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EmmaRoid

Smi Changes Explained On The Tv

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Explaining the changes we've been discussing for months with the inevitable sob stories. The only reference to the sort of detail we dissected the other week was that at a flat rate payment of 6.08%, 92% of "customers" receive benefit in excess of their need. But its alright, she said, it doesnt go into peoples' pockets it goes straight to the banks :o to cover arrears etc.

So its not a benefit for the unemployed, its a bank subsidy...

Anyway, its hitting the mainstream media now, all grist to the mill

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I was watching BBC breakfast this morning and they where highlighting that changes are looming to those receiving state aid with their mortgages, I think they where talking of 40% cuts and that large numbers of retired people where going to be affected!

Is there a large number of retired people receiving this aid? Late life mortgages because they've moved or because they MEW'd?

Can't find a link to this anywhere on the BBC site at the minute, so details are rather sketchy and vague.

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I was watching BBC breakfast this morning and they where highlighting that changes are looming to those receiving state aid with their mortgages, I think they where talking of 40% cuts and that large numbers of retired people where going to be affected!

Is there a large number of retired people receiving this aid? Late life mortgages because they've moved or because they MEW'd?

Can't find a link to this anywhere on the BBC site at the minute, so details are rather sketchy and vague.

Someone posted a link to a report on SMI recently. I think it said that the vast majority in reciept if SMI were 60+

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I was watching BBC breakfast this morning and they where highlighting that changes are looming to those receiving state aid with their mortgages, I think they where talking of 40% cuts and that large numbers of retired people where going to be affected!

Is there a large number of retired people receiving this aid? Late life mortgages because they've moved or because they MEW'd?

Can't find a link to this anywhere on the BBC site at the minute, so details are rather sketchy and vague.

This made my blood boil - people with no job wining about not getting their entire mortgage paid for free.

Well tough shit... if you can't afford to pay for it you are extraordinarily lucky to have any portion covered - let alone up to 3.6% interest only.

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as has been discussed here before - we were sold a pup with this scheme which was supposed to help those short term who lost their job and supposed to be two percent (or something like that) above base rate interest only for two years max after a three month waiting period. What it seems has transpired is that a lot of the help goes to retirees (on pension credit) who do not have to wait and receive it ad infinitum.

This irks me as

a) retirees should not still be paying off a mortgage, most of us at that age have either paid our house mortgage off or downsized to remove our debts

b. why should the good old taxpayer (of which I am one) be paying for some other boomers mortgage interest at 3+ percent let alone 6.08 percent.

c) they have been receiving this money over the last couple of years and thought the gravy train would continue for ever and now they are whinging. :angry:

Edited by olliegog

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sorry - vented my spleen on the other thread. Actually the payment doesn't just go to cover arrears on payments it also goes to pay off some of the capital outstanding - buy your own house courtesy of the taxpayer.

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sorry - vented my spleen on the other thread. Actually the payment doesn't just go to cover arrears on payments it also goes to pay off some of the capital outstanding - buy your own house courtesy of the taxpayer.

the logic behind this was that people in arrears are normally put on a penalty interest rate...mine was 2% extra in 1990.

It appears that you dont even have to be in arrears to qualify for this...just had a drop in income.

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In France you can't normally get a mortgage if the term would end after retirement age. There are exceptions, if you have a huge pension.

Quote below from broker:

"Minimum of 5 years & Maximum of 25 years (but more commonly 20 years maximum with most lenders). For employed applicants, not normally beyond state retirement age unless there is adequate verified pension or investment income in retirement. Clients who are already retired may be able to secure a mortgage on the basis of pension income - terms assessed on an ad hoc basis, but cases below € 80,000 euros are not normally considered."

But then, in France questions are asked if your accommodation costs (rent or mortgage) are more one third of your income - a landlord probably wouldn't let a flat/house to you and you would be unlikely to get a mortgage, if they were. Similarly, if you want to borrow money for any purpose, the repayments on all your borrowing have to be one third of your income or less, or you probably won't get the loan.

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In France you can't normally get a mortgage if the term would end after retirement age. There are exceptions, if you have a huge pension.

Quote below from broker:

"Minimum of 5 years & Maximum of 25 years (but more commonly 20 years maximum with most lenders). For employed applicants, not normally beyond state retirement age unless there is adequate verified pension or investment income in retirement. Clients who are already retired may be able to secure a mortgage on the basis of pension income - terms assessed on an ad hoc basis, but cases below € 80,000 euros are not normally considered."

But then, in France questions are asked if your accommodation costs (rent or mortgage) are more one third of your income - a landlord probably wouldn't let a flat/house to you and you would be unlikely to get a mortgage, if they were. Similarly, if you want to borrow money for any purpose, the repayments on all your borrowing have to be one third of your income or less, or you probably won't get the loan.

France is a civilized country, with just a very basic controls that prevent the banksters steamrollering the economy.

It is not difficult, it is very easier to control the worst excesses of the banking system - the Bankrupt of England are liars when they say otherwise.

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In France you can't normally get a mortgage if the term would end after retirement age. There are exceptions, if you have a huge pension.

I always thought that was the case in the UK too, but perhaps I'm remebering the crash of the early 90s when supposedly lessons had been learned and it'd never be allowed to happen again <_<

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I always thought that was the case in the UK too, but perhaps I'm remebering the crash of the early 90s when supposedly lessons had been learned and it'd never be allowed to happen again <_<

Yes, they LIED.

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Explaining the changes we've been discussing for months with the inevitable sob stories. The only reference to the sort of detail we dissected the other week was that at a flat rate payment of 6.08%, 92% of "customers" receive benefit in excess of their need. But its alright, she said, it doesnt go into peoples' pockets it goes straight to the banks :o to cover arrears etc.

Long been a bugbear of mine, sadly even with the drop to 3% most people are still going to receive overpayments, and with the majority being pensioners with no time limit there's no end in sight to this.

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I always thought that was the case in the UK too, but perhaps I'm remebering the crash of the early 90s when supposedly lessons had been learned and it'd never be allowed to happen again <_<

But it was different this time, boom / bust had been abolished didn't you get the memo...

To be a successful politician you have to believe your own lies.

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I am putting this one down as a test of the Government.

With spending out of hand, this is a very easy scheme to axe entirely. It is a total waste of other peoples money. Will they do it though?

If not, sell everything you have and buy gold, cos the state is going to default very soon.

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Man at 64 and 11 months, about to retire, takes out a big mortgage (MEW) against his house.

Government pays the mortgage for him, including the capital repayments, and he gets to keep the money or blow it on fast cars and holidays.

Can anyone see the problem with this?

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There is an end, the extra payment is being used to pay down the capital so when it has been paid off they will not need SMI.

I think you are making a dangerous assumption.

Under the old system, didnt landlords continue to pocket housing benefit, no reason for them to tell anyone to stop. Same with SMI, I bet payments will go on for longer than there is a mortgage to pay.

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I always thought that was the case in the UK too, but perhaps I'm remebering the crash of the early 90s when supposedly lessons had been learned and it'd never be allowed to happen again <_<

Nobody bothered to check to see if the saving scheme linked to the interest only mortgage was still being paid...the direct debit was just cancelled.

...before the repayment savings policy was assigned to the debt. ;)

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Is there a large number of retired people receiving this aid? Late life mortgages because they've moved or because they MEW'd?

Theyve probably got plenty of equity. IMO any outstanding mortgages at less than 60% of the homes values should not be subsidised. Its bloody criminal.

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Man at 64 and 11 months, about to retire, takes out a big mortgage (MEW) against his house.

Government pays the mortgage for him, including the capital repayments, and he gets to keep the money or blow it on fast cars and holidays.

Can anyone see the problem with this?

but think how hard they worked all their lives, they earned everything the state gave them

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Theyve probably got plenty of equity. IMO any outstanding mortgages at less than 60% of the homes values should not be subsidised. Its bloody criminal.

You're assuming the scheme was designed to help those in financial difficulty. It wasn't. It was designed to prevent house price falls caused by forced sales. It is a pure and simple state funded bailout of the housing pyramid scheme. If you've bought a house for 200K you don't need to sell it for the 100-150K it is actually worth because the government will pay up for the whole 200K. It keeps the value of houses pegged. That's a1/4 million houses kept off the market by government intervention. Add to this the government subsidy towards BTL via housing benefits (1.5 million houses in private rented sector) and there is a massive central government subsidy forcing up housing costs. None of this is about helping those in need. It is about keeping house price inflation going.

Edit: that is almost 2 million UK mortgages being paid by the government. If they are paying the mortgage for you, why sell? Especially if you get to keep any equity gain, if you hang on for long enough. It's a one way bet.

Edited by ingermany

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Man at 64 and 11 months, about to retire, takes out a big mortgage (MEW) against his house.

Government pays the mortgage for him, including the capital repayments, and he gets to keep the money or blow it on fast cars and holidays.

Can anyone see the problem with this?

Yes some old duffer in a fast car. Mostly though it seems to me they buy camper vans. Equally as dangerous. Make them take a test again (and an eye test). Congestion problems cured at a stroke.

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  • 239 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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