Gordon Brown Offers mortgage holiday

[Blinglovin]

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

Yeah the repo man

Well they aren't gaining equity at the moment too be fair

Repossessions do indeed benefit some.

Not nice to hear, but it's a cycle.

Someone gets repossessed, often enough, a person pays cash for it at auction and puts it back into the rental market.

Sad, but it's what my dad does as a side investment.

Apparantly this taxpayers' guarantee also covers "MORTGAGES ON SECOND HOMES"

So, those who can't afford to live in a home of their own are now to provide an extra subsidy to the greedy people who have more than one. HoHoHo

No they don't, but where is all this money going to come from?

Like all of the money that's bumping up tax credits/child benefit (which I am NOT complaing about, btw) and the money that's being used to bail out banks etc etc etc etc

It's like me saying "I can' pay my loan this month, but I'll just borrow more to cover it. Never mind that the repayments will be twice as much nextr month - I'll cross that bridge when I come to it" But on a much bigger scale

Anyway, I am bowing out of this discussion now, because I know nowt about the economy, except that it's shit.

Try "an asset that they are losing equity in"

What about those in neg equity?

Anyone who has refused to borrow more than 3 times their salary for a shoe box would benefit, people who have saved, been responsible.

this money is going to come from the homeowners, surely?

The interest will accrue and interest on top of that. They will still have to pay it off

It doesn't matter if you're in negative equity if you're not using your home as a money-making machine.

So if you repayments are over-stretching you right now, what the hell will they do when you start having to pay more in a couple of years.

Nobody has a crystal ball - and not all jobs have pay rises every year

I'd sell my body, but folk don;t pay for saggy boobs/belly

My goodness, "mortgages on second homes". Some people have been greedy fuckers for the past 10 years and any help given should be only for the home they actually live in.

Yes, I am fully aware of that
most homeowners aren't and it makes no diff how expensive the house is it is all on paper

I am confused about your position on this
You don't like renting but you resent people who have bought houses and think they are ripping you off in some way. I don't really understand.

(it's me cd btw I changed for another thread and forgot to change back)

That's my point guitar, this will not help homeowners because if the economy hasn't turned around in 2 years they will be reposessed anyway, only instead of claiming housing benefit and renting for 2 years they will be facing a 2 year bill for the interest as well.
No way will this all be over in 2 years, no way.

I totally agree second homes should not be included in this that is crazy

guitarheroine - the UK taxpayer is guaranteeing payments up to a Billion pounds. That means a lot of taxpayers money that could be used to provide social housing is instead being used to prop up the property market.

what do you mean guaranteeing?
I must read the article I guess durr

oh I need to register

So would it be fairer if they got rid of this and housing benefit? Then everyone in the same boat. Fend for yourself approach. Not very nice really

I don;t resent anyone who has bought their home.

I do resent the whole "If you don;t own property, then you haven't made it" mindset which we have lived through for the last x years in which I have seen friends of mine almost bankrupt themselves in order to buy a crappy flat which they pay through the nose for, because they felt they "had" to.

I am talking bollocks

yes but if it is reposessed they won't owe the money, it will all be TIC in the repo.

What diff between the interest on the mortgage and paying rent? Usually it is cheaper to pay the interest than rent IIRC

no you aren't
but if people talk like t hat they are twats

It is pathetic
They dont' own it, the bank does. For many years

Good post, Katie. It does feel like it's just delaying the inevitable

God, CD, I have had years of it, I tells ya

"You should own your own place at your age"

"Renting is dead money, you know"

"You are giving your money away"

"Yo8u should have bought a house first then had children" (No, if we'd waited, I would have been a shrivelled old prune and DP would have needed assistance from a lollipop stick)

etc etc etc etc

As people keep pointing out - if you are in arrears now there is no good reason to believe that you will be able to pay more in two years - especially considering house prices are falling and unemployment is rising. That is why banks make the commercial decision to reposess. As things stand they will generally offer a payment holiday if it is in their own best interest. Now it seems that taxpayers' money will be used to guarantee the bank won't lose money, even on second homes.

I'd stick my head in the oven, but it's electric.

Of course you still owe the money if you are reposessed, the banks can chase you for 12 years to cover the difference between the loan and the price they sell the house for.
Many many jobs can't be performed by bankrupts which is the only way to get rid of the debt so this air brained scheme will mean for people who could have got out when they lost their jobs will be saddled with huge debts for the rest of their lives.
The bigger the bubble the louder the pop.