it is at its highest level in 9 years and is at 5.5%. The number of redundancies have increased, and the number of people in work are dropping, large organizations are suffering with the crises and banks and estate agents are hit along with property developers, architects, the retail industry and the service industry with everyone cutting back their spend.

The unemployment trend is sadly, firmly on the up and will likely continue well until the economy does start to pick itself up again and people start to spend and invest again.