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Bbc -Homeowners Given More Protection

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Personally, I don't think these new measures will make any difference to the future downward trend in housprices

http://news.bbc.co.uk/1/hi/business/10413107.stm

Makes little sense to me. I dont understand why they do this. Surely if a homeowner stops paying, and breaches their contract, the bank should have the whip hand and if they feel it is right, repossess. Ensure that happens quickly and with as little fuss as possible.

Banks dont want to repossess, it doesnt make them money. But if they need to, let it happen swiftly as possible.

Court hearings should be quite simple. Have you paid on time? No. Ok, the bank can take the house. Simples.

If you knew that this might happen, you would a) get a smaller mortgage, B) get insurance, and C) pay on Bl**dy time.

We would end up with less repossessions, and a lot less in court and lawyers fees.

Then again, that is why they have all this nonsense, to ensure the lawyers get a great big payout wrangling over that which doesnt need to be wrangled over.

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If someone is struggling to pay their mortgage, it's highly likely they've been using the CC to pay other stuff, or to stay alive since the mortgage is usually the first thing to get paid.

Do the decent thing and repossess them - they'll probably be better off rather than worrying themselves to an early grave over "their" home.

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So the toothless, incompetent FSA suggest that someone who sells and rents back their property, normally due to their inability to meet their agreed financial commitments has more rights than a "normal" tennant.

What a joke!

security of tenure for customers of at least five years

I keep telling my children life's not fair, it seems that life is fair but only for debtors.

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So the toothless, incompetent FSA suggest that someone who sells and rents back their property, normally due to their inability to meet their agreed financial commitments has more rights than a "normal" tennant.

What a joke!

I keep telling my children life's not fair, it seems that life is fair but only for debtors.

Repo,

bang on.

What it does mean is that lenders now have to factor in on their decision to lend, the defences and costs that they have to overcome and pay, in order to repossess when the borrower refuses to pay. In many ways it is almost an incitement to the borrower not to pay, after all, there appears to be no sanction for them if they do not pay.

At its very basic, lending and borrowing needs pain inflicted on the borrower if they dont repay, to make the system work. If you borrow from the mafia, and then fail to repay, if they cant hurt you, they will quickly find that no one repays. Next thing is that no one lends to anyone.

The pain of the defaulted borrower is a vital in any lending system. Without it, the banks might as well close their doors.

Dont this government understand the basics? I know that Brown was clueless, but I did expect a bit better from the Tories.

It isnt hard, just remove all legal protection for the borrower if they fail to pay, and the system will work.

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Repo,

bang on.

What it does mean is that lenders now have to factor in on their decision to lend, the defences and costs that they have to overcome and pay, in order to repossess when the borrower refuses to pay. In many ways it is almost an incitement to the borrower not to pay, after all, there appears to be no sanction for them if they do not pay.

At its very basic, lending and borrowing needs pain inflicted on the borrower if they dont repay, to make the system work. If you borrow from the mafia, and then fail to repay, if they cant hurt you, they will quickly find that no one repays. Next thing is that no one lends to anyone.

The pain of the defaulted borrower is a vital in any lending system. Without it, the banks might as well close their doors.

Dont this government understand the basics? I know that Brown was clueless, but I did expect a bit better from the Tories.

It isnt hard, just remove all legal protection for the borrower if they fail to pay, and the system will work.

Moral hazard, wtf is that?

I've read some interesting articles today about getting banks lending again ... as you stated who will lend when there's no guarantee that you will ever get the money back? What will this do to the worlds economy not just UK house prices?

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Moral hazard, wtf is that?

I've read some interesting articles today about getting banks lending again ... as you stated who will lend when there's no guarantee that you will ever get the money back? What will this do to the worlds economy not just UK house prices?

Exactly.

If you want banks to lend, then you have to give them a good chance of getting their money back. And that means that they must be allowed to wield some sort of stick if the borrower doesnt repay.

Sounds like housing isnt going to be a great place to make money with these sorts of defences for the defaulted borrower.

When you cant get justice through the courts, you end up with lenders who get their justice elsewhere. Mr Mafioso must be rubbing their hands with glee at this sort of madness, because suddenly they can now have some business that the banks will have to turn away.

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Exactly.

If you want banks to lend, then you have to give them a good chance of getting their money back. And that means that they must be allowed to wield some sort of stick if the borrower doesnt repay.

Sounds like housing isnt going to be a great place to make money with these sorts of defences for the defaulted borrower.

When you cant get justice through the courts, you end up with lenders who get their justice elsewhere. Mr Mafioso must be rubbing their hands with glee at this sort of madness, because suddenly they can now have some business that the banks will have to turn away.

bank are lenders?

When did that happen?

On the OP - the number sare just too great to repossess all at once, it would break the courts, the banks, the whole ability to get people to sign up to mortgages and all the rest of it. They simply can't chuck 20% of people onto the streets in a compressed timeframe. Not feasible.

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Moral hazard, wtf is that?

I've read some interesting articles today about getting banks lending again ... as you stated who will lend when there's no guarantee that you will ever get the money back? What will this do to the worlds economy not just UK house prices?

They'll get their money back thru QE. Just sell the duff mortgage to the BoE. The BoE will be buying securitized mortgages. That'll get the banks lending silly multiples again. And the people will LOVE it. The daily mail and express will declare "at last, 100% mortgages" on the front page. And the can will be kicked down the road another 10 years.

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Maybe this is the first step in a realistic attempt to deal with the coming price falls. I've said for a while we need policies to deal with the fallout. The next thing I think we will see is improved mortgage portability allowing people in negative equity to move if they have to. We have a major problem and it needs to be managed out of the system.

I'm watching with interest.

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Not on message I am sure but Banks might decide that its better to focus on BTL lending than residential... greater margin and now apparently greater security !

I had the same sinking feeling. At least rent (even if rents are low) provides some sort of back stop.

They'll get their money back thru QE. Just sell the duff mortgage to the BoE. The BoE will be buying securitized mortgages. That'll get the banks lending silly multiples again. And the people will LOVE it. The daily mail and express will declare "at last, 100% mortgages" on the front page. And the can will be kicked down the road another 10 years.

How would this affect bond prices. I know there are some who are all expecting "printy printy" but this doesn't work for my non-financial logic.

Maybe this is the first step in a realistic attempt to deal with the coming price falls. I've said for a while we need policies to deal with the fallout. The next thing I think we will see is improved mortgage portability allowing people in negative equity to move if they have to. We have a major problem and it needs to be managed out of the system.

I'm watching with interest.

I believe we have already seen a number of institutions offering this as 125% mortgages for current borrowers if wishing to move and keep their mortgage. Linky

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  • 261 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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