Tuesday, Jun 19, 2007
"Help for people in mortgage trap" - but only if you're old
BBC "News": Help for people in mortgage trap
MPs and campaigners have been successful in getting Barclays to cancel Shared Appreciation Mortgages, where the mortgagee forgoes a percentage of the future value of their property for a loan. While tantamount to usury on the part of the banks, it is interesting to contrast this with the years younger people have been complaining to MPs (the majority of which are property-rich themselves) about rising property prices and getting absolutely no response. Remember when Gordon Brown talks about cutting IHT and spending on the NHS, he's basically taxing the young and swelling the elderly's coffers.
Posted by paul @ 07:45 AM (187 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Deadspider said...
This is Barclays merely converting the house price gains they are contractually due into an interest free loan repayable when the infirm olde folks sell their next house . Barclays are locking-in their gains before a house price crash .
2. tony marshall said...
Surely if you take this to its logical conclusion, they should be compensating people who, again by their own free will, decided not to take out a mortgage at all!
I can hear the protestors now - "I went into a Barclays branch in 1999 and decided I couldn't afford a mortgage, so didnt take one out and now, having been left behind by the housing market, find myself in hardship. I demand compensation from Barclays!" In fact, I think such a person would be more deserving of compensation than someone who was offered a loan that suited their needs at the time and has benefited (at least to some extent) since then.
The world's gone mad...
3. Uncle Fargas said...
Barclays are not being charitable here. Having robbed these old people of their equity, they are now locking in the profit at the peak. The interest free loan they are offering protects them (Barclays) from any forthcoming fall in prices.