In the last 2 weeks we have seen a significant uplift in enquiries from home owners struggling to meet mortgage payments across the UK. Through no fault of their own home owners have fallen behind with their mortgage repayments and are falling into arrears putting their homes at risk.
This comes as we see mortgage breaks granted in March this year approach their end. Many are already worried how they will meet the increased repayments on their home when these repayments restart.
With thousands facing redundancy, companies and self employed businesses ceasing to trade we will undoubtedly see the impact of Covid 19 for many years to come as the economy works to recover.
For those who are lucky enough to be able to maintain an income, there is a very realistic prospect of increased taxes in the future in order to plug the gap caused by the financial crisis and support extended by the Government. With the global markets being impacted the UK Government is working to regain public confidence and encourage spending, but is this too much too soon? This effort to return to normality has been met with mixed responses. The public remain cautious resulting in a no return for many businesses.
While the Treasury tries to kick start the retail sector, introduce green housing measures and publicise new opportunities for growth by creating affordable housing the fact remains that many are still stuck with mortgage debts by way of negative equity from the property crash in 2008.
In reality, many households now face increased debts while supporting their family’s living costs and many will be facing losing a family home due to lack of income. Are the Government’s new proposals to create greener homes and look to building a bigger and brighter economic future simply an Ad Campaign for a new post Brexit UK? This optimism must surely be congratulated if it works out however, meanwhile those in debt face a worrying time.
In October this year we will see Banks and Consumer Credit providers be in a position where they can once again seek recourse through the Courts. Repossessions that were previously stayed for a period will once again reopen. We expect the impact of this will filter through the first quarter of 2021 and we expect to see a rise in both Bankruptcy cases and IVA appointments.
If you are struggling please don’t wait get in touch now to review your options and get on the road to get your finances back on track.
