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Joseph Rowntree Foundation

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The Sustainable Home-Ownership Partnership (SHOP)

SHOP would be a levy system designed to provide pooled funding that could be accessed by borrowers in order to manage clearly delineated circumstances that have the potential to lead to mortgage arrears and possessions. It is intended to assist homeowners with mortgages, including shared owners, but not owners of second homes or private landlords. It would involve the rolling up of ISMI and private insurance into a single scheme to which lenders, government and borrowers would contribute.

SHOP would provide the following protection:

Non-means tested payment of actual mortgage capital and interest payments from the beginning of the third until the end of the twelfth month following the occurrence of a particular 'designated' risk, such as unemployment, failure of selfemployment, accident or sickness, and means tested assistance thereafter if the unemployment, sickness, etc. continues.

Means tested assistance with mortgage capital and interest payments from the third month, and indefinitely if the loss of income arises from a non-designated risk.

During the first two months, lenders would be expected to exercise forbearance.


Edited by Bootsox

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The safety net would be strengthened considerably by introducing a Sustainable Home-Ownership Partnership (SHOP) scheme, which would be a fund to which borrowers, lenders and the government taxpayers who don't have mortgages would all contribute. It would replace the state safety net and private insurance for all new home-owners and people who switch their mortgages.

Roll up, roll up, get your moral hazard here...

Edited by huw

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  • 295 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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