Gordon Brown Offers mortgage holiday

[Blinglovin]

www.ft.com/cms/s/0/39ab3296-c143-11dd-831e-000077b07658.html?nclick_check=1

'Renters have always had the housing benefit net so that if they suddenly have no income they don't lose their home '

Except it's not their home. It's someone else's.

After their short-assured tenancy ends, they can lose their 'home' anytime the landlord decides to give them their 2 months notice.

They are not gaining any sort of equity and have no asset.

Depending on the amount of savings they have, they also may not qualify for housing benefit - it seems fair that mortgage-holders who also have savings should also have to use them to pay their mortgage before getting help from the government.

"If you are renting at least you have the option of handing in your notice and renting somewhere cheaper I guess."

No

Because you are still looking at forking out over a grand just for the deposit and first month's rent. And that's a massive underestimate

Our tiny 2 bed house is cheap for our area (750pcm)

We would have to live in a one bed flat, which is the only cheaper option here (and that ain't much cheaper tbh)

Ideal with 2 kids.

Christiana, if you lost your job and had no savings then you would get local housing allowance which is calculated at an average local market rent for the house that you need. So if you are a single person living in a 3bed house then you would only get the lha for a one bed house. But typically the lha will cover your full rental costs. you would also be entitled to council tax benefit too (as are people who do own their own homes).

And, if you are in a private rent, who is to say that the landlord has not been defaulting on their mortgage?

HB won't pay a deposit for you to move house if you are currently living somewhere they deem to be too expensive

'We would have to live in a one bed flat, which is the only cheaper option here (and that ain't much cheaper tbh)

Ideal with 2 kids. '

Also, in many cases, not possible.

Many landlords have to abide by rules from their own mortgage lenders and from the council about over-crowding.

And also some lenders/insurers will not allow a landlord to rent to a person in receipt of housing benefit/DSS.

So not a question of just 'finding somewhere cheaper' to rent.

Well yes Christmas Cake, I imagine there's an awful lot of that going on already.

Well, if private renting is so great, then why not flog your house and join the ranks then?

It's such a secure and wonderful situation to have such a 'safety net' if we lose our jobs.

We're so lucky, us private renters who can't afford to buy.

But you will have your current deposit coming back to you.

And isn't that the same as someone who is repossessed? So you both end up looking for discretionary housing payments?

Personally, this today has made me feel a bit uncomfortable.

Thje UK is going to be up shit creek in 2 years time at this rate.

Buy now pay later is what's got us in this mess in the first place, and the govt are doing just that at the mo AFAICS

Have you ever got your deposit back straight away from a landlord? I never have. In most cases it will take around 6 weeks to get it back.

'But you will have your current deposit coming back to you.'

LOL!

Yeah, ever tried to chase up a private landlord for the deposit they niggled you out of?

I always withhold the last months rent because you don't stand a chance otherwise.
Although aren't all deposits meant to be held by a registered scheme now ? Might be worth checking to see if yours is.

I do, too, Katie.

I've been screwed out of my deposit more times than I can count.

Yes, but I am sure that the landlord has a reasonable amount of time to assess damage etc after you move out. This doesn't help you if you need to downsize to somewhere else.

Fuck it, I am going to live in a yurt

We're looking at caravans, Shiek.

For real. No joke.

I wasn't saying there is anything marvellous about renting.

I was saying that this is going some way to giving homeowners the same sort of help that renters have

No-one who suddenly loses all their income is going to be able to pay rent OR a mortgage if they have no savings. So if a mortgage holder has house repossessed then they end up renting anyway and claiming housing benefit for that. And putting more strain on the private rental market in all probability, hiking up rents as there would be less availability if suddenly for eg 50,000 families needed to rent

I'm not laughing mate.

I don;t think we are far away from it either, especially as the company DP and I work for are making major losses which means major redundancies

and it's not buy now pay later is it?

It's keep your house and a roof over your head. Reposessions benefit nobody

You clean the place, repair anything you've broken, photograph everything, do not pay the last 4 weeks rent and be present whilst the agent inspects the house. Then await the phone call to tell you that you've trashed the joint and owe x, y and z.
Tell the agent you took the photo's and they tell the landlord to f* off.

I think whatever boat you are in if you are low to middle income, you are fucked.

Even high earners.

My mate had a v well paid job, and he has recently been laid off.

Nobody's safe at the mo

[doom]

Under the Tenancy Deposit Scheme you get your deposit back within 10 days - at least the amount that isn't disputed. Doesn't apply to Scotland though as far as I know.

quite

doesn't matter if you own with mortgage or rent

Reposession would benefit plenty of people actually.

'I was saying that this is going some way to giving homeowners the same sort of help that renters have'

But their home is an asset they are gaining equity in. That's the difference between them and renters.

Therefore, why should ALL taxpayers, renters and people who bought way less house than they could afford or who have paid off their mortgage, subsidise others to keep gaining equity in their asset? No one helped them get an asset worth so much, but now they're being expected to provide it for others?

If they want the same 'protection' renters get, then let them sell their house and rent.