Struggling howeowners in negative equity will be unable to benefit from the Government's mortgage rescue package, according to The Times.
The Government's £200m mortgage rescue package will do nothing to ease the suffering of struggling homeowners in negative equity, as they will be barred from the scheme even if they desperately need to raise cash.
Timesonline has learnt that homeowners struggling to pay their mortgage will be prevented from benefiting from the rescue package, announced on Monday, if their property is worth less than the value of their mortgage.
That includes thousands of customers who took out a Together mortgage with Northern Rock, the nationalised bank, which offered cash-strapped first-time buyers loans worth up to 125 per cent of the property value.
Spending is down on cars, pensions and savings as cheaper food brands see market share grow, The Guardian reports.
Evidence was mounting yesterday of consumers making deep cuts in spending, amid fears that Britain is facing the worst economic conditions in decades.
A flurry of fresh data showed the return to austerity, after years of debt-fuelled spending. The mood among homeowners soured further when the Halifax reported a 12.7% decline in property prices during August compared with the same month a year ago. It was the biggest fall the Halifax has recorded and there was little relief in sight for the housing market as the Bank of England again left interest rates unchanged.
Among the fresh evidence of belt-tightening yesterday:
- New car sales fell to their lowest level last month since 1966.
- The number of people putting money into personal pensions fell by 1 million over the last year to 7 million.
- Household savings are at their lowest since the 1950s.
- Sainsbury's said sales of own-brand goods are increasing at 6%, twice the rate of more expensive branded products.
- Whitbread reported booming sales at its budget hotel chain Premier Inn.
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