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Labour's Mortgage Help Will Stay

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Labour's mortgage help will stay

Schemes introduced by the Labour government to support struggling homeowners will be kept by the coalition after a report found they had "a notable effect" helping those at risk of repossession.

The independent report warned that the risk of increased repossessions would remain "high" in the years ahead, said the Department for Communities and Local Government. The Council of Mortgage Lenders' latest forecast is that there will be 53,000 repossessions in 2010.

The Homeowners Mortgage Support Scheme faced criticism after it emerged that it helped only 34 households in the first year after its launch by then housing minister Margaret Beckett in April 2009.

But a new report by Professor John Muellbauer and Dr Janine Aron of Oxford University has found that it had a positive impact on mortgage arrears management, encouraging greater patience from lenders when borrowers miss payments.

Housing minister Grant Shapps announced that the scheme, which allows homeowners to defer up to 70% of mortgage interest payments if their income drops, would remain in place as a "backstop" until April 2011.

Meanwhile a separate evaluation by Professor Steve Wilcox from the University of York and Heriot Watt University's School of the Built Environment found that there was a case for the scheme to continue until the housing market has recovered.

The evaluation also records "widespread support" for the separate Mortgage Rescue Scheme, launched in January 2009, which helps the most vulnerable householders remain in their homes by shifting to shared equity or "mortgage to rent".

Mr Shapps confirmed that it would continue to operate, though its long-term future will be up for consideration in this October's spending review process. The scheme will be refocused to delivery better value for money, with a reduction in the grant rate paid to housing associations and tighter caps on property price and repair costs, he said.

Mr Shapps announced that the DCLG would step up work with organisations such as Citizens Advice and Shelter - as well as Martin Lewis, creator of Moneysavingexpert.com - to promote the help available to struggling homeowners.

www.direct.gov.uk/mortgagehelp(Homeowners Mortgage Support Scheme)

Copyright © 2010 The Press Association. All rights reserved.

Related articles

* Mortgage Rescue Scheme funding cut

Citywire.co.uk - 1 hour ago

* Mortgage Rescue Scheme under threat

Finance Markets (blog) - 1 hour ago

* Government reviews mortgage rescue schemes

Home Move - 47 minutes ago

* More coverage (1) »

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"as well as Martin Lewis, creator of Moneysavingexpert.com - to promote the help available to struggling homeowners."

Oh what>??????????

He does nothing for free! (Apart from encourage sheeple to spend and take on credit cards)

Edited by SarahBell

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This is simply prolonging the inevitable and should any of these 'saved' home-owners ultimately be declared bankrupt then the taxpayer is left footing the bill.

Sadly the sick irony is since we own most of the banks then we foot the bill either way.

I've never seen so much money wasted so badly...

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This is simply prolonging the inevitable and should any of these 'saved' home-owners ultimately be declared bankrupt then the taxpayer is left footing the bill.

Sadly the sick irony is since we own most of the banks then we foot the bill either way.

I've never seen so much money wasted so badly...

It is bizarre they would be better off subsidising bread and water everybody needs those.

Or putting the money into building council houses.

I will not return to the property market until the government stops subsidising higher prices.

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Labour's mortgage help will stay

Schemes introduced by the Labour government to support struggling homeowners will be kept by the coalition after a report found they had "a notable effect" helping those at risk of repossession.

The independent report warned that the risk of increased repossessions would remain "high" in the years ahead, said the Department for Communities and Local Government. The Council of Mortgage Lenders' latest forecast is that there will be 53,000 repossessions in 2010.

The Homeowners Mortgage Support Scheme faced criticism after it emerged that it helped only 34 households in the first year after its launch by then housing minister Margaret Beckett in April 2009.

But a new report by Professor John Muellbauer and Dr Janine Aron of Oxford University has found that it had a positive impact on mortgage arrears management, encouraging greater patience from lenders when borrowers miss payments.

Housing minister Grant Shapps announced that the scheme, which allows homeowners to defer up to 70% of mortgage interest payments if their income drops, would remain in place as a "backstop" until April 2011.

Meanwhile a separate evaluation by Professor Steve Wilcox from the University of York and Heriot Watt University's School of the Built Environment found that there was a case for the scheme to continue until the housing market has recovered.

The evaluation also records "widespread support" for the separate Mortgage Rescue Scheme, launched in January 2009, which helps the most vulnerable householders remain in their homes by shifting to shared equity or "mortgage to rent".

Mr Shapps confirmed that it would continue to operate, though its long-term future will be up for consideration in this October's spending review process. The scheme will be refocused to delivery better value for money, with a reduction in the grant rate paid to housing associations and tighter caps on property price and repair costs, he said.

Mr Shapps announced that the DCLG would step up work with organisations such as Citizens Advice and Shelter - as well as Martin Lewis, creator of Moneysavingexpert.com - to promote the help available to struggling homeowners.

www.direct.gov.uk/mortgagehelp(Homeowners Mortgage Support Scheme)

Copyright © 2010 The Press Association. All rights reserved.

Related articles

* Mortgage Rescue Scheme funding cut

Citywire.co.uk - 1 hour ago

* Mortgage Rescue Scheme under threat

Finance Markets (blog) - 1 hour ago

* Government reviews mortgage rescue schemes

Home Move - 47 minutes ago

* More coverage (1) »

Add News to your iGoogle Homepage Add News to your Google Homepage

The Press Association

http://www.google.com/hostednews/ukpress/article/ALeqM5hf4y8vSOTeOtjckEyV-JpyboJEYg?index=0

Labour's mortgage help will stay - Call that help?

Schemes introduced by the Labour government to support struggling homeowners will be kept by the coalition after a report found they had "a notable effect" helping those at risk of repossession. - You mean that it was a surprise that giving people other peoples money for free helped them?

The independent report warned that the risk of increased repossessions would remain "high" in the years ahead - Thats cos everyone else with mortgages has to pay the tax for this stupidity, putting their mortgages at risk. And those buying have to pay higher prices because those in trouble are not releasing the property back to the market.

The Homeowners Mortgage Support Scheme faced criticism after it emerged that it helped only 34 households in the first year after its launch by then housing minister Margaret Beckett in April 2009. - Yes, it helped 34 too many people, and needed to be cut back, by 34.

But a new report by Professor John Muellbauer and Dr Janine Aron of Oxford University has found that it had a positive impact on mortgage arrears management, encouraging greater patience from lenders when borrowers miss payments. - Are these guys Rocket Scientists? They managed to work out that if the taxpayer pays the mortgage instead of the mortgagee, who cant pay, then the lenders are happier than if the mortgagee doesnt pay? WTF?

Housing minister Grant Shapps announced that the scheme, which allows homeowners to defer up to 70% of mortgage interest payments if their income drops, would remain in place as a "backstop" until April 2011. - Grant Shapps needs to go, now. He is clearly clueless. Dont the new Government realise that our deficit isnt falling as the economy grows, but is growing as the economy is shrinking. No point in working and producing stuff, as they take it off you if you do, so you cant buy a house, and give it to someone who isnt working and producing, so they can stay in a house. Great work.

Meanwhile a separate evaluation by Professor Steve Wilcox from the University of York and Heriot Watt University's School of the Built Environment found that there was a case for the scheme to continue until the housing market has recovered. - More Rocket Scientists. They dont seem to have looked at both sides of the equation now do they, like the cost of all of this? If they continue the scheme, it will help the nation go bust. As for the housing market recovering, what are they talking about? A market is a place where buyers and sellers come together, and trade, with the price moving up and down in response to supply and demand. It only doesnt work when someone tries to rig the market, which this scheme is doing. If you look merely at prices, and talk of a recovery in 'prices', then we can see that prices are still at close to historical highs with regards to median income. There is no gap to recover to, indeed the only recovery that is needed is a recovery to normal price levels, which is down.

The evaluation also records "widespread support" for the separate Mortgage Rescue Scheme, launched in January 2009, which helps the most vulnerable householders remain in their homes by shifting to shared equity or "mortgage to rent". - Well if you ask people who are getting free money what they think, you will find you get "widespread support". Why dont they ask the same question here on HPC?

Mr Shapps confirmed that it would continue to operate, though its long-term future will be up for consideration in this October's spending review process. - Can you guess what I am praying the decision will be in that spending review? Lets hope the decision is out of Mr Shapps' hands.

The scheme will be refocused to delivery better value for money, - Close it down, that would be value for money.

with a reduction in the grant rate paid to housing associations and tighter caps on property price and repair costs, he said. - The taxpayer pays for repairs too???? Lord have Mercy.

Mr Shapps announced that the DCLG would step up work with organisations such as Citizens Advice and Shelter - as well as Martin Lewis, creator of Moneysavingexpert.com - to promote the help available to struggling homeowners. - How about helping struggling taxpayers who cant afford a home, surely putting those working and producing should come first in any consideration?

This scheme was clearly set up, no expense spared, to keep repossessions down before the election. In a way, you can understand it, even if it is a crime against the taxpayer.

But now we have a new government, why dont they just ditch it, and allow the market to function normally? The nations nearly bust, we gotta do something. Holding on to holes in the pocket of this magnitude, isnt going to save us.

Then again, a sovereign default will force government to spend only what it raises in tax. Maybe a default will be a good thing.

Edited by leicestersq

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Labour's mortgage help will stay - Call that help?

Schemes introduced by the Labour government to support struggling homeowners will be kept by the coalition after a report found they had "a notable effect" helping those at risk of repossession. - You mean that it was a surprise that giving people other peoples money for free helped them?

The independent report warned that the risk of increased repossessions would remain "high" in the years ahead - Thats cos everyone else with mortgages has to pay the tax for this stupidity, putting their mortgages at risk. And those buying have to pay higher prices because those in trouble are not releasing the property back to the market.

The Homeowners Mortgage Support Scheme faced criticism after it emerged that it helped only 34 households in the first year after its launch by then housing minister Margaret Beckett in April 2009. - Yes, it helped 34 too many people, and needed to be cut back, by 34.

But a new report by Professor John Muellbauer and Dr Janine Aron of Oxford University has found that it had a positive impact on mortgage arrears management, encouraging greater patience from lenders when borrowers miss payments. - Are these guys Rocket Scientists? They managed to work out that if the taxpayer pays the mortgage instead of the mortgagee, who cant pay, then the lenders are happier than if the mortgagee doesnt pay? WTF?

Housing minister Grant Shapps announced that the scheme, which allows homeowners to defer up to 70% of mortgage interest payments if their income drops, would remain in place as a "backstop" until April 2011. - Grant Shapps needs to go, now. He is clearly clueless. Dont the new Government realise that our deficit isnt falling as the economy grows, but is growing as the economy is shrinking. No point in working and producing stuff, as they take it off you if you do, so you cant buy a house, and give it to someone who isnt working and producing, so they can stay in a house. Great work.

Meanwhile a separate evaluation by Professor Steve Wilcox from the University of York and Heriot Watt University's School of the Built Environment found that there was a case for the scheme to continue until the housing market has recovered. - More Rocket Scientists. They dont seem to have looked at both sides of the equation now do they, like the cost of all of this? If they continue the scheme, it will help the nation go bust. As for the housing market recovering, what are they talking about? A market is a place where buyers and sellers come together, and trade, with the price moving up and down in response to supply and demand. It only doesnt work when someone tries to rig the market, which this scheme is doing. If you look merely at prices, and talk of a recovery in 'prices', then we can see that prices are still at close to historical highs with regards to median income. There is no gap to recover to, indeed the only recovery that is needed is a recovery to normal price levels, which is down.

The evaluation also records "widespread support" for the separate Mortgage Rescue Scheme, launched in January 2009, which helps the most vulnerable householders remain in their homes by shifting to shared equity or "mortgage to rent". - Well if you ask people who are getting free money what they think, you will find you get "widespread support". Why dont they ask the same question here on HPC?

Mr Shapps confirmed that it would continue to operate, though its long-term future will be up for consideration in this October's spending review process. - Can you guess what I am praying the decision will be in that spending review? Lets hope the decision is out of Mr Shapps' hands.

The scheme will be refocused to delivery better value for money, - Close it down, that would be value for money.

with a reduction in the grant rate paid to housing associations and tighter caps on property price and repair costs, he said. - The taxpayer pays for repairs too???? Lord have Mercy.

Mr Shapps announced that the DCLG would step up work with organisations such as Citizens Advice and Shelter - as well as Martin Lewis, creator of Moneysavingexpert.com - to promote the help available to struggling homeowners. - How about helping struggling taxpayers who cant afford a home, surely putting those working and producing should come first in any consideration?

This scheme was clearly set up, no expense spared, to keep repossessions down before the election. In a way, you can understand it, even if it is a crime against the taxpayer.

But now we have a new government, why dont they just ditch it, and allow the market to function normally? The nations nearly bust, we gotta do something. Holding on to holes in the pocket of this magnitude, isnt going to save us.

Then again, a sovereign default will force government to spend only what it raises in tax. Maybe a default will be a good thing.

....and breathe...

chill out and relax man, youll give yourself a hernia, the govt have been heaping malinvestment upon malinvestment over the last decade to avoid this credit collapse, a bit more malinvestment is all good, ultimately the more that is malinvested the bigger the correction/collapse will be. Take a chill pill and enjoy the weather, if its any consolation sterlings back below 1.60 CHF, its all good, you cant have a good sovereign default without alot of stupidity along the way, you'll be able to laugh about it in 40 years and tell your grandkids

Edited by Tamara De Lempicka

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....and breathe...

chill out and relax man, youll give yourself a hernia, the govt have been heaping malinvestment upon malinvestment over the last decade to avoid this credit collapse, a bit more malinvestment is all good, ultimately the more that is malinvested the bigger the correction/collapse will be. Take a chill pill and enjoy the weather, if its any consolation sterlings back below 1.60 CHF, its all good, you cant have a good sovereign default without alot of stupidity along the way, you'll be able to laugh about it in 40 years and tell your grandkids

Hernia = Coronary

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you cant have a good sovereign default without alot of stupidity along the way

:D:D

you'll be able to laugh about it in 40 years and tell your grandkids

Sure, but maybe he doesn't fancy the idea of renting for the next 40 years :ph34r:

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Labour's mortgage help will stay - Call that help?

Schemes introduced by the Labour government to support struggling homeowners will be kept by the coalition after a report found they had "a notable effect" helping those at risk of repossession. - You mean that it was a surprise that giving people other peoples money for free helped them?

The independent report warned that the risk of increased repossessions would remain "high" in the years ahead - Thats cos everyone else with mortgages has to pay the tax for this stupidity, putting their mortgages at risk. And those buying have to pay higher prices because those in trouble are not releasing the property back to the market.

The Homeowners Mortgage Support Scheme faced criticism after it emerged that it helped only 34 households in the first year after its launch by then housing minister Margaret Beckett in April 2009. - Yes, it helped 34 too many people, and needed to be cut back, by 34.

But a new report by Professor John Muellbauer and Dr Janine Aron of Oxford University has found that it had a positive impact on mortgage arrears management, encouraging greater patience from lenders when borrowers miss payments. - Are these guys Rocket Scientists? They managed to work out that if the taxpayer pays the mortgage instead of the mortgagee, who cant pay, then the lenders are happier than if the mortgagee doesnt pay? WTF?

Housing minister Grant Shapps announced that the scheme, which allows homeowners to defer up to 70% of mortgage interest payments if their income drops, would remain in place as a "backstop" until April 2011. - Grant Shapps needs to go, now. He is clearly clueless. Dont the new Government realise that our deficit isnt falling as the economy grows, but is growing as the economy is shrinking. No point in working and producing stuff, as they take it off you if you do, so you cant buy a house, and give it to someone who isnt working and producing, so they can stay in a house. Great work.

Meanwhile a separate evaluation by Professor Steve Wilcox from the University of York and Heriot Watt University's School of the Built Environment found that there was a case for the scheme to continue until the housing market has recovered. - More Rocket Scientists. They dont seem to have looked at both sides of the equation now do they, like the cost of all of this? If they continue the scheme, it will help the nation go bust. As for the housing market recovering, what are they talking about? A market is a place where buyers and sellers come together, and trade, with the price moving up and down in response to supply and demand. It only doesnt work when someone tries to rig the market, which this scheme is doing. If you look merely at prices, and talk of a recovery in 'prices', then we can see that prices are still at close to historical highs with regards to median income. There is no gap to recover to, indeed the only recovery that is needed is a recovery to normal price levels, which is down.

The evaluation also records "widespread support" for the separate Mortgage Rescue Scheme, launched in January 2009, which helps the most vulnerable householders remain in their homes by shifting to shared equity or "mortgage to rent". - Well if you ask people who are getting free money what they think, you will find you get "widespread support". Why dont they ask the same question here on HPC?

Mr Shapps confirmed that it would continue to operate, though its long-term future will be up for consideration in this October's spending review process. - Can you guess what I am praying the decision will be in that spending review? Lets hope the decision is out of Mr Shapps' hands.

The scheme will be refocused to delivery better value for money, - Close it down, that would be value for money.

with a reduction in the grant rate paid to housing associations and tighter caps on property price and repair costs, he said. - The taxpayer pays for repairs too???? Lord have Mercy.

Mr Shapps announced that the DCLG would step up work with organisations such as Citizens Advice and Shelter - as well as Martin Lewis, creator of Moneysavingexpert.com - to promote the help available to struggling homeowners. - How about helping struggling taxpayers who cant afford a home, surely putting those working and producing should come first in any consideration?

This scheme was clearly set up, no expense spared, to keep repossessions down before the election. In a way, you can understand it, even if it is a crime against the taxpayer.

But now we have a new government, why dont they just ditch it, and allow the market to function normally? The nations nearly bust, we gotta do something. Holding on to holes in the pocket of this magnitude, isnt going to save us.

Then again, a sovereign default will force government to spend only what it raises in tax. Maybe a default will be a good thing.

So on balance, overall it sounds like you are not in favour of the scheme?

http://en.wikipedia.org/wiki/Edict_on_Maximum_Prices

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I do hope that people that lied about their incomes, and then defaulted on their mortgages are not covered by this scheme.

Honest taxpayers funding mortgage fraud is great way to keep house prices up.

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I've never seen so much money wasted so badly...

Bank support is vital to the nation & don't you forget it young man!

I'm sick of these selfish attitudes on here. The national interest comes first, it's a British tradition.

Oh sh*t! - HELP! - How do I remove a tongue wedged in my left cheek? - It's never happened before :(

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chill out and relax man, youll give yourself a hernia, the govt have been heaping malinvestment upon malinvestment over the last decade to avoid this credit collapse, a bit more malinvestment is all good, ultimately the more that is malinvested the bigger the correction/collapse will be. Take a chill pill and enjoy the weather, if its any consolation sterlings back below 1.60 CHF, its all good, you cant have a good sovereign default without alot of stupidity along the way, you'll be able to laugh about it in 40 years and tell your grandkids

Post of the day...

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Does this mean it's a good idea for someone to buy a house with a mortgage before they lose their job?

Not really, the government might help you out on the cashflow (while it can afford to) but the capital loss is all yours.

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Not really, the government might help you out on the cashflow (while it can afford to) but the capital loss is all yours.

Capital loss if they don't print money like it's going out of fashion?

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Labour's mortgage help will stay

Very bad news. Just a few good aspects:

(...) the scheme (...) would remain (...) until April 2011.

(...) its long-term future will be up for consideration in this October's spending review process. The scheme will be refocused to delivery better value for money, with a reduction in the grant rate paid to housing associations and tighter caps on property price and repair costs (...)

And the most stupid quote:

Meanwhile a separate evaluation by Professor Steve Wilcox from the University of York and Heriot Watt University's School of the Built Environment found that there was a case for the scheme to continue until the housing market has recovered.

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It is bizarre they would be better off subsidising bread and water everybody needs those.

Or putting the money into building council houses.

I will not return to the property market until the government stops subsidising higher prices.

Never going to happen though.....I used to believe prices would crash but now am thinking the best bet is if I cant beat them I may as well join them!

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Does this mean it's a good idea for someone to buy a house with a mortgage before they lose their job?

Is it true they won't pay your rent if you have savings, but they pay your mortgage interest if you plough all your money into a house?

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Never going to happen though.....I used to believe prices would crash but now am thinking the best bet is if I cant beat them I may as well join them!

Knowingly entering a Ponzi scheme, even at the last round of the scheme, can be rational economically if there is a reasonable expectation that government or other deep pockets will bail out those participating in the Ponzi scheme.[2]

http://en.wikipedia.org/wiki/Ponzi_scheme

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Is it true they won't pay your rent if you have savings, but they pay your mortgage interest if you plough all your money into a house?

Yes. Anything more than £16k in savings, and you're on your own. Laughably, if you spent all that £16k on bling, you'd get your rent paid. Where's the justice in that? mad.gif

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Yes. Anything more than £16k in savings, and you're on your own. Laughably, if you spent all that £16k on bling, you'd get your rent paid. Where's the justice in that? mad.gif

I'll say it again, saving is sooooo last century. You guys will probably get wiped out. I thought about building a cache under my bead, but tptb have a nasty habit of expiring and replacing bank notes.

Edited by PopGun

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This is all a bit ... meh.

The scheme they're talking about depends on housing associations going along with it. I know for certain that some were pulling out anyway because they had to spend £10k everytime they bought out a mortgage in order to get the property up to scratch for renting to the original borrowers. Plus the article says that grants to HAs are to be reduced. Looks good on paper, not so effective in practice. I don't know much about the shared equity side of the scheme.

I think the real point in the report is that the scheme encouraged lenders to be more forebearing. Pressure to forebear came from many different sides ("save the whales" judges, pre-action protocol etc), and it's wishful thinking to isolate this scheme as the crucial factor.

The one the CAB is most worried about is the support for mortgage interest scheme - if the gubmint returns the limit of qualifying mortgage from £200k to £100k, they expect many stuffees.

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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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