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Mortgage Payment Releif

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I had a vague idea this was happing but I was very surprised to hear a family member has taken advantage of it.

They moved house over a year ago to a bigger rented place and put their own house up for sale. Paying rent and mortgage wasn't a problem with 2 incomes and tax credits (one working at home looking after the 2 then 3 children), but earlier the home worker business dried up while the other had been made redundant (for the umpteenth time), he later got another job which they are now relying on. The home worker (self employed) had been receiving maternity pay, but recently finished. So they have been finding it difficult and simply went to the bank and got relieved of their mortgage payments. The bank is apparently controlling the sale price (about 1.3x DCV) and appears to be chasing the market down in an area flooded with empty new builds.

They are aware they will be liable for the difference against their mortgage (0.9xDCV), but did have the impression the asking price was 'reasonable' and that houses just weren't selling.

Is this how the banks are holding up prices? They seem happy to wait 18 months+ for a sale. I know in most manufacturing if you hold onto the same stock for more than a year you need to classify it as a liability, for good reasons. Another bail out anyone?

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I keep saying this. I suppose it could be a dose of paranoia. I really think banks are transferring all their distressed stock into shell companies to take it off their balance sheets. I think that this is widespread throughout residential and commercial companies. I really think they haven’t priced for the second leg down and are or have counted on 40% falls to date being the maximum. That or they have no idea how our market should operate with tightened lending and a heavy reliance on the public sector.

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Haha, yeah my car is priced very "reasonably" but cars just arn't selling these days.

thats what i thought till last week.

other half wants a new golf . autumn 07 - new golf -1.9 tdi 105 3dr was 15k .

last week she tried 2 VW dealers both want 17.3k for a 1.6 tdi 105 3 dr

VW supposedly working through a massive backlog created by 200% increase in sales in germany because of their scrappage scheme. they sell the cars for more there too (altho stronger £ recently gap will of narrowed) so are concentrating on domestic customers , at one point they stopped taking orders.

can get from www.drivethedeal.com for 15.5k , altho would rather she just waited ..................with the stimulus withdrawn a crash is surely imminent

Edited by getdoon_weebobby
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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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