Friday, Nov 24, 2006
CML urges government mortgage protection..
Firstrung: The CML's pre-Budget report urges the government to increase support for mortgage borrowers
The Council of Mortgage Lenders today urges the government to increase support for mortgage borrowers who fall into payment difficulties and renew its commitment to sustainable home-ownership..
Posted by converted lurker @ 01:02 PM (157 views) Add Comment
44 Comments
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1. kpjcomp said...
Oh good, let everybody pay for those who have overstretched themselfs. Seems fair to me.!!
2. Cstanhope707 said...
Outgageous why should I pay!!!!! Ok then all you Taxpayers can pay me credit card bill!!!!!!
3. waitingfor hpc said...
as usual we pay for everybody else
4. Treadmill said...
If one were of a mendacious mindset one might easily question the motivation for the CML's proposition i.e. support for the overstretched or, possibly, government support for their own profits in the event of a downturn.
5. george monsoon said...
Do we have a choice? I don't want to pay for stupid people. They should become Un-Stupid, by having to sort their own mess out.
We are actively encouraging ingnorance to blossom and grow.... I'm sure that Tony loves this idea.
6. george monsoon said...
..er...sorry, that should have said Ignorance..
7. tyrellcorporation said...
It's the same way the IVAs effectively force us to pay for other people's indebtedness and stupidity... Modern Britain I'm afraid!
8. Kernow66 said...
If mortgage lenders wwere more responsible in their lending then we wouldn't be in a situation that requires great amounts of people needing bailing out! Why don't the CML members club together to help them out!
Here, have all this cheap money.
Oh, you can no longer pay it back.
Sorry, we'll have to repossess your house.
We think the Govt should do more to help these people.
If they do then we can keep on lending more and making more of a profit because it will be easier for a borrower to get out of trouble.
9. the bald man said...
Why should we as tax payers support mortgage payments. We are also ensuring morgage lenders do not have bad debts. No VI there.
10. Nails said...
maybe mr blair need help with his morgage!!!!!!!
11. sirgoogle said...
Sod the lot of them, it is the over stretched that have caused the bubble. Let them stew. There was nobody there to help me in the late 80s. They will never learn unless there is some pain.
12. Sam said...
isn't tony just making sure he doesn't lose his pad in london?
13. Dohousescrashinthewoods said...
Hang on a minute, why would the CML be asking this if there were no impending (or happening) house price crash?
Given that lenders were asked (as a precaution) to model a 40% drop in prices, I think there is a clear message:
The risk of it happening is judged to be an either clear, or present, danger.
14. Mr_nobody said...
1) Banks have created the bubble by giving loans ( based on affordability ie upto 5 times the salary for 50 years interest only ) and their fat cats have made big bonuses on expected profits from loans of which 40% will be bad debts.
2) Stupid people have created the bubble and now Govt wants to support it.
I guess the answer is to give criminal penalty to bank fat cats for lending ir-responsibly and then making banks collapse. Also tighten the repossesions so that stupid buyers also get punished for creating the bubble.
If this govt has any shame left, then it will not use tax payers money to bail out any of these dis-honest bankers and stupid buyers.
But hey elections could be near, when the actual collapse happens ( 2008 ) and Govt can do anything to win votes.
God save UK from such politicians, bankers and idiot buyers.
Awful shame.
15. Nohpc said...
This almost made me scream multiple swear words in anger. I hate the british policy of bailing people out of all their mess. Fair enough if somebody loses their job or becomes unwell then a little help but still people pay insurance policies for this kind of event.
If anybody should give support then the banks should be forced too!!!! I'm fed up with my pay being taxed to help the small percentage of brits who are morons!!!!
16. Nasha said...
As the economy is basically partly propped up by MEW'ing, as things start to tumble the government will be a little strapped cash to bail anyone out.
Although I agree with the sentiments above.
17. Yoman said...
I have enough, Can anyone tell me how I can take advanage of this?
I am paying 40% tax. and I can't afford to buy a house cos I was too considered.
What is the rule of claiming those? Do I just buy a house now and then kick my bose ass so I have no more job?
Will this work?
18. glorious sunshine said...
Or looking at it another way...Sod the lot of them who missed the boat and cant afford to buy. Good luck to all those genuine people trying to make a start in life.
You sound bitter and twisted and want others to suffer for YOUR stupidity.
Psst...by the way...there will be no crash...keep it to yourself though...it can be our little secret. :-)
19. uncle chris said...
For goodness sake - if the CML had been responsible with their borrowing then this wouldn't be an issue. They only have themselves to blame if they (the banks) go bust - I just hope it doesn't impact on those of us who have been sensible during all the madness. However, I'm confident that the government won't support the mortgage industry because frankly there isn't any money left and there are far more deserving causes ... like say, the NHS.
20. glorious sunshine said...
Your having a laugh aren't you? The banks go bust??? Never will that happen! The only ones who will suffer are genuine hard working responsible people trying to get on - thats whatever way housing or economy goes.
Of course the majority of those posting here want others to suffer so they get a free meal, ride or home. What a bunch of to**ers! Why not work hard for it like the majority in this country (well at least present) have for generations.
21. magnifico said...
I would make a distinction between stupid people and desperate adults who had no other option but to borrow too much to get on the property ladder.
Don't tell me that we should subsidise paper millionaires who MEWed their way to pay for a life of luxury.
22. Cheekie Charlie said...
Glorious sunshine - Have you read the headlines today from the states? The party will be over soon and then the hangover will begin. ENJOY BEING SOBER.
23. bidin'matime said...
It's those who over-borrowed to over-pay who caused the present problem. If they are the ones who now suffer as it goes pop, then it sounds fair enough to me.
24. Bryan said...
Glorious Sunshine
So these so-called hard working "responsible" people should think- "I'll pay over twice as much as the house is really worth, with a self cert mortgage, and bollox, if I loose my job or my partner looses their job and we can't afford the mortgage payments the government will bail us out with other peoples money"
It's not just irresponsible lenders, it's irresponsible borrowers who have got the housing market in the state it is in.
25. Rimmer said...
I have a house, its not as big as some peoples i know but bigger that others. My main concern is for my children and the world has to wise up for them to have any future, lets be truthful Tony and Gorden have let the good times roll and now its time to pay, maybe if Tony had taking more interest in the Uk economy rather than leaving it to Gordon we wouldnt have to face what i fear we now do, ecomomies are driven by the world, prudence prevails and always will, did we honestly thing 2.5% interest rates were here to stay?
26. glorious sunshine said...
Well everyone,
I can only speak from experience. I have borrowed a 'responsible' lump of money and put it with my 'deposit' which I worked harder than most on this site (appologies for those who have done more for less - a salute and acknowledge you). Because interest rates are so, so low I am paying my borrowed lump off at double speed. So if infact they do go up a bit not worries! I just extend my loan a little but it will still be less than the text book 25 years.
It all comes down to being a have or have not and how much your prepared to sacrifice to go forward. Take the average wage of say 25K, a couple = 50K x 4 = 200K before deposit. Quite frankly this is a piss easy repayment even if the rate goes to 7 or 8% plus so I dont see where you lot are coming from with a crash???
As I have said before they will not crash but we will not see the staggering growth of recent years. Just stagnation or 3-4% growth while wages catch up. Who fancies renting in the meantime??? Not me...anyone want to rent my home while I go surfing and have a blast?
27. geed said...
Glorious Sunshine; these posts are inane and boring. I now realise I much preferred your sing along lyrical posts as even though these were pointless, they appeared to be more relevant to the dribble you posted above. You appear to be getting a little anxious of late?
You borrow money, you cant pay me back, I break your legs. Its a beautifully elegant economic model.
Oh I do believe overcast and drizzle are available as user names, should you wish to change in future.
28. harold said...
"As I have said before they will not crash..." glorious sunshine.
And the educated reasoning behind your earth-shattering insight is (apart from wishful thinking)?
Actually I don't mind people with alternative views visiting this site, but I do object to people labelling bears as "bitter and twisted". There is nothing bitter and twisted about genuinely lamenting the appalling mismanagement of the economy by NuLabour, mismanagement that has clearly created - to all but the blindly optimistic - a potentially dangerous situation in which people have over-extended their borrowing. Over-borrowing is not being "prepared to sacrifice to go forward", it's just being economically naive. I wish you luck because if you bought in the last 3 years you are going to need it, or a deep pocket.
29. Little Ol' Wine Drinker Me said...
Hey! Gloriarse Bumshine(Slightly Childish I know, but you'd understand),
Easy to maintain a mortgage of £200K when you have no commitments in life yet.
"Glorious Sunshine" would you like to fill us in on the details of your "Hard Work" so we all know how to be as clever and hard working as you.
Seems to me the only "HARD WORK" you know about, is sitting there playing with yourself whilst typing an utter load of drivel. Obviously a single person of 25 going on 12, and probably had a deposit given to you by Mummy and Daddy. Rent your house? I'm sure your find someone to look after for you! Here's hoping that you fall off your surfer dude board, and get it permantly wedged in your mouth.
Regards,
Have a drink on me.
30. uncle chris said...
Glorious Sunshine (sounds like a head-in-the-sand choice if ever I heard one),
I realise you enjoy baiting the 'cautious' on this blog, but I think you are genuinely misguided if you believe that maintaining a £200k mortgage on £50k joint is a doddle (excuse me for using less colourful language). If this is your situation, then I really suggest you sit down and look carefully (and honestly) at all of your expenses and work out how much you have to spend at the end on the day without getting deeper in debt - well every day for the next 25/40/50 years that is. As for renting ... even though we could afford to buy that £200k house for cash, renting is exactly what we will be doing - although I realise that in paying £400 for a 1200 sq foot barn conversion, we have a pretty good deal. Actually, the interest from our savings pays for our rent, allowing us to save all of our wages. I'm afraid, my sunshine comes from renting. My wife is currently building a baby, and it is bliss that she can take 6 months extra unpaid maternity if she wants. How many mortgaged-to-the-hilt couples can say that. Enjoy your lifetime of maintaining that large mortgage :-)
31. iguana said...
The CML have help at hand for the overstretched, mortgage lending has reached irresponsible levels, the people responsible for the ridiculous lending were judged to have performed spectacularly well and so were given big bonuses, now that their efforts can be seen as having been spectacularly bad as the loans go bad simply reclaim the bonuses (they know where they are!) and then pay these sums to the poor overstretched. simple!
32. paul said...
Glorious Sunshine.
Please go surfing. Don't go too deep though because with a ball and chain that size, you ... oh never mind.
33. Swiftnick said...
So what if the CLM are urging the govt for financial help, sure as eggs is eggs they won't get any, I myself am urging G Brown to support single midle class men so often overlooked by politicians
34. Hoyo said...
There's no chance of Glorious Sunshine,going too deep as suspect he is a longboarding guru type & the chance of him "getting out back" is probably slim to none!! I don't think flapping around on the inside qualifies as surfing. Pintail had him summed up quite nicely the other day.
35. Bin There said...
It is no surprise to me that when people get into financial difficulties cos of over borrowing on their properties, all the holier than though unsympatheitic people crawl out of the woodwork and criticise!! How are people supposed to judge what is going to happen with the property market? They borrow because they don't know any different and because they are being advised by so called people in the know. Basically they are victims of an uncertain investment which shouldn't be so, as we are talking about people needing a roof over their heads in which to relax, be comfortable and secure enough to raise a family. It's the system that is wrong not the poor victims who have to pay the price so let's have a little more support for the victims whose timing is probably not as lucky as the criticiser's!
36. paul said...
Bin There,
Read the comments again. No-one is criticising new FTBs for making a decision in good faith, based on the information to hand. We're blaming lazy fiscal management by the BofE, laissez-faire government by bought-in Labour and corrupted media parading their wealthy advertisers' interests as news.
Housing has become the elephant in the living room. Everyone from the Bank of England to the Prime Minister is tippy-toeing around it desperately pretending it's not as big an issue as its size indicates. But our economy is now so ossified towards property that if you whip away this last prop there will be nothing left to hold the economy up. So the government is busying itself painting over the cracks.
It's not going away though, and the more they ignore it, the bigger a problem it will get.
37. Pintail said...
thanks hoyo
glorious sunshine - I dream of the days when I am on an average salary where I live there is no such thing, so not much chance of buying a house, assume the poo stance whitewater riding all the way, lets go
38. nearly30 said...
Gloriarse Bumshine (sorry for pinching your gag Little Ol' Wine Drinker Me)
£200,000 mortgage - piss easy - OK let's see!!
Repayments = £1,430 a month @ 7%
Take home = approx. £3,000 p.m. (dual income on £25K each)
Average Costs (gleaned from various reports out recently - I might add)
Council Tax = £100 p.m.
Utilities Bill = £100 p.m.
Transport Costs (Motoring) = £185 p.m.
Phone/Internet/TV/Mobile = £100 p.m.
Food = £240 p.m.
Total = £2,155
Total = £845 or £422.5 per person
So interest rates hit 12% - that wipes out any excess.
Last time we had 12% IR was March 22nd 1991 - OK see your point!!!
But wait a minute - there must be loads of things I missed off my list of outgoings??
Oh yeah - what about the kids?
Thats the equivalent of £715 p.m. (just for 1) - sorry for p*ssing on your chips!!!!
It's called life!!!! It's called commitments - not everyone is a batchelor city-boy getting massive bonuses!!!
39. nearly30 said...
Sorry - got carried away - the Total = £845 or £422.5 per person sould read Total left over = £845 or £422.5 per person.
Hey - when I get annoyed!!!
40. uncle chris said...
Not forgetting ...
(1) Student debt (likely if recent FTB in well paid job) = approx. £150 each (based of average debt).
(2) Additional contributions to work-based pension = approx. £120 each (based on my contributions).
(3) Entertainment = £50 each per month (probably an underestimate).
(4) Household maintenance .... suggested outlay is approx 1% per annum = 200,000 x 0.01 / 12 = £170 per month.
(5) How about Christmas/Birthdays/Easter = approx. £80 per month
(6) Holidays (seeing as life is so easy) = £100 per month on average
Let's do some additions .... oooh, that comes to an additional £1000 per month for two people. Hmmmm ... nearly30's figures suggest there was only £845 to play with. My goodness, we could forget the holidays, entertaining, and maybe Christmas .... now we are cooking. Oh well, only another 25 years to go. Ahhh - what a wonderful life for the recent FTB.
Starting to get the picture Glorious ...... suggest you sit down and work out some figures.
41. Hoyo said...
Has he allowed for the cost of peroxide!!!!!!!!!????
42. nearly30 said...
uncle chris - cheers for the additions.
Hopefully Gloriarse Bumshine will read this - what a d*ck!!
As for anyone on else who is a FTB an not a graduate - what hope have they?
My philosophy is that houses are homes - not a commodity/income - and where they are used as commodities/income - tax as appropriate.
I would rather have people invest in business that employs people and makes things than bricks and mortar (that only really gives money to the banks) - buy-to-launderers and property investors try and rip off as many people as possible - without due comeback.
I think it is disgusting what this govt. is presiding over - fake wealth, fake aspirations etc. etc..
People need a home - it is the centre of family and community cohesion upon which we build a more practical and harmonius society.
Yeah - a bit hippy - but I grew up in a village (ave. house now £300,000 / 1-bed terrace = £180,000) - i loved my village - went to primary school - local secondary school - all my friends / youth have left - now only old people and the rich - my parents say the soul has been ripped out. So much so that - local sports teams / youth clubs / schools / pubs / shops / services etc. have less and less people using them - a downward spiral
Gloriarse Bumshine - have a paradigm shift why don't ya!!!
43. The Capitalist said...
Glorio Sushi (sorry in a rush but I rather like it)
Are you sure you're not playing one of those VR games where you're a big shot property developer making £££££££s ? Like er...WAKE UP DUDE!
44. Mjchum said...
Nearly30,
"My philosophy is that houses are homes - not a commodity/income - and where they are used as . . . . tax as appropriate"
Correct - Under Nu Liebor - Houses = Commodities = Yeilds, more power to banks, more control over people, all nasty stuff . . .
Under my philosophy - Houses = Homes = Families = Communities = Society = Stability
You are probably in the same boat as me. I want a family in Britain (although I thought I did?), look at the cost and even though earning lots, don't see this going on for long, remember the last crash, know people in their late thirties/forties still paying for houses/families they lost long ago, remember the bailiff's/parents losing home, divorce, on the street at 16.
So I started a family in Thailand!!!! It's not that hard, but it has been very rewarding and strangely a loving stable relationship!!!
House prices collapsing there at the moment. Should get a 4 bed (3000 sq ft!!!) with large pool for around £40k in a years time.
Making this my last contract in UK - leaving in 18 months.
I recommend you do the same. Once this economic miricle unfolds, don't really see a future in the UK. You'll be paying for everyone else, paying for wars you don't want, pensions you'll never receive, your paying (already) for drunks and junkies and illegals and god knows what to live in houses you'll never be able to afford and why can't you afford them, because your paying for someone else to live in them!!!
Get out now son, you won't regret it!!!