One third of homeowners ‘at risk'

One in three property owners would stay afloat financially for less than three months if they lost their job.

According to research carried out by Property Portfolio Rescue (PPR), 63% of homeowners say they are not worried about losing their home. However, at the same time more than 50% say they regard low interest rates as the cornerstone of their personal financial security plan.

PPR points out that huge public spending cuts are expected to lead to a sharp increase in unemployment in the future, which, if combined with rising interest rates, could threaten the security of many mortgage borrowers.

Its survey highlights the fact that younger people are particularly at risk, with over 60% of respondents under 30 having faced difficulties with their personal finances in the past year already, ranging from overdraft and credit card payments to pensions and savings.

Nick Hopkinson, director of PPR, said:

“These results not only reveal how vulnerable homeowners of all ages are to falling into financial difficulties if they are made redundant, but they also indicate a worrying apathy towards taking the necessary measures to safeguard themselves against this.

“It appears that people have not heeded the clear warnings from a recession that has already plunged 2.5m into unemployment, and the situation is only set to worsen as the new coalition government embarks on its deficit cutting offensive.

"It can take just a short period of hardship for people to lose their home. I would advise all homeowners who don’t have a plan to think hard and fast about their finances and how they will keep their house if the worst happens and they lose their job in 'austerity Britain'."