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B W: Homelessness Looms As Mortgage Help Slashed.

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'Homelessness looms as mortgage help slashed':

http://www.benefitsandwork.co.uk/blogs/2010/10/04/homelessness-looms-as-mortgage-help-slashed/

Benefits and Work is hearing from members with cancer and other severe conditions who face enormous financial hardship or homelessness as the coalition slashes the amount paid towards mortgage interest for claimants.

The coalition have reduced the rate at which they pay support for mortgage interest in income support, jobseekers allowance, employment and support allowance and pension credit from 1st October from 6.08% to the Bank of England average, which currently stands at 3.67%.

Interesting comment from 'Connie'...

Soon there will be civil unrest over everything and the whole monetary system will collapse, not just in this country, but all over the globe. It will the most turbulent time in mankinds history.

Whether you are religious or not, I’m afraid we could well be, heading, and I hate to say it, for this great tribulation that the bible speaks of. Worried? You should be! It isn’t going to get any better friends. We are on a downward spiral and this government we have now cannot see it coming at all.

We have a saying where I work. Let it develop!

One wonders if that's 100% guaranteed.

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I don't mean to be utterly horrible, but if you have a possibly terminal very serious illness and cannot work, then shouldn't you tend in the direction of offloading major financial commitments like a mortgage?

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I don't mean to be utterly horrible, but if you have a possibly terminal very serious illness and cannot work, then shouldn't you tend in the direction of offloading major financial commitments like a mortgage?

Do you mean sell the house and then rent by claiming housing benefit instead?

If so, I can't see who this really helps.

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I don't mean to be utterly horrible, but if you have a possibly terminal very serious illness and cannot work, then shouldn't you tend in the direction of offloading major financial commitments like a mortgage?

If you have a family and an insurance policy (that will pay up because you didn't have the terminal illness when you took it out), at least you have the reassurance of knowing that on your death the mortgage will be paid off and your family will have somewhere to live.

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Always hear this same scare nonsense.

How many 'hard working families' who have 'lost' their house* have actually literally ended up sleeping under a bridge ?

Has even ONE family in the entire UK ended up in this way in the last 3 years ? Even ONE single family ?

I doubt it. Simply because if it had happened some paper would have been over it like a rash - and the family in question would have happily accepted the cash in their desparate situation for the story.

* Although it is clearly not their house but that is another point entirely.

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Do you mean sell the house and then rent by claiming housing benefit instead?

If so, I can't see who this really helps.

Given that a lot of the SMI payments go to old people, ill bet theyre mostly houses larger than their needs. Also, i dont think equity is considered. These 'vunerable' people in receipt could be sitting on many thousands of equity, could easily downsize, but have some degree of outstanding mortgage, so the taxpayer comes in to subsidise their lifestyles.

Its not even if 6.1% is that low. Its probably above a good number of accidental landlords yields, they could rent for less if needs be.

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If you have a family and an insurance policy (that will pay up because you didn't have the terminal illness when you took it out), at least you have the reassurance of knowing that on your death the mortgage will be paid off and your family will have somewhere to live.

now that's fair enough, that's being responsible and prepared, but that isn't the same as getting SMI, but I am havign a think...

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Given that a lot of the SMI payments go to old people, ill bet theyre mostly houses larger than their needs. Also, i dont think equity is considered. These 'vunerable' people in receipt could be sitting on many thousands of equity, could easily downsize, but have some degree of outstanding mortgage, so the taxpayer comes in to subsidise their lifestyles.

Its not even if 6.1% is that low. Its probably above a good number of accidental landlords yields, they could rent for less if needs be.

If the house is too big your SMI is restricted or stopped altogether

Meaning of excessive housing costs

23543 Housing costs are excessive where

1 the home, excluding any part which is let, is larger than required by

1.1 the claimant and

1.2 the claimant’s family and

1.3 any non-dependants (including foster children)

having regard to suitable alternative accommodation occupied by households

of the same size or

Excessive housing costs 23544 23548

2. immediate area in which the home is located is more expensive than other

areas in which suitable alternative accommodation exists or

3. costs are more than those for suitable alternative accommodation in the area

Edited by oldsport

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I don't mean to be utterly horrible, but if you have a possibly terminal very serious illness and cannot work, then shouldn't you tend in the direction of offloading major financial commitments like a mortgage?

Yes you're being horrible... owning a house that is worth may times the yearly income is a human right and this is when the rich become 'the poor' and are entitled to help themselves to our wallets in order to rescue their investment.

Seriously, this idea that we have to pay benefits to people who own a house (or have equity in it) is bonkers, they can go and rent like anyone else (or take on another mortgage). Or the govt. could take a share in their homes -- that would be one way of increasing the council house stock over time.

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now that's fair enough, that's being responsible and prepared, but that isn't the same as getting SMI, but I am havign a think...

Thing is, the insurance only pays out if the house is still in your name when you die. If it's been re/possessed, not only will the terminally ill person and his/her family have to rent until he/she dies, the family may have to rent forever after, quite possibly claiming LHA, instead of being able to live in a paid-off house.

You can see why a terminally ill person with a family would want to hang on to the house if at all possible.

Also, in this case, paying SMI for a certain time might avoid having to pay LHA for years (depending on how the family is constituted and the members' ability to earn enough to pay the rent unaided).

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Do you mean sell the house and then rent by claiming housing benefit instead?

If so, I can't see who this really helps.

And if you are under 35 you will have to move into a shared house.

Handy to have housemates if you are dying.

Is this part of the Big Society plan?

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So I take it those who are under 35, and have a mortgage on a flat, they won't be eligible for getting any help with their mortgage?

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Why oh why oh why oh why oh why do people not take out insurance? Do they just think "it'll never happen to me"? I don't understand it, but this seems to be common. As for the poor woman on that site who pays £699 per month on a mortgage, but can barely see or walk - the mind boggles

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So I take it those who are under 35, and have a mortgage on a flat, they won't be eligible for getting any help with their mortgage?

An interesting question. The government have clearly stated that single people under 35 should not expect to live in a house of their own so will they help pay the mortgage interest to keep them in one?

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Why oh why oh why oh why oh why do people not take out insurance? Do they just think "it'll never happen to me"? I don't understand it, but this seems to be common. As for the poor woman on that site who pays £699 per month on a mortgage, but can barely see or walk - the mind boggles

...good point ....mortgage lending should only be permitted if the appropriate insurance is in place ....and should not be sold by the lender .... :rolleyes:

Edited by South Lorne

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...good point ....mortgage lending should only be permitted if the appropriate insurance is in place ....and should not be sold by the lender .... :rolleyes:

Excellent idea. That would really crash the housing market.

Because the insurance companies will normally only cover half your income, and the sum they would pay you would have to cover all your outgoings - rent/mortgage, utilities, other insurances (house, contents, life), other debts. (Then any benefits you might get would have to cover food and medicines.)

How much a month in mortgage payments could most people afford under that scenario, eh?

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Benefits and Work is hearing from members with cancer and other severe conditions who face enormous financial hardship or homelessness as the coalition slashes the amount paid towards mortgage interest for claimants.

The coalition have reduced the rate at which they pay support for mortgage interest in income support, jobseekers allowance, employment and support allowance and pension credit from 1st October from 6.08% to the Bank of England average, which currently stands at 3.67%.

What an emotive load of clap trap.

There are 225,000 SMI claimants. How many of those have severe health conditions ? Those severely ill are hardly representative. Maybe one of them is black too, perhaps we should say this is racially motivated.

I think if someone hasn't long to live, let them stay in their house. It'd be inhumane to move them.

If someone is just "ill" and can't work, that's different.

Edited by exiges

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An interesting question. The government have clearly stated that single people under 35 should not expect to live in a house of their own so will they help pay the mortgage interest to keep them in one?

I take it some would have insurance, which would cover them for what, 12 months of unemployment, but after that? For those that don't have insurance.....Hmmm.. Is unemployment insurance compulsory when taking out a mortgage?

A lot of ppl are going to be left, as they say "right royally buggered"...

Edited by Dave Beans

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Or the govt. could take a share in their homes -- that would be one way of increasing the council house stock over time.

That's not a bad idea, actually. That when you eventually sell, the government-funded percentage of the financial product you used to purchase it would have to be repaid back to the government.

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Indeed, but quite the stick to get people back into work.

..but will there be jobs for them to go into (minimum wage?), let alone to cover a mortgage?

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Yes you're being horrible... owning a house that is worth may times the yearly income is a human right and this is when the rich become 'the poor' and are entitled to help themselves to our wallets in order to rescue their investment.

Seriously, this idea that we have to pay benefits to people who own a house (or have equity in it) is bonkers, they can go and rent like anyone else (or take on another mortgage). Or the govt. could take a share in their homes -- that would be one way of increasing the council house stock over time.

+1tn

The idea that gov't should help ANYONE who has a mortgage while there are people who can't afford to buy, and are being forced to rent as a result, is absurd. It is as if the gov't is making a clear moral judgement that homeowners are superior to renters. I didn't grow up in the UK so maybe that's why I just don't understand this culture of entitlement where people expect to be taken care of to this extent. In most countries around the world this would be unheard of. The response would probably be "but we shouldn't judge ourselves by the standards of the rest of the world, we're better than them". But are we? If a wealthy country wants to call itself civilised then a certain amount of welfare is justified - you can't have people living under bridges and dying of disease and malnutrition. But that's where it should end - after providing healthcare, food and some basic living accommodation. There simply isn't enough money lying around for anything else. And even if the money were there, it could certainly be put to better use.

Edited by frugalboy

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  • 201 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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