The report, entitled ‘Another UK recession?’, looked at past and present indicators of recession and found that job losses would mean that many people will struggle to pay their mortgage unless they have payment protection insurance.
Tony Claytor, new product director at Pinnacle, said: "The UK economy is moving into recession. Job losses are no longer a prediction, they are a fact, and they are happening now. Redundancy is not just an issue for airline staff, it is occurring right across UK industry and commerce; the engineering sector is predicting 300,000 job losses in the next 15 months alone."
"Unfortunately, borrowers who think that Social Services will pay their mortgage in the event of unemployment are in for a shock – most people will not receive a penny towards their repayments for at least nine months. And with the average mortgage standing at around £500 per month, hard-won savings may soon disappear."
