Tuesday, Apr 22, 2008
Going begging again
BBC: Lenders to discuss mortgage woes
Chancellor Alistair Darling and Housing Minister Caroline Flint are to meet mortgage lenders later today to urge them to do more to help struggling borrowers.
Mr Darling will ask the industry to find ways to prevent those in trouble from having their homes repossessed.
It follows his backing of a £50bn Bank of England plan to allow banks to swap mortgage debts for government bonds.
Posted by little professor @ 08:18 AM (701 views) Add Comment
18 Comments
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1. tyrellcorporation said...
This terrifies me. I think AD and GB are absolutely sh****ing themselves and are going to reach for the red button under the perspex cap. IMO they will, in the next few weeks, announce some sort of scheme whereby the Government will take some of risk of individual home-owners who are about to default (CML talks today). Effectively nationalising repossessed/defaulted housing and allowing people to stay in their homes at minimal cost. I really don't think anything is OFF the table right now and we at HPC have to be prepared for a stress-packed ride of house price falls and then audacious attempts to shore it up with our own money. It's going to be messy and expensive and could destroy the credibility of the UK economy and also the Pound. And all for the sake of soaring house prices which NEED to fall.
2. renting2 said...
Couldn't agree more TC. The banks and the government will effectively be supplying social housing with taxpayers money for those that maybe shouldn't have bought in the first place. Now, didn't we have a scheme like that once .................. ?
3. str 2007 said...
It is getting towards or maybe even gone beyond the point that this government are becoming a serious danger to the country and its economy.
BTW out with a group of friends at the weekend and was frankly surprised at how little they new about what is going on.
We might be surprised here at how little attention the General Public are paying to current economic affairs.
4. hpwatcher said...
Basically AD and GB are going to go to these bank people and say ''we have fu*ked up and we want you to help us out''.
Personally I'd tell them to p*ss off. And that's what probably will happen, in very polite and business like terminology.
5. Ijjhall said...
This is a non runner - over the weekend Steven Timms, some govt minister - in response to the CML suggestion of taking on such liabilities - was quoting as saying that while they will do everything they can as a govt for hard working families in need (usual where not nasty Tories warm words) they have to mindful of any impact on the welfare budget. Just a bit..that bill is huge already and will grow as the recession kicks in. I agree they will likely announce something with a big splash (probably just before local elections) but in classic New Labour style, read the smallprint when the headline writers have moved on. It will amount to nothing because they are skint. Sometimes even New Labour ministers have to live in the real world.
6. renting2 said...
Agreed str2007. Example, friends and workmates oblivious to the poss outcome of the fuel production strike.
7. titaniccaptain said...
@ str 2007
Your so right its like everyone is in a day dream out there right across the country.......It would of made such a great spitting image sketch though where the banks meet AD and totally bully him..........
8. japanese uncle said...
80% reduction in salary and bonus of all executives should be the imperative prerequisite.
9. hpwatcher said...
BTW out with a group of friends at the weekend and was frankly surprised at how little they new about what is going on.
These are the people who have been grabbing mortgages, throwing thousands & thousands at overpriced property, not thinking anything through.....any wonder we are in such a mess??
10. fun 4 now said...
i know a lot of people like this..truly naive?..or maybe selective readers?
11. uncle tom said...
Everyone knows the mortgage lenders are in deep trouble, yet here we have government ministers urging them to 'do more' to help home owners - as if the lenders were in a relaxed buoyant position.
Either this is an appalling attempt at political posturing, or that AD really doesn't understand the problem
- a bit of both I suspect...
12. it_is_going_with_a_bang said...
"Mr Darling wants to prevent borrowers from losing their homes"
Well Darling, maybe, just maybe, those people should never have got those loans in the first place. I know its a concept that is so difficult to come to terms with.
If they are that stupid and wanted to take risks or maybe more to the point believe Gordon Brown's BS over years then that is their problem - not mine.
I have a tax bill to pay in 2 weeks for about £5000. Maybe I should give Darling a call and tell him I can't pay it. But - maybe he should be reasonable and just wait until I have the money.
What's that I hear from the tax office? No I can't and if I don't pay I will be fined per day every day until I do, get sent red warning letters and threatened with court?
I see there is a slightly different approach being taken to collecting taxes compared to giving it away to banks.
13. str 2007 said...
@ renting2 and tc
One of the comments was - the pound hasn't dropped you get $2 to the pound now.
I guess we'll have to wait 'til holiday season before that one filters through.
14. tyrellcorporation said...
Well the $ is doomed too so that's hardly a ringing endorsement for Sterling. Sterling lost 1.5% against the Euro just yesterday!
15. bystander said...
Agreed str 2007 - Club Med is going to be a lot more expensive in the coming months - summer will be the real eye opener for millions of the general public. How many people do you think really give two sh*ts about the dollar pound exchange rate, what they care about is how much their full english breakfast will be in the Costas?? Shocking reality only a few months away.
16. tyrellcorporation said...
100,000s have presumably pre-booked from last year too - OUCH! Looks like my decision to just go to Cornwall for a week this year will prove to be a good one. Stock up at Lidl with booze and food for about £70, sorted.
17. 51ck-6-51x said...
@IGWAB - Why don't you offer AD a temporarily swap - you don't service the £5000 tax debt, but he can hang onto a couple of pairs your dirty pants for a year or three instead.
18. Taxed2much said...
Greed, holding any asset is a risk, but using my tax to support all those who've stuffed their heads in a very risky trough and gorged themselves fat - while I stupidly went for prudence.... argghhh... disbelief.
There does seem to be a general disinterest from those I meet on the street though (and friends), they've no perception of what's going on out there, but still only looking at their house 'value' and announcing that they're not concerned about 'anything'. The cynical scientists I work with though understand the situation only too well....
tyrellcorporation: If you can afford the petrol to come down to Cornwall, then hopefully you can buy my house (kinda sticks out pricewise because I'm not greedy, heading for an auction). My job's going to Singapore, I'm hoping to get a new job somewhere in the world, off this sad rock, never coming back. Don't think at this rate that there'll be anything to come back to, even if I had the slightest wish....