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tuggybear

New Insurance Scheme Could Help Homes At Risk Of Repo

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The growing number of home-owners at risk of repossession could be helped by a new form of insurance which would cover ten months of complete mortgage payments, should they face unemployment, sickness or have an accident.

A report published by the Joseph Rowntree Foundation recommends implementation of the Sustainable Home Ownership Partnership (SHOP) scheme, a partnership between Government, lenders and borrowers, providing a much cheaper form of insurance than similar private insurance products currently available.

Cont.

Link : http://www.housingnews.co.uk/enews/display...rticleID=157152

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But people used to have to take out mortgage protection didn't they? Or was it always optional?

And this scheme wants the tax payer to pay 25% of it.

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But will it cover those people not made unemployed or sick but were just bloody stupid getting mortgages they cant afford?

Like the self employed builder I know with many many kids and a £200,000 interest only mortgage (of course obtained using dodgy payslips).

Like the 125% lot who will not be able to remortgage when their two years is up and they are put on the lender's SVR?

I think not

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Guest DissipatedYouthIsValuable
The growing number of home-owners at risk of repossession could be helped by a new form of insurance which would cover ten months of complete mortgage payments, should they face unemployment, sickness or have an accident.

A report published by the Joseph Rowntree Foundation recommends implementation of the Sustainable Home Ownership Partnership (SHOP) scheme, a partnership between Government, lenders and borrowers, providing a much cheaper form of insurance than similar private insurance products currently available.

Cont.

Link : http://www.housingnews.co.uk/enews/display...rticleID=157152

I'll tell you what, how about I just pay 100% income tax and the government can subsidise any dopey **** so that they can live to the artificial standard to which they have become accustomed. I'll just forage in my lunchbreak.

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When they stopped paying interest only if you signed on, they did expect you to take out an insurance policy. However, these don't always work. I've never been able to get one or it's not been worthwhile as it wouldn't pay out.

Examples:

1] You will only get accepted if you are in permanent employment; yet many jobs these days are contracts.

2] It will only pay out when you've been permanently employed for the six months prior to a claim, so if you had been laid off for a month before starting a new job, you'd still not be covered for six months

3] While unemployed you can't do temporary work because once the insurance has started paying out, if you do a temporary job, for say 2 months, then when that finishes your insurance isn't paying out and you no longer have 6 months of permanent employment. So you'd have to stay unemployed and wait only for a permanent job while the insurance is paying out.

When I got my mortgage I was a contractor, the insurance wouldn't have paid out because that wasn't a permanent job.

So, yes, you should have insurance, but like most insurances, when you read the small print you don't get a pay out.

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  • 293 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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