Mortgage and remortgage deals hard to come by in new financial world

In this housing market, gaining a mortgage or agreeing a remortgage deal continues to be problematical during a credit crisis where unprecedented events have rocked the financial system. As the UK government re-capitalises British banks in a bid to kick-start money lending throughout the market, mortgage deals are still hard to come by for first-time buyers and re-mortgages are also difficult to arrange for people already on the housing ladder.

UK house sales have fallen to less than one a week (as reported in The Times Online: "http://business.timesonline.co.uk/tol/business/economics/article4940149.ece) as first-time buyers struggle to find deals that match their income and savings. Total numbers of new mortgages, remortgages and new loans to homeowners have hit a 30 year low. And whilst analysts have welcomed the governments part nationalisation of the banking industry, they also believe that it will be a while before the benefits are felt by the stricken housing market.

A secondary consequence of the current climate is the potential for redundancies and the possibility of existing homeowners not being able to make their mortgage payments. As up to 60,000 jobs are predicted to be at risk in the City of London banking sector alone, unemployment mortgage payment protection is a live issue at the moment, considering the fallout if individuals are not able to make their mortgage payments after a sudden loss of income. Although hopes are that the current losses in certain sectors, like Banking and Construction, do not extend to other employment sectors.