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Sledgehead

Cml Wants Mortgage Interest Benefit Doubling Kept

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You know how it is: you take a margined position in £150k of BP shares. Next thing you are out of work, unable to pay the interest, so the government throws you £750 a month, to pay the £600 demanded by your broker. Your missus, who has a part time job earning £6k a year, chucks work in, rather than make you ineligible for government handouts.

Okay, so that only works :

a ) if your investment is property;

b ) if your chancellor is Gordon Darling.

It's all about to change according to the linked article below. The scheme will revert to the pre-crisis regime:

1 ) max margined speculation mortgage £100k (£200 currently);

2 ) waiting period for this benefit 39 weeks (13 currently).

The CML are in a tizz:

‘Lender forbearance has played a crucial role in keeping arrears and possessions in check, and this is reinforced by the certainty for lenders and borrowers of benefit payments, albeit at a reduced rate, within 13 weeks,’ said Michael Coogan, director general of the CML. - http://citywire.co.uk/money/countdown-to-the-spending-review-is-mortgage-interest-benefit-a-cut-too-far/a441640?ref=citywire-money-featured-articles-list

Apparently the changes will save a measly £200m. Well, if it's so damn measly peeps won't mind footing it themselves, will they?

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I can't believe the complete VI self preserving rubbish this nob comes out with.

I have zero respect for the CML they seem to be stuck in 'give me it all today and ****** tomorrow!'mindset.

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Good find. Alas, they are merely speculating that these changes will happen. Would really like to see them happen, but as always, want to see it before i believe it.

Let's devoutly hope this one becomes reality.

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You know how it is: you take a margined position in £150k of BP shares. Next thing you are out of work, unable to pay the interest, so the government throws you £750 a month, to pay the £600 demanded by your broker. Your missus, who has a part time job earning £6k a year, chucks work in, rather than make you ineligible for government handouts.

Okay, so that only works :

a ) if your investment is property;

b ) if your chancellor is Gordon Darling.

It's all about to change according to the linked article below. The scheme will revert to the pre-crisis regime:

1 ) max margined speculation mortgage £100k (£200 currently);

2 ) waiting period for this benefit 39 weeks (13 currently).

The CML are in a tizz:

‘Lender forbearance has played a crucial role in keeping arrears and possessions in check, and this is reinforced by the certainty for lenders and borrowers of benefit payments, albeit at a reduced rate, within 13 weeks,’ said Michael Coogan, director general of the CML. - http://citywire.co.uk/money/countdown-to-the-spending-review-is-mortgage-interest-benefit-a-cut-too-far/a441640?ref=citywire-money-featured-articles-list

Apparently the changes will save a measly £200m. Well, if it's so damn measly peeps won't mind footing it themselves, will they?

I find the whole thing ludicrous that the government gives out money like this.

They ought to operate something like the student loans system where as soon as you are back in work you have to pay everything back in tax.

Mind you, when you consider what a complete f*** up was made of that system maybe it's cheaper just to give them the free money after all.

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Will there be any limit on how long it is paid for? Cos if not, banks are going to give free loans to those about to become pensioners, knowing that they will be able to buy a home based on a gamed benefit.

They just have to get rid of this benefit altogether. There is simply no justification for it given that housing benefit is retained.

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Will there be any limit on how long it is paid for? Cos if not, banks are going to give free loans to those about to become pensioners, knowing that they will be able to buy a home based on a gamed benefit.

They just have to get rid of this benefit altogether. There is simply no justification for it given that housing benefit is retained.

I will be dancing in the streets if this happens. More than anything else this scheme is putting a floor under the housing market.

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Doesn't it just fill you with anger????

The CML wants support for interest repayments? Um, aren't the banks the people who decide when to be lenient?

Don't you just love the banks, Privatise the profits, socialise the loss....

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Don't you just love the banks, Privatise the profits, socialise the loss....

And that is why these banks are always in a "win win" situation. :angry:

And, the tax payer ends up being the loser. :angry:

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You know how it is: you take a margined position in £150k of BP shares. Next thing you are out of work, unable to pay the interest, so the government throws you £750 a month, to pay the £600 demanded by your broker. Your missus, who has a part time job earning £6k a year, chucks work in, rather than make you ineligible for government handouts.

Okay, so that only works :

a ) if your investment is property;

b ) if your chancellor is Gordon Darling.

It's all about to change according to the linked article below. The scheme will revert to the pre-crisis regime:

1 ) max margined speculation mortgage £100k (£200 currently);

2 ) waiting period for this benefit 39 weeks (13 currently).

The CML are in a tizz:

‘Lender forbearance has played a crucial role in keeping arrears and possessions in check, and this is reinforced by the certainty for lenders and borrowers of benefit payments, albeit at a reduced rate, within 13 weeks,’ said Michael Coogan, director general of the CML. - http://citywire.co.uk/money/countdown-to-the-spending-review-is-mortgage-interest-benefit-a-cut-too-far/a441640?ref=citywire-money-featured-articles-list

Apparently the changes will save a measly £200m. Well, if it's so damn measly peeps won't mind footing it themselves, will they?

Important post.

That article accepts readers' comments: http://citywire.co.uk/money/countdown-to-the-spending-review-is-mortgage-interest-benefit-a-cut-too-far/a441640?ref=citywire-money-featured-articles-list

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I find the whole thing ludicrous that the government gives out money like this.

They ought to operate something like the student loans system where as soon as you are back in work you have to pay everything back in tax.

Mind you, when you consider what a complete f*** up was made of that system maybe it's cheaper just to give them the free money after all.

However much this leaves a bad taste in the mouth, when you think about it, this isn't any fairer than paying someone's rent for them when they're out of work in the form of LHA. The one unfair advantage mortgagors have over renters is that they're not forced to downsize or only receive enough LHA for accomodation they are entitled to.

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In addition to the above, this is really no different to the BTL brigade that prey on LHA recipents knowing full well that the tax payer will foot the monthly rent than the banks giving out mortgages to anyone with pulse, knowing full well the tax payer once again will foot the bill for SMI.

The whole system needs fixing starting from scratch!

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However much this leaves a bad taste in the mouth, when you think about it, this isn't any fairer than paying someone's rent for them when they're out of work in the form of LHA. The one unfair advantage mortgagors have over renters is that they're not forced to downsize or only receive enough LHA for accomodation they are entitled to.

You raise a valid point and an intersting slant.

Recentlt Cameron has suggested council tennants who can afford to buy should not be entitled to council houses. This view was given political cover in the Telegraph by a story about a £1000 a night Stringfellows stripper who still lived in a council house.

However, if council tennants who can afford to buy should be moved on (to owner-occupiership), surely, the quid pro quo must be that owner-occupiers who cannot afford to buy should be moved 'back' to council tenancy (and not propped up by the government). ;)

That of course suggests council housing building should not be scaled back. ;);)

In fact, it suggests it should be stepped up. ;););)

Okay, I'll stop here, cos my winky eye is getting tired.

Edited by Sledgehead

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You raise a valid point and an intersting slant.

Recentlt Cameron has suggested council tennants who can afford to buy should not be entitled to council houses. This view was given political cover in the Telegraph by a story about a £1000 a night Stringfellows stripper who still lived in a council house.

However, if council tennants who can afford to buy should be moved on (to owner-occupiership), surely, the quid pro quo must be that owner-occupiers who cannot afford to buy should be moved 'back' to council tenancy (and not propped up by the government). ;)

That of course suggests council housing building should not be scaled back. ;);)

In fact, it suggests it should be stepped up. ;););)

Okay, I'll stop here, cos my winky eye is getting tired.

Sledgehead,

your musings illustrate exactly why the state shouldnt intervene in housing. They try to give to the most needy, but end up giving to those that game the system best.

And rather than have an ever growing and massive rule book about who should be doing what for whom based on income and outgoings and stuff, just forget it all and leave it all to the market. Just sell off all council houses to the highest bidder.

Then that rich bird from Stringfellows can choose how much she wants to spend on housing. And that bloke who can no longer afford his home cos he stretched too far has to face the consequences of his decisions, and downsize more aggresively than if he had saved harder before hand and bought somewhere less expensive on credit.

I am still horrified to think that the rules for SMI actually allow banks to lend to people just about to retire, facing a drop in income, knowing that after 39 weeks the state will pay their mortgage indefinitely, well at least whilst they are still alive.

Only a market free of government interference ends all of this nonsense.

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I am still horrified to think that the rules for SMI actually allow banks to lend to people just about to retire, facing a drop in income, knowing that after 39 weeks the state will pay their mortgage indefinitely, well at least whilst they are still alive.

Only a market free of government interference ends all of this nonsense.

We are all horrified.

I am feeling much more confident now the rate of increase of the deficit will slow sharply because whilst in isolation this particular stupidity is minor, there are 100s of stupidities that the Tories are saying "nuff" too.

Which is a good thing. Once the world markets see that the UK is changed the direction of travel and will eventualy clear the deficit and even perhaps some of the debt, capital will start to flow in.

I know its horrible if kids are involved, but what we really, really need is for hundreds of borrowers to be very visibly turfed out of the properties they are squatting in.

It will shock, horrify and untimately re-align everyone to economic reality. "OMG - 'they' will let it happen"

(And crash house prices)

Edited by xux42

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Sledgehead,

your musings illustrate exactly why the state shouldnt intervene in housing. ...

Only a market free of government interference ends all of this nonsense.

Absolutely. All that talk of firemen not being able to afford to live in London w/o HB had me screaming at the goggly-box: "let's just see what rents look like w/o all these gubmint props!"

... and thence of course what London flat prices would look like as a consequence.

But the reality is gubmint loves us to be totally tethered to their systems. They love owner occupiers most cos we need them to confirm our title to our assets. And they love debtors cos the banks then need the government to confirm title and the credit contracts. All that dependence and need makes the goverment a "friend indeed" to most, no matter what taxes are levied upon them.

If however you don't need the apparatus of the state to confer title - let's say you have a bar of yellow shiny stuff - you might well decide you have nothing to lose by traipsing beligerantly through parliament square with a banner declaring "get the b'strds out!"

It's all about power in the end.

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However much this leaves a bad taste in the mouth, when you think about it, this isn't any fairer than paying someone's rent for them when they're out of work in the form of LHA.

These two would be roughly equivalent if the homeowner owner became a tenant as a result of the support.

Edited by Stars

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It's all about to change according to the linked article below. The scheme will revert to the pre-crisis regime:

1 ) max margined speculation mortgage £100k (£200 currently);

2 ) waiting period for this benefit 39 weeks (13 currently).

If true, I'll be astounded, amazed and elated.

Edited by exiges

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Sledgehead,

your musings illustrate exactly why the state shouldnt intervene in housing. They try to give to the most needy, but end up giving to those that game the system best.

And rather than have an ever growing and massive rule book about who should be doing what for whom based on income and outgoings and stuff, just forget it all and leave it all to the market. Just sell off all council houses to the highest bidder.

OK, but while you're at it with your logic, lets do the same with the NHS, Ambulance Service, Fire Service etc. Can't have one without the other now can we?

It's not hard to see where my thoughts on all this are by my signature. Having a roof over your head and access to medical services should be a basic right for us in the UK and not left in the hands of a minority of private rackateers.

We need to build far more council houses, and ones that cannot be subsequently bought with stupid RTB! :angry:

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You know how it is: you take a margined position in £150k of BP shares. Next thing you are out of work, unable to pay the interest, so the government throws you £750 a month, to pay the £600 demanded by your broker. Your missus, who has a part time job earning £6k a year, chucks work in, rather than make you ineligible for government handouts.

Cool!

I'll jack in work and spread bet for a living.

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  • 238 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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