WIth interest rates at just .5% and many mortgages available at at around just 4% it is unlikely that we will see vast mortgage payment problems even if house prices continue to fall.

Gordon Brown is trying to force a maximum loan to value rate on mortgages of 90%. This is just to be safe as he wants to reduce the probability of homeowners going under.

The good news is the total number of homeowner loans has risen 7% in the past month, with many banks requirung just a 15% deposit now. This is a good sign for the Uk housing market and although prices appear to be falling. The rate of change has definitely decreased over the past few months.

With unemployment still on the rise people are now more wary of taking out large fast cash home loans and fast cash personal loans as they are aware their job is less certain. This is why consumer spending is low at the moment and will remain low for some time.