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SarahBell

Mortgage Help For The Newly Unemployed?

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Homeowners will now be able to apply for SMI from 13 weeks after redundancy, reduced from 39 weeks. A greater number of homeowners will also qualify for help after the threshold was raised to include mortgages of up to £200,000, increased from a maximum of £30,000 previously.

So what do you do for the first 13 weeks? Just ask nicely not to pay the mortgage? I know it's only 3 months - do banks just sit and chill.

Thinking about this from both sides - both the poor sods who become unemployed and the poor tax payer funding the banks/mortgages/everything else.

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Budget will aim to get savers spending

By Conor Ryan Political Correspondent

Thursday, July 22, 2010

As part of its plans to shape the December budget the Cabinet met for a full day session at Farmleigh yesterday to discuss the source of €3 billion in spending cuts.

But a prominent theme in the discussions was the need for measures to encourage people to stop hoarding cash and start putting money into the economy. No specific proposals have been circulated. However, the notion of schemes to stimulate spending has been agreed.

Taoiseach Brian Cowen said a variety of options would be considered to encourage consumers to return to the shops.

"I think it is important to point out that domestic consumer spending is an important part of generating growth in the economy.

"I think people increasingly are recognising that the confidence building we are bringing forward... is a crucial part of the recovery of the economy, so obviously we will... in preparations for budgets and preparing for the autumn term be looking at various initiatives in that area," he said

The Department of Finance said the information guiding this philosophy was the economy’s savings ratio, which has shown people with money are preferring to hold on to it rather than spend it. This ratio is expected to double by 2012, relative to pre-recession habits.

Justice Minister Dermot Ahern said this was a resource which needed to be tapped. "What we really need to do is try and get those people who are saving their money to spend their money in the economy."

Previously, the Government had pointed to its capital spending programme as its preferred choice stimulus package. However, this will be cut by €1bn next year to contribute to the overall target of €3bn in savings.

Last year, Finance Minister Brian Lenihan introduced a car scrappage scheme, which has boosted sales. It has not been proved whether this was spending brought forward from future years or if it stimulated unintended purchases.

Ministers will meet again on Monday for their last gathering before the August break. In September they will begin focused department-to-department meetings to hone the proposed budgetary measures.

The Government would not be drawn on the type of cuts discussed or potential new taxes or levies, but said all areas of spending were on the agenda and the Cabinet was eager to get the private sector active as a means to create jobs. "We must find a way of trying to loosen the purse strings and get out and start spending money," said a spokesman.

Fine Gael finance spokesman Michael Noonan said the Government needed to be more imaginative and look at ways to restructure the public sector to deliver the most savings.

This story appeared in the printed version of the Irish Examiner Thursday, July 22, 2010

Read more: http://www.examiner.ie/home/budget-will-aim-to-get-savers-spending-125853.html#ixzz0uPW0Itta

:o Now that the government has blowen its $ now it wants the prudent plebians to follow :unsure:

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Lenders don't make any legal moves for two months minimum. Often around six months.

The previous limit was £100k, and it's expected this will be restored next year.

They do. They Must.

what they dont do is take any actual action for a while...you get the letters though...without them, making a subsequent claim is harder for them.

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From the directgov website:

"The standard interest rate used to calculate SMI is currently 6.08%. From October 2010 the standard interest rate will be set at a level equal to the Bank of England’s published monthly average mortgage interest rate."

Late Autumn fall in payments methinks.

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From the directgov website:

"The standard interest rate used to calculate SMI is currently 6.08%. From October 2010 the standard interest rate will be set at a level equal to the Bank of England's published monthly average mortgage interest rate."

Late Autumn fall in payments methinks.

thats gonna hurt.

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thats gonna hurt.

I think commercial banks can live with the average rate, particularly as it is guaranteed.

Infact almost any mortgage loan under £200,000 is now a sure thing, cos if the borrower gets into trouble, the taxpayer steps in. Like having lots of free bets.

Someone deep in the Treasury must have the figures of what this is costing, and I bet it is scary. Never before has so much money been taxed out of hard working people, to keep them out of housing and given to those not working, to keep them in their housing.

I have a new scheme. Do nothing. Get into trouble with your mortgage, Mr Taxpayer doesnt stump up. Leaves it to the bank, the law, and the borrower to sort out. That works.

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Homeowners will now be able to apply for SMI from 13 weeks after redundancy, reduced from 39 weeks. A greater number of homeowners will also qualify for help after the threshold was raised to include mortgages of up to £200,000, increased from a maximum of £30,000 previously.

So what do you do for the first 13 weeks? Just ask nicely not to pay the mortgage? I know it's only 3 months - do banks just sit and chill.

Thinking about this from both sides - both the poor sods who become unemployed and the poor tax payer funding the banks/mortgages/everything else.

To put it quite bluntly, those newly unemployed should continue to pay the mortgage with their redudency packages (if fortunate to have been given one), or with their savings left over from their paypackets every month...but oh wait a minute, whoever said you should save for a rainy day?

Common sense prevails...those without it will suffer.

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They do. They Must.

what they dont do is take any actual action for a while...you get the letters though...without them, making a subsequent claim is harder for them.

I went about £500 in arrears once , less then half a months payment it was not because i did not pay but a mistake at the banks end.

The letter I got was unbelievable you would have thought i had robbed them a gunpoint . The top of the letter was written in great big letters underlined and in bold format.

It was threat, threat, threat all the way down the letter, when i phoned the women on the other end spoke to me like I was a piece of dirt , stateing I had to speak to an arrears officer , when i got through to this person i was livid and when he confessed it was their fault , problem with the computer and that it happened often, he asked why i was so annoyed. He did get a mouthfull form me.

Would hate to see the letters and the attitude to people who are six months in arrears.

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  • 261 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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