Tuesday, Apr 22, 2008
This looks like taxpayer bailout!
BBC: Homeowners to get 'mortgage help'
Homeowners will have enough support to ensure that their homes are not repossessed, the government says.
The comments came after key mortgage industry figures met Chancellor Alistair Darling and Housing Minister Caroline Flint at 11 Downing Street.
Posted by david20040_0 @ 06:28 PM (1335 views) Add Comment
34 Comments
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1. david20040_0 said...
Here is the right link:
http://news.bbc.co.uk/1/hi/business/7361137.stm
2. planning4acrash said...
Well mr David 90210, I must say that you can say you told us so! Tho I doubt that it will do much to restore confidence to first time buyers who will only come back if prices go down. Same for lenders whos new loan 2 value ratios require significant falls
3. malct said...
where will they draw the line? where ever it is the people just outside are going to be incredibly p!ssed orf.
can't see it happening without riots, even in this sad country.
4. This comment has been removed as it was found to be in breach of our Blog Policies.
5. quiet guy said...
I think you may be reading too much into this story. Consider the ending:
'The chancellor said that the government was working to ensure a fair and functioning UK mortgage market.
"I hope that lenders continue to take their responsibilities towards customers seriously," he added.
The CML will report back at the end of May with information on mortgage-holders facing difficulties.'
The chancellor hopes ... This is just a bit of spin and wishful thinking by Darling - who is desparate to appear concerned with indebted voter's problems.
6. hpwatcher said...
Homeowners will have enough support to ensure that their homes are not repossessed, the government says.
The comments came after key mortgage industry figures met Chancellor Alistair Darling and Housing Minister Caroline Flint at 11 Downing Street.
It is so typical of governments in general, and this government in particular, to think they are so 'all powerful' and can control everything to an absolute degree. Moreover, time will tell how sincere this promise is - personally I believe it to be unworkable and a pr exercise.
In any event, it will be funny just to see them try.
7. yorkshireman said...
"We want to ensure there continues to be stability and fairness in the housing market" says Ms Flint. What on earth does she mean ?
Fairness suggests or implies an equal chance for all which we all know is not the case. Rampant inflation, which is most probably the stability to which Ms Flint refers, has made a basic human need i.e. shelter unaffordable for a very large number of the electorate. A bit rich Ms Flint ?
8. Anarchyintheuk said...
If this happens, I can see this Country becoming divded between the 'Haves' and 'Have Nots' - soon after I suspect there could well be some civil unrest as people who fall in to the 'Have Not' category become ever more angry and resentful at being "shut out" of the housing market because they didn't want to commit financial suicide by taking on a massive mortgage.
9. justwatching said...
"Demand for housing from first-time buyers and young families is high and the fundamentals of the economy are sound.
Why the fook are any of you c*nts trying to interfere then????????????????????
T*ss w*nk is all I can say.
10. quiet guy said...
@yorkshireman
"What on earth does she mean ?"
Yes, it's all rubbish. We are going to be treated to a lot more of this sweet sewage until the next election is over.
11. Phil said...
malct "where will they draw the line?" "riots" wishful thinking however, 50bln to Northern rock, 20-50 bln to the Olympics 50 bln to the banks, 200 bln in aid to 3rd world, how much to help the to be reprocessed houses
300bln? The problem is unless the printing presses are working overtime UK plc does not have the money.
12. Jimmyb said...
Lets hope this is all spin, besides once inflation goes past 3% (official dreamland inflation) they will have something else to worry about.
13. Simon Scola said...
Why do i have to pay for other peoples investments?
14. uncle tom said...
This piece is vague to the point of absurdity. Darling is making loose assurances that the govt cannot possibly deliver on.
- Idiot!
15. Icarus said...
To hell with mortgage payments. I'm going to take an expensive holiday instead and get Badger to make my payments.
16. jack c said...
Where on this site did we get advance warning of this happening - come on greenbay come out come out wherever you are - you must be Mr Darling in disguise?
17. Cstanhope707 said...
Not that it will do any good but I have set up a petition on the Downing street Web Site NOHOMEBAILOUT but it has to get approval first so if it goes on the site it may take a little time. Just in case anyone wants to sign it.......
18. Rajd said...
Relax folks, this really is unworkable. Where would they draw the line? And who's going to bail out the struggling mortgage payers? Not the banks - they're trying to rebuild their capital bases - so forget about 'mortgage holidays', etc. Not the gvt - they're up to their eyeballs in debt anyway and there would be too much of an uproar if taxpayers' money was used. At best they will lay down a set of criteria that a small percentage of mortgage payers that need help will meet. At least I hope so. Otherwise, I'm off to buy a house for a squillion quid, then you guys can pay my mortgage a few months down the line when I can't afford monthly repayments :)
19. Slysmiles said...
This whole article, and the statement from the gubers is totally inane. They have nothing to say, apart of 'Lets all try to be nice please'. Not even bolting the stable door, they're still trying to tell us the horse is still inside. They've completly lost the plot. They miss the point the market hasn't functioned sanely in a decade.
20. tyrellcorporation said...
"Homeowners to get 'mortgage help'"
Outstandingly optimistic headline from the BBC too, must have been written by Rosie Millard!
21. confused76 said...
David
It is a bailout, but we have to see if it will work
By the hurry and desperation with which these measure were introduced, the government / BOE must have very damning data on the economy and the housing market they are not sharing with the public
I think this attempt to save Broon's skin will fail and cost the UK taxpayer in exess of $300bn (incl NR)
The first part of the bill has already been paid through a 18% GBP devaluation over the past 12 months
22. wiltshire said...
Whoever is currently in charge of Labour's gimmick machine, motto "No More Boom And Bust", must be working overtime at the moment.
Brown is King Canute, the economy is the tide and he really really REALLY does intend to stop it with just his will.
23. Mattormsby said...
OK this stinks.. What if this does work to maintain house prices at the current rate.. What if it slows the decline so that we have to rent for several more years.. After tax I'm getting 3-4% interest on my house deposit.. thats lower than inflation.. and it stinks..
Maybe .. if we all did something cunning.. ie.. all moved our house deposits and savings to somewhere else on the same day.. banks lend 9 times what they having in our savings.... what effect would it have.. are there enough of us..?? We could all go to dollars.. but it might just be lent back in one big loan.. we could put it all in the northern rock they would suddenly become solvent again they wouldn't lend it to anyone else.. that might do it..
I'm getting cranky with all this now.. madness for years.. and Gorden Brown is to blame....
AAAAAAARRRRRRRRRRRRRR
24. Ijjhall said...
Local elections coming up has nothing to do with this of course - and Labour MPs sudden concern over the low paid getting soaked with taxes. Roll on May 2 and we can be spared this annoying spin which is all this so called proposal is.
25. bystander said...
Watched the shadow treasury secretary on the BBC stating that all GB and AD were doing was for votes, but that they need to formalise plans to save the housing market, response: pot, kettle, black, and WHY???????
26. tyrellcorporation said...
IMHO this type of panic action currently being proposed by the desperate Labour government will pretty much bankrupt the UK economy. Why don't they do what the Spanish are doing? They have announced a massive 20bn Euro project to completely overhaul the Spanish Railway network with high speed rail track and rolling stock. This will provide an enormous boost to the economy and employment figures and shield the economy slightly from the housing/construction downturn. To my mind this is a much better way to spend billions than simply shovelling it into a black hole to try to artificially sustain a bubble. Housing is not a productive asset, it sits there doing bu**er all - the trouble is we in the UK are too attached to the idea that housing creates wealth.
I am extremely worried now for the future prosperity of our country and the prospects for me and my young family. Like Saddam setting fire to the Kuwait oil-fields, it seems GB and AD will try anything and if they don't succeed at least they've knackered it for everyone else and the incoming government.
27. Vor said...
I agree with previous posters in that I think this is some vague piece of electionering. The interesting thing is the level of panic the recent house price surveys have created, afterall the credit crisis has been going on for nearly a year now - they were quite happy to do nothing about NR for months - and suddenly we have all these measures being announced on a daily basis. In effect, they have created a self-fullfilling proficey because everytime they release one of these announcements, they create greater uncertainty and actually make things worse.
28. Sneaker said...
Ha ha ha beautiful SOCIALISM IS BACK
Just watch the financiers FLEE to the low-tax and booming countries of the world
Tony Blair ... talk about timing his exit perfectly .....
29. Tastingstars said...
tyrellcorporation - why can't we launch a massive public spending surge? Because the cupboard is bare; the government is running massive current and fiscal deficits (at the top(-ish) of the cycle) and will have problems raising even more debt to throw at large infrastructure projects. Perhaps if our beloved PM had been as prudent as he claimed and not pissed a massive amount of money up the wall, he might have had more room to manoeuvre.
30. titaniccaptain said...
I offered 80 grand less for a house today (and thats 120 grand more than its worth).................the estate agent told me that it wasnt an unreasonable offer and told me that she is glad she didnt buy 2 years ago!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Thats an estate agent.....NO BULLS##T
Right back to topic..........How exactly is the the government going to stop repossessions?????????This is going to create a loophole so big you could swallow the universe in it......its a red light to get into more debt...........utter Cr@p
31. Adarmo said...
This is insane and myopic. Remember ERM? Didn't Mr Soros make £2 Billion on the back of a government proping up the price of that other British obession - it's £.
The minute anyone attempts to guide a free market it's a disaster waiting to happen.
THEY WANT PEOPLE TO KEEP THEIR HOMES THEY SHOULD HAVE STRIPPED THE LOCAL PLANNING GODS OF THEIR POWER. BUILD MORE HOUSES, IT'S THAT SIMPLE.
An estate agent friend of mine said the property market is going down quicker than the world trade. Bad taste, perhaps, but bang on the nose!
32. Davip said...
Whatever this turns out to be, it is disgraceful in intent and likely execution -- the profits of soaring house prices are privatised in the hands of the property speculator and the banks while the losses are socialised among the taxpayers (i.e., everyons else). People who bought houses they could not afford with money they did not have are to bailed out by the public purse when it all goes wrong? It seems that if I have made a bad decision (it does not matter if I was badly advised -- I was the one who ultimately made the decision), I can put the burden onto someone else -- i.e., the lender and the state (with a knock-on effect for everyone else the lender deals with, and the economy generally).
Whatever role sub-prime lending and low interest rates had in inflating house prices, one can hardly be surprised at their collective effect in the current slowdown. We never hear about the person who can't afford to get on the housing ladder, for whom falling house prices down to a reasonable multiple of income are a good thing. Where is the help package for them? State underwriting to bring these people up to the affordability level would soon cause the pips to squeak I think.
Disgraceful and disgusting -- this is effectively a move to keep an entire generation out of home ownership -- and this at a time when our rotten socialist governers have doubled the tax burden on the poorest elements of our society. If Conservatism or Liberal Democracy will fix this appalling behaviour, bring them on..
33. Wiltshire said...
tyrellcorporation said... "Why don't they do what the Spanish are doing?" Hey, don't worry the Olympics will arrive just in time to save the British economy!!!
Funny how the current Labour government will be book-ended by the Millenium Dome and the Olympics. White elephant symbols of politicians whose egos and dreams far outstrip their abilities.
34. wiltshire said...
tyrellcorporation said... "Why don't they do what the Spanish are doing?" Hey, don't worry the Olympics will arrive just in time to save the British economy!!!
Funny how the current Labour government will be book-ended by the Millenium Dome and the Olympics. White elephant symbols of politicians whose egos and dreams far outstrip their abilities.