Wednesday, Dec 03, 2008
The Govt's Mortgage Support Scheme; the full details
Firstrung: The Homeowner Mortgage Support Scheme - the official government press release
The Government today announced a new scheme to help people who suffer a temporary loss of income stay in their home. The new Homeowner Mortgage Support Scheme will enable households that experience a significant and temporary loss of income as a result of the economic downturn to defer a proportion of the interest payments on their mortgage for up to two years. The Government will guarantee the deferred interests payments in return for banks' participation in the scheme...
Posted by converted lurker @ 09:44 PM (893 views) Add Comment
13 Comments
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1. Prof said...
Let`s stop messing around and just cancel all mortgage debt. Why not just take all the money from people who have savings and give it to those who have the most debt ?
Oh, they`re doing that already, but in a less obvious way.
Clever Mr. Brown.
2. sold out said...
from the sky news website
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"A total of eight lenders have signed up to the scheme, which was unveiled by Gordon Brown during the debate on the Queen's speech.
Lenders have told Sky News they broadly welcome the announcement - but admitted they had yet to see the details of the plan.
It is believed they were first informed of the repossession relief scheme on Tuesday afternoon.
Nationwide said:"While we broadly support this initiative we are still waiting for more details from the Government before we can make any further comment."
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so the banks have signed up but they don't know the detail?
3. Steve said...
'Enhancing the Mortgage Rescue scheme to cover vulnerable families at risk of repossession because of additional loans secured on their home'
I'm staying in bed 'till 11:00 in the morning, then I'm going out to spend, spend, spend.
4. techieman said...
...and when (after perhaps a short term stabilisation) this doesnt work, what happens then? Is he gonna plunder the tax take even further, or propel the PSBR into the straosphere.?
5. paul said...
By the same token, are people with savings who are renting and then made redundant allowed to have their savings excluded from means-tested benefits?
Didn't think so. This is criminal.
6. inbreda said...
spot on Paul
7. little professor said...
@ sold out -
There's this latest update from Pestowire:
May be just another PR show that will have negligible actual effect.
8. gardeniadotnet said...
>May be just another PR show that will have negligible actual effect
Unfortunately for Gordon the world is watching so it has to work.
9. james stephenson said...
If people lose their jobs then it doesn't matter whether they get to have an interest holiday. For most people, interest only will still be unaffordable.
Nothing this government has chucked at this problem has helped - nothing is dealing with the issue of having borrowed to the hilt - except actually having the recession - which is unfortunately needed.
Brown got us into this mess - why do people think he can get us out. He didn't see this whole mess coming, when anyone with a decent understanding of Austrian Economics could see it (Peter Schiff etc.).
10. wiltshire said...
Why two years holiday? Is that Labour admitting the recession isn't going to be short and sharp.
Anyone who needs to use this facility will just find they have a bigger mortgage at the end of two years than they had originally. Now they will need to pray that they've managed to get back into employment with adequate pay AND that prices haven't continued to slip during those two years. Should they not get lucky, they'll owe more to the bank and their asset will have depreciated further thus they're going to be further in the mire than they were.
11. drewster said...
"a bank has estimated for the Government that the scheme will help perhaps 9,000 families"
Wow 9,000 families. That'll swing the next election. Not.
12. voiceofreason said...
Being Devil's advocate here:
2 years will take us past the next election.
2 years will allow the mega-inflation in the pipeline to erode the debt. At least for those on index linked benefits anyway.
13. Greenbay said...
Voice of reason,
Absolutely right, debt erosion..
For some reason on this site alot of people are and some think they are astute in all areas of the economy from past cycles etc, unfortunately most do not understand the housing market as a seperate entity and it benefits, however many moons ago i had a similar mind set before realising around 20 years ago, housing is the golden goose. Rightly or wrongly and putting ethics to one side property investment is an incredible incredible investment which is above the comprhension of many on this site, it astoounds me in all honesty the stubborness or perhaps nievety of many people here, and by nature the site attracts negative minded people...
I have seen many cycles of boom/bust scenarios all of which have seen property massively outperform any investment, today is no different, when capital appreciation declines rental and cash flow increases and remember a loss is only occured when/if you sell the property which i have never done, my cashflow positivity is now tremendous and you people here are missing out big time by sitting on the side lines moaning,feeling hard done by, blaming everyone else for your mental laziness, blaming the government for its attempts in helping the economy etc.
wake up and do something with your lives or continue to be a disgruntled employee forever.
Greenbay