Jump to content
House Price Crash Forum
Sign in to follow this  
pobby

Please Jog My Memory

Recommended Posts

Am I right in thinking that when houses were being repossed in the last crash you got some help from the government.I seem to remember that they would pay your interest bit of the mortgage up to 120k for a while.Any one rememder?

Share this post


Link to post
Share on other sites

Am I right in thinking that when houses were being repossed in the last crash you got some help from the government.I seem to remember that they would pay your interest bit of the mortgage up to 120k for a while.Any one rememder?

I;m sure I remember a story of one ex city trader having the interest on a huge mortgage being paid, so not sure of the exact limits. But yes, no income - all interest paid right from the start of unemployment.

Now - limits (and checks on any other savings) and a 9 month wait I believe.

Edited by OnlyMe

Share this post


Link to post
Share on other sites

They will now only pay the interest on the first 100k of a mortgage.

This rule came into force in about 1995, it used to be an unlimited amount before that.

Edited by Neil D Possitt

Share this post


Link to post
Share on other sites

They will now only pay the interest on the first 100k of a mortgage.

This rule came into force in about 1995, it used to be an unlimited amount before that.

Even so when it goes belly up @ say 5.25% thats a fair old bit of dosh the tax payer is gonna have to find.

Share this post


Link to post
Share on other sites

Even so when it goes belly up @ say 5.25% thats a fair old bit of dosh the tax payer is gonna have to find.

What will happen to someone who's mew'ed - Will the Tax payer end up paying their cc debts? i.e. the interest on. :unsure:

Share this post


Link to post
Share on other sites

What will happen to someone who's mew'ed - Will the Tax payer end up paying their cc debts? i.e. the interest on. :unsure:

never occured to me that mew issue.I cant remember wether it was popular before the last crash.

Share this post


Link to post
Share on other sites

What will happen to someone who's mew'ed - Will the Tax payer end up paying their cc debts? i.e. the interest on. :unsure:

It they can prove they spent the MEW on "home improvements", yes. Otherwise, no.

Also, anyone who still has a mortgage dating from before the rules changed in the mid 90's will still get the interest paid from the first day of unemployment. The change to a 9 month delay didn't apply to existing mortgages, only new mortgages taken out from that point onwards.

Share this post


Link to post
Share on other sites

The limit is £100,000 and nothing is paid for the first 9 months after you claim unemployment benefit or income support.

Unless you are on incapacity benefit the odds of repossession beginning before it starts being paid is 100% so you better hope you have an income insurance policy.

Share this post


Link to post
Share on other sites

As far as I am aware the scheme does not pay anything other than the purchase of the house...so no, it will not pay mew that has been used to buy holiday homes and 4x4s. The limit is £100K and it pays the interest only.

They allow "essential repairs & improvements" to be included in the loan;

Guide to Income Support

....but not 4x4s etc !

Share this post


Link to post
Share on other sites

never occured to me that mew issue.I cant remember wether it was popular before the last crash.

As far as I am aware the scheme does not pay anything other than the purchase of the house...so no, it will not pay mew that has been used to buy holiday homes and 4x4s. The limit is £100K and it pays the interest only.

This is not a scheme designed to help people avoid repo during a crash. The scheme is ongoing and pays the interest on any home up to £100K if that person is on income support or unemployment benefit.

If we did have a crash I wouldn't put it past Gordon to increase this limit.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 333 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.