Smi Cut From Tomorrow Morning.

[Pent Up]

Smi cut kicks in tomorrow. From 6.08% down to 3.6% hopefully adds some repos to the mix.

Also from January 5th those who have been in recipt for two years will begin having it removed altogether

http://www.mirror.co.uk/advice/money/2010/09/29/mortgage-timebomb-as-condem-cuts-to-lifeline-leave-100-000-at-risk-115875-22595220/

Many risk being thrown on the streets as big changes from this Friday suddenly leave claimants - including thousands of pensioners - with repayment shortfalls of up to 40%.

The shake-up is the result of Condem attempts to tackle problems with the Support for Mortgage Interest benefit.

For someone with a typical £150,000 mortgage, a 40% shortfall will mean finding an extra £300 a month. That's the nightmare facing mum-of-three Diane Jones, who says a big cut will plunge her family into crisis.

...

Meanwhile, another 110,000 households won't get enough help, with 15,000 facing shortfalls of up to 40%.

[dances with sheeple]

Smi cut kicks in tomorrow. From 6.08% down to 3.6% hopefully adds some repos to the mix.

Also from January 5th those who have been in recipt for two years will begin having it removed altogether

http://www.mirror.co...15875-22595220/

Many risk being thrown on the streets as big changes from this Friday suddenly leave claimants - including thousands of pensioners - with repayment shortfalls of up to 40%.

The shake-up is the result of Condem attempts to tackle problems with the Support for Mortgage Interest benefit.

For someone with a typical £150,000 mortgage, a 40% shortfall will mean finding an extra £300 a month. That's the nightmare facing mum-of-three Diane Jones, who says a big cut will plunge her family into crisis.

...

Meanwhile, another 110,000 households won't get enough help, with 15,000 facing shortfalls of up to 40%.

150k mortgage was considered peanuts during the boom

[campervanman]

Smi cut kicks in tomorrow. From 6.08% down to 3.6% hopefully adds some repos to the mix.

Also from January 5th those who have been in recipt for two years will begin having it removed altogether

http://www.mirror.co.uk/advice/money/2010/09/29/mortgage-timebomb-as-condem-cuts-to-lifeline-leave-100-000-at-risk-115875-22595220/

Many risk being thrown on the streets as big changes from this Friday suddenly leave claimants - including thousands of pensioners - with repayment shortfalls of up to 40%.

The shake-up is the result of Condem attempts to tackle problems with the Support for Mortgage Interest benefit.

For someone with a typical £150,000 mortgage, a 40% shortfall will mean finding an extra £300 a month. That's the nightmare facing mum-of-three Diane Jones, who says a big cut will plunge her family into crisis.

...

Meanwhile, another 110,000 households won't get enough help, with 15,000 facing shortfalls of up to 40%.

110,000 households wn't get enough help? Who's providing the help? Who is helping the helpers?

[bomberbrown]

Not only have the vast majority of claimants had all their mortgage interest paid, many are getting extra and reducing the size of their loan.

As a tax payer and a potential FTB, I'm glad I could be of assistance.*

* NOT!

[interestrateripoff]

Is that a clock ticking?

[OnlyMe]

For someone with a typical £150,000 mortgage, a 40% shortfall will mean finding an extra £300 a month. That's the nightmare facing mum-of-three Diane Jones, who says a big cut will plunge her family into crisis.

Downsize you greedy cow, what, you can't downsize because it still costs too much to house your children? Whose fault is that then - yours, for being part of the bidding process in the first place.

Edited September 30, 2010 by OnlyMe

[exiges]

Many risk being thrown on the streets as big changes from this Friday suddenly leave claimants - including thousands of pensioners - with repayment shortfalls of up to 40%.

Yep, it makes a good "won't someone think of the poor pensioners" headline, but sadly by the governments own figures 50% of claimaints will still have their mortgage paid 100% (and will still receive capital overpayments) after the rate reduction, and 93% of claimants will receive more than 60% of the interest cost.

The average overpayment for 65+yr olds is only £27 a week, compared to £100 for 25-29yr olds.

Source:

Support for Mortgage Interest

This reduction won't help the HPC at all, it'll just slow the amazing rate that clamaints were having their capital repaid.

Edited September 30, 2010 by exiges

[TeddyBear]

This reduction won't help the HPC at all, it'll just slow the amazing rate that clamaints were having their capital repaid.

There are a few people on the MSE thread (pinned in benefits section) saying they will have to try and sell now due to the shortfall

[grey shark]

http://www.mirror.co.uk/advice/money/2010/09/29/mortgage-timebomb-as-condem-cuts-to-lifeline-leave-100-000-at-risk-115875-22595220/

That's the nightmare facing mum-of-three Diane Jones, who says a big cut will plunge her family into crisis.

The Jones' plight is made worse by having Northern Rock's controversial Together mortgage, which allowed them to borrow the cost of their home, plus extra for improvements - £130,000 in total. ]So their payment of £286 a month only covers the mortgage - not the £501 required. The family is trying to find a way of staying in the property and is exploring the option of becoming tenants in the house under a rental deal. But the transaction has stalled because of structural issues. If the deal doesn't go through, the family faces repossession.

Together mortgage , negative equity , property has structural problems ....... welcome to the fallout of the boom mrs Jones ....... enjoy it

Edited September 30, 2010 by grey shark

[rented]

Also from January 5th those who have been in recipt for two years will begin having it removed altogether

Iirc wasn't that only for JSA claimants i.e. a tiny percentage of those actually claiming?

Edited September 30, 2010 by rented

[Guest_James Toney_*]

good news, should see a few repos

[LivingWithTheInlaws]

He he. It's a together mortage when you take it out but fall behind on the repayments and you're on your own!

[Kyoto]

"Many risk being thrown on the streets"

So emotive.

THEY can't pay the mortgage that THEY signed up for.

They have had this mortgage PAID FOR THEM, in many cases above and beyond the rate of interest.

They will STILL get most and often ALL of the interest paid.

The tax payer is allowing them to live, in their own house, for FREE, at the expense of "hard working families" who can actually afford to pay.

My heart bleeds. They've ridden the gravy train for long enough so quit whining and get a job!

Edited September 30, 2010 by Kyoto

[GordonBrownSpentMyFuture]

good news, should see a few repos

+1

Turf them out if they can't pay the mortgage. There's always private rental. Being a second class citizen isn't too bad once you get used to it.

Plus, the deluge of "To Let" signs outside vacant BTL properties suggests they'll be spoilt for choice and probably able to haggle for cheaper rent.

See, not all bad. Why all the doom and gloom...?

[General Congreve]

"Many risk being thrown on the streets"

So emotive.

THEY can't pay the mortgage that THEY signed up for.

They have had this mortgage PAID FOR THEM, in many cases above and beyond the rate of interest.

They will STILL get most and often ALL of the interest paid.

The tax payer is allowing them to live, in their own house, for FREE, at the expense of "hard working families" who can actually afford to pay.

My heart bleeds. They've ridden the gravy train for long enough so quit whining and get a job!

Don't fret, it's good news, just more debt on the government debt tab, which us tax payers can never hope to repay. Sovereign debt is the key to the golden kingdom!

[Reck B]

Is that a clock ticking?

*Puts on italian accent*

No! thatta clock ees no ticking. ees stuck onna de quattro.

[bomberbrown]

The Jones' plight is made worse by having Northern Rock's controversial Together mortgage, which allowed them to borrow the cost of their home, plus extra for improvements - £130,000 in total. ]So their payment of £286 a month only covers the mortgage - not the £501 required. The family is trying to find a way of staying in the property and is exploring the option of becoming tenants in the house under a rental deal. But the transaction has stalled because of structural issues. If the deal doesn't go through, the family faces repossession.

Together mortgage , negative equity , property has structural problems ....... welcome to the fallout of the boom mrs Jones ....... enjoy it

Stringing Adam Applegarth up by the nearest lampost is even too good for him. But what do we do...? We give him a £1M golden handshake and a £300k per year pension.

[patient one]

Stringing Adam Applegarth up by the nearest lampost is even too good for him. But what do we do...? We give him a £1M golden handshake and a £300k per year pension.

Of course I have sympathy with some of those who have defaulted on their mortgage but sorry I do struggle with all the moaning going on- many have been profiting whilst this scheme was paying out at the higher level. I CHOSE not to buy a house because it was unaffordable. It is pretty galling to watch those who made the CHOICE to borrow > 100% of their homes equity complain about the government now not paying them enough.