Sell and Rent Back and Unemployment
Recession is here relentlessly knocking on our doors
and taking away our jobs and sometimes our homes. Big companies are
finding it difficult and some are closing down rapidly while people
watch in disbelief.
Unemployment is now out of control and is expected
to reach 3 million people before the end of the downturn according
to some independent economists. These are forecasting that the worst
is still to come and 100,000 people could lose their jobs each month
with one in ten being out of work before things start to get better
again.
It does not matter if a team of employees is outstandingly
good or have the best of qualifications or are 100% committed to the
company, many businesses are being forced to make some of their people
redundant simply because the banks are not lending and the company
without adequate cashflow has no other choice but to cut its workforce
to survive.
According to the Office for National Statistics people
made redundant now are unlikely to find another job in the present
climate. This is a recipe for disaster.
While businesses are closing down or are shrinking,
credit facilities for businesses are being curtailed, and unemployment
is raising uncontrollably it means that people have less to spend
and the businesses will continue to go downhill. In this scenario
house repossessions will reach unprecedented figures and some independent
economists are suggesting a staggering figure of 400,000 repossessions
by the end of this recession
which it is predicted to last another four more years.
In this mess, keeping the roof over your head has
to be the number one priority. Unemployed and with slim chances of
finding another job, homeowners may quickly become homeless. With
8.5 homes being repossessed every hour action must be taken without
delay. The sell
and rent back scheme came to the market to give hope to those
homeowners threatened with repossession due to unemployment.
It would be wise in the current climate for those
who are still employed to protect their mortgage repayments through
MPPI – Mortgage Payment Protection Insurance. These policies
can be real saviours and if researched properly can be affordable.
Be aware that the best time to apply for one of these is when you
are quite safe in your job because job stability is one of the factors
considered by the insurance underwriters before issuing a policy.
These policies have an initial exclusion period which
debars any claims. They also have a deferral period when a claim is
made before any benefit becomes payable so it is necessary to make
sure that some money is set aside to cover this lean period. Also
cover cannot be obtained by people who are self-employed or are contract
workers.
The sell
and rent back scheme gives homebuyers the chance to take advantage
of any equity that they have in their homes at a time when it is most
needed, so enabling them to get through the downturn safely, keeping
the roof over their heads.
If unemployment is already knocking at the door do
not panic. The first thing to do is to examine your finances as never
before. Be meticulous in cutting out all un-necessary expense like
cable TV and superfluous subscriptions. Try supermarket own brand
goods which are normally cheaper and are frequently much better than
expected.
Swallow your pride and take a part time job if you
can find one. Remember that the important thing is to pay the mortgage
and buy food. Communication with others is vital when unemployed so
do not try to hide the fact because you are too embarrassed for others
to know. They might be in a position to help by knowing of a vacancy
or someone else who can help. Also do not lose contact with your previous
boss and colleagues because they will help if they can and there is
always the possibility that you may be rehired. If you have not cancelled
your internet try surfing your way back to a job.
