Wednesday, Dec 03, 2008
'Clever scheme'.How much is that gonna cost
BBC News: Brown unveils mortgage help plan
No wonder the banks quickly signed for it.
Posted by fjcruiser @ 07:10 PM (1690 views) Add Comment
21 Comments
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1. malct said...
we don't need more lendong, we need less lending
2. malct said...
sorry that was less lendong
just in case someone picked it up wring
3. enuii said...
Like this bit; 'the scheme could help a two-income family where one earner has become redundant' and/or 'a homeowner who has suffered a significant loss of overtime'; which just goes to prove how people have overstretched themselves on overpriced property.
4. plato said...
Suppose on the surface it takes a bit of pressure off...........but..........Is this genuine help?
Deferred !...............Notice once again this is to ensure banks get their interest.Whatever the plight,or just whatever!
It is a 'clever scheme' because; what are the banks going to do with all those properties anyway?
.............and where are they going to put all those displaced people?
Lucky we have 'responsible' banks then!
5. planning4acrash said...
No wonder the banks signed for it? But wait a second, isn't the government the banks, the government?!
6. quiet guy said...
How tawdry. A blatant short-term bung for speculator homeowner wannabes who overextended themselves. Nulab are undermining personal responsibility. The worst thing is, as plato says, after the election, the grace period will run expire and the debt will be worse that ever. Another apsect of this I don't like is that it brings even more people into relying upon state benefits and penalise independent people through higher taxes.
7. uncle tom said...
I've just tried to crunch the numbers on this, although not all the small print is yet in the public domain..
Conclusion;
- If it is to dramatically reduce the number of repos, it will cost a fortune - probably £5bn + (and the most of the homes will eventually end up being repo'd anyway)
- If it is only to benefit 9,000 familes (as quoted..) then it is a cynical exercise aimed at keeping the annual number of repos below the peak in the early 90's when the Tories were in power (at least until after the next election..) - and is based on CML forecasts that are rose tinted in the extreme.
- It won't work, as the BTL sector is heading into wholesale repo, and the Govt. wouldn't dare bail them out, because everyone hates them.
- If the Govt. tries to massage the numbers by excluding BTL, they will have to keep revising the scheme, as the number of non-BTL repos looks otherwise set to easily clear 100k p.a.
8. braindeed said...
I've just bought a top-hat.....cost me 10/6.....everything is coming up roses
9. alan said...
"The scheme will cover mortgages worth up to £400,000, the BBC understands".......
......Oh, just the ordinary man in the street, then.
Greenbay gambled on the government bailing out the BTL brigade. Seems he was right about that one!
As I've paid my mortgage, I'll be paying through my taxation for all those defaulting mortgages.
10. luckyjim said...
So the bank delays repo for two use without risking any loss in interest.
Surely the greater risk is the fact that the asset will be worth much less after a further two years.
Vince Cable hinted that the scheme might not be available to those in negative equity. He may well be correct.
11. plato said...
uncle tom said : "It won't work, as the BTL sector is heading into wholesale repo, and the Govt. wouldn't dare bail them out, because everyone hates them."
I imagine that many of our illustrious MPs and their 'contacts' are in the BTL trade. Hope this is made transparent before any of these claims are met. We wouldn't want a conflict of interest! 'Responsible' does have its proper uses as well.
12. speculatorone said...
Don't worry Gordon knows what he's doing because by the time all this s$£t hit the fan he won't be PM and Cameron will have to pick up the pieces.
If I didn't know better I would say GB is doing all this on purpose because nobody could be this amateurish, careless and inadequate at their job could they?
Anyway we had better watch what we say on this site, he might have us arrested and charged with treason...
13. alan said...
My MP has a couple of BTLs where the interest goes on MPs expenses. he's sure to vote for it.
As Osborne says, "if Brown is involved, check the details".
I would like to know if secondary lenders will sign up to this. They seem to be the ones pushing for many of the repossessions.
14. Potnoddle said...
doomed we're all doomed; still so the rest of the world.
15. growler said...
Brown needs voters. With the amount of distressed homeowners about to rocket, he'll create a lot of people indebted to the Government in more ways than one. For every person "rescued" a load of mates will hear how GBs policy has "helped" them. Of course, as LuckyJim says, they'd be wiser offloading a depreciating asset. But it helps them dream. Smart move Gordon - you have to hand it to him.
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17. Pete said...
Why are so many people unable to cover their mortgage for at least one month... how many have absolutely no savings at all.
18. gardeniadotnet said...
Love this disingenuous comment on Peston's blog:
At 6:22pm on 03 Dec 2008, B wrote:
I am confused about it all but am sure it is a good thing, after all, those in charge have clever advisors from oxbridge and I am just a person surfing the web.
19. rumble said...
speculator: nothing is being done for economic reasons, it's all politics. the two should be completely isolated from each other.
20. gardeniadotnet said...
17. rumble said... speculator: nothing is being done for economic reasons, it's all politics. the two should be completely isolated from each other.
I agree.
I think Obama now understands this, but unfortunately it might take an election for it to be recognised over here.
21. waiting patiently said...
Snap election? Brown out of work and worrying about how he will pay the mortgage?