Government To Back Interest Payment Deferral Scheme

[Robot Piston]

OK,

It's time I revealed my true identity.

I'm Gordon Brown.

Wotcha HP Crashers.

Fooled you there. You thought I'd let the housing market go bust and make all the hard working people suffer.

Now run along and get yourselves a send income. Save up like everybody else, cut your cloth to suit your purse and I'll see you on the housing ladder.

Okay, in another post you were all 'look at poor me with a troll avatar given unfairly by the mods who stifle contrarian debate'. I sided with you in that post as you offered support for you (wrongheaded) views.

But in this thread I see you are a troll.

You are a sad little wind-up merchant and ICM5P

[IDN]

This post is happening so fast I've done to page 1-22 and had to skip to keep up.

Before you guys think that this is all knew – it’s not.

top post <thumbs up>

what a superb piece!

i'd like to underline the bit about brown doing anything to revive the housing market- he is absolutely desperate- expect more and more desperate measures from this cretin :angry: :angry:

[kilroy]

OK,

It's time I revealed my true identity.

I'm Gordon Brown.

Wotcha HP Crashers.

Fooled you there. You thought I'd let the housing market go bust and make all the hard working people suffer.

Now run along and get yourselves a send income. Save up like everybody else, cut your cloth to suit your purse and I'll see you on the housing ladder.

bond and currency markets will take away the benefit via higher rates on sov debt and weaker currency. When bonds and sterling crash together thw game is up for Gordon Canute. THis attempted chicanery brimgs that day forward, not delays it.

[Pindar]

Deferral of part interest for 2up to years.

This is effectively turning part of their mortgage into a PIK (Payment in Kind) note as far as I can tell. i.e. instead of paying interest on the debt it is simply going to be rolled up. The only way to do this, since it means up to 24 months of arrears, is to add it to the capital owed isn't it?

So someone doing this would end up with a bigger mortgage on a home worth less in 2 years time. If the punter is still then out of work the taxpayer would pay the deferred interest to the bank.

I read it as nothing more than a political attempt to try and keep repo' numbers below the "Tory" repo' numbers of the 90s and obfuscate the impact of Gordon's bust. Buying votes with your money.

Exactly and since the scheme (for which no detail has yet been provided) will be administered by banks, the banks will be obliged to chase people for updates on their employment status. Long before 2 years have gone by and the borrower has got fed up with never being able to go on holiday, eat out, buy nice things etc. etc. they will more than likely find a job.

The bank will then add the deferred interest to the loan and the repayments adjusted upwards. Except in extreme cases, there is practically no risk to the government and if unemployment is seriously that bad in the UK, house prices will be the last of our worries.

[leveller]

You can claim contributions based JSA.

6 months worth anyway I think.

Their computers said no, because i am self employed and have savings

[Converted Lurker]

Deferral of part interest for 2up to years.

This is effectively turning part of their mortgage into a PIK (Payment in Kind) note as far as I can tell. i.e. instead of paying interest on the debt it is simply going to be rolled up. The only way to do this, since it means up to 24 months of arrears, is to add it to the capital owed isn't it?

So someone doing this would end up with a bigger mortgage on a home worth less in 2 years time. If the punter is still then out of work the taxpayer would pay the deferred interest to the bank.

I read it as nothing more than a political attempt to try and keep repo' numbers below the "Tory" repo' numbers of the 90s and obfuscate the impact of Gordon's bust. Buying votes with your money.

3. The deferred payment will be rolled up and added to the principle, with the borrower paying this off when their financial circumstances improve, maintaining an affordable monthly payment by extending the term of the mortgage.

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

[dinsdale]

If you have savings of over £16,000 you get no government help, no benefits of any kind.

Mrs leveller lost job ages ago. I have had no work since September. But because we managed to save more than £16,000 we can not claim job seekers allowance, can not claim income support, can not recieve housing benefit for rent, can not recieve council tax benefit, get no free prescriptions, get no free dental, can not pass go to collect 200, have I missed anything?

You made the mistake of trying to be a responsible human being - you may as well be a dog turd in the eyes of New Labour.

[Sibley]

Okay, in another post you were all 'look at poor me with a troll avatar given unfairly by the mods who stifle contrarian debate'. I sided with you in that post as you offered support for you (wrongheaded) views.

But in this thread I see you are a troll.

You are a sad little wind-up merchant and ICM5P

I think that's a bit unfair.

I tell it like it is and get nothing but abuse from you lot.

I'm not a troll either.

Weeks of your style news ,facts and figures and I take it on the chin.

One yes 1 piece of good news for homeowners and a 25 page shock horror thread.

I'm the only person on here with the guts to have said the government will sort this mess out. Oh and they are.

Deal with it.

[time 2 raise interest rates]

3. The deferred payment will be rolled up and added to the principle, with the borrower paying this off when their financial circumstances improve, maintaining an affordable monthly payment by extending the term of the mortgage.

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

But if you rent and lose your job the Government will pay your rent, them poor old home owners have lost £40,000 in the last year and if they

lose their job they will get f**k all.

[Robot Piston]

Their computers said no, because i am self employed and have savings

So, you have 10's of thousands of ££'s in the bank and are looking for a handout

Your money isn't an obstacle to you being able to claim, it is why you don't need to

Geddit??

[libspero]

I'm the only person on here with the guts to have said the government will sort this mess out. Oh and they are.

Deal with it.

Yes.. looking forward to your spring bounce too of cause Spring Bounce

[Pindar]

I think that's a bit unfair.

I tell it like it is and get nothing but abuse from you lot.

I'm not a troll either.

Weeks of your style news ,facts and figures and I take it on the chin.

One yes 1 piece of good news for homeowners and a 25 page shock horror thread.

I'm the only person on here with the guts to have said the government will sort this mess out. Oh and they are.

Deal with it.

You obviously haven't read the 25 pages of this thread. If you had, you might have a clue that far from sort things out, the government has and will make things far worse. Today's announcement is pure spin, nothing materially different with the new proposals from what is already on offer yet you still don't get it.

Your reliance on the government as a child is reliant on a parent figure is touching. Uncle Gordon must tickle you in special places.

[Converted Lurker]

But if you rent and lose your job the Government will pay your rent, them poor old home owners have lost £40,000 in the last year and if they

lose their job they will get f**k all.

I don't understand you, what do you mean?

[lubby]

Homebuyers can already take out mortgage payment protection insurance but the market is uncompetitive and customers tend to be over-charged, according to a recent report by the Competition Commission.

Why take out insurance when the State will make someone else pay for your mistakes?

...having said that £1bn is a drop in the ocean.

Mistakes??? why mistakes??? i don't understand where you get that?? its more fortune than mistakes isn't it? if someone is made redundant because of the economic down turn, how is that their mistake? If someone buys their first home a high price just before the property crash how is that a mistake? are you saying all us ordinary people out here should have been able to predict this?? I am an average person on average wage in an average house, luckliy for me i bought my house in 98 so i have equity, due to the credit bubble, not due to me me being prudent etc etc.. blah blah blah.... mostly this is all a game of luck really i think. i bought my house for 100k, its now worth 200k.... proably sunk abit it the last few months though, but hey I could repay by mortgage if I had to, If I wanted to but by house today though i expect I'd be forced into a high ltv etc etc.. blah blah blah.... you can't blame the poor indivduals or accuse them of being greedy after all my next door neighbour with 125% paying far more a month than me for living in exactly the same house isn't getting anymore for his koney, just the samje modest terraced hose.... what would we have done if property was priced so highly in our generation? You can't rent forever, what will happen when you reach retirment? people buy hpouses for a home and for security.. they never should have been seeen a 'pension or fincail investment' shame on you people who want to see ordinary people kicked out of their homes.. how would you like it??? and if we are not careful if house prices keep falling more of us could end up in that boat!

booooooooooo to you austrsian .... oh and I heard that in austrai it is legal to take out foreigh currencey mortgages, with all the fx movement isn't that a 'mistake' hahahaha

[BrickandMortar]

The way I see it, goverment is trying to keep mortgage charge onto mortgagees as long as possible even when they are jobless.

Rather than dishing out straight away (well after 13 weeks) mortgage payment relief, what the government is doing is KEEPING the charge on mortgagees by deferring the interest for up to 2 yrs. I would think some of the capital would be paid off by then.

But still, this mean 2 yrs of not having to give away mortgage benefit to homeowners.

Question is what happens after these 2 years? How is this going to be adminitered? Would the interest be compounded or would the new loan value be taken into account (since as I said some of the capital wold have been paid)

Interesting...

[Not Long Now]

booooooooooo to you austrsian .... oh and I heard that in austrai it is legal to take out foreigh currencey mortgages, with all the fx movement isn't that a 'mistake' hahahaha

I think you may have missed the point there to be honest - but I can't be bothered to explain it to you.

[Jim B.]

could this stop the crash?

if the government are going to pay mortgages for up to 2 years , it could stop th HPC

This won't apply to BTL will it?

And I seem to remember the social security paying interest on mortgages for people who lost their job in the last recession, effectively freezing the loan, where as this just delays payment. It didn't stop the last crash.

Everyone has been told for the last few months that houses are grossly overpriced. Who will buy at those sort of prices again?

[Converted Lurker]

I think that's a bit unfair.

I tell it like it is and get nothing but abuse from you lot.

I'm not a troll either.

Weeks of your style news ,facts and figures and I take it on the chin.

One yes 1 piece of good news for homeowners and a 25 page shock horror thread.

I'm the only person on here with the guts to have said the government will sort this mess out. Oh and they are.

Deal with it.

One good aspect of HPC and a thread such as this, is that the more considered and concise analysis/opinion eventually surfaces and rises to the top, such as RK's. On closer inspection the govt has simply put in place a plan to underwrite a 2 year interest only payment holiday for borrowers which will (in true gangsta style) "be added to the principal" at the end of the two years. It hasn't really merited a 25 page thread full of angst and hand wringing, but there you go...

[lubby]

I think you may have missed the point there to be honest - but I can't be bothered to explain it to you.

and you've done exactly the same and ignored my point...

[Pindar]

Mistakes??? why mistakes??? i don't understand where you get that?? its more fortune than mistakes isn't it? if someone is made redundant because of the economic down turn, how is that their mistake? If someone buys their first home a high price just before the property crash how is that a mistake? are you saying all us ordinary people out here should have been able to predict this?? I am an average person on average wage in an average house, luckliy for me i bought my house in 98 so i have equity, due to the credit bubble, not due to me me being prudent etc etc.. blah blah blah.... mostly this is all a game of luck really i think. i bought my house for 100k, its now worth 200k.... proably sunk abit it the last few months though, but hey I could repay by mortgage if I had to, If I wanted to but by house today though i expect I'd be forced into a high ltv etc etc.. blah blah blah.... you can't blame the poor indivduals or accuse them of being greedy after all my next door neighbour with 125% paying far more a month than me for living in exactly the same house isn't getting anymore for his koney, just the samje modest terraced hose.... what would we have done if property was priced so highly in our generation? You can't rent forever, what will happen when you reach retirment? people buy hpouses for a home and for security.. they never should have been seeen a 'pension or fincail investment' shame on you people who want to see ordinary people kicked out of their homes.. how would you like it??? and if we are not careful if house prices keep falling more of us could end up in that boat!

booooooooooo to you austrsian .... oh and I heard that in austrai it is legal to take out foreigh currencey mortgages, with all the fx movement isn't that a 'mistake' hahahaha

You seem to have missed the point. Nobody wants to see anybody else kicked out of their home. The main objection is that successive governments have shown favouritism to homeowners at the expense of those who have accumulated wealth in other ways. If I had £50K equity in my house and I lost my job and the government paid my mortgage it means I'm effectively having different rules applied than a renter who has £50K in savings and loses his/her job. The renter will be required to pay his own way until his savings go below the £16k threshold, yet the mortagee is subsidised from day 1. This is grossly unfair.

[Not Long Now]

One good aspect of HPC and a thread such as this, is that the more considered and concise analysis/opinion eventually surfaces and rises to the top, such as RK's. On closer inspection the govt has simply put in place a plan to underwrite a 2 year interest only payment holiday for borrowers which will (in true gangsta style) "be added to the principal" at the end of the two years. It hasn't really merited a 25 page thread full of angst and hand wringing, but there you go...

....and a proportion of the interest at that.

[It is different this time]

and me whinging about measy 1.76% Barclays ISA rate on other thread. I can see now why we savers are nicely stuffed. The debt party must go on and on and on and on until Brown wins the next election.

The guy is selling our children's future for his own political gain, well I have the power of a single vote and I'll make sure it is put to good use, when it matters, in order to wipe the smug arrogant smile off his face!

Edited December 3, 2008 by It is different this time

[kingsgate]

Nope, just homeowners.

Nobody else in this godforsaken country matters except for f***ing homeowners!!! :angry: :angry:

I commented on this months back: there is safety in being part of the biggest tribe, because, given that politics depends on popular support, policies will tend to be those that will appeal to the majority.

At this stage, morality (ie - who DESERVES help the most) ceases to matter. Its about giving help to the biggest group, so that they will do better, and therefore vote for you......

"Its like that, and that's how it is"

[Guest pioneer31]

When you come up with a plan let me know, im in. Thinking about taking my cash out of the bank, they will give these things more thought if the coffers are dry.

we should all do. If IR's hit zero, as predicted, they're not having my effing money

[leveller]

So, you have 10's of thousands of ££'s in the bank and are looking for a handout

Your money isn't an obstacle to you being able to claim, it is why you don't need to

Geddit??

F u c k n u t

I admit I tried to claim JSA out of interest, and I agree I don't deserve any handouts. I try to stand on my own two feet. fight or fail.

But with your logic, I could have spent it all, got OTT debt, and THEN FREE HANDOUTS?!!

Maybe I am a F u c k n u t for saving and LOOKING AFTER MYSELF, not like banks and £400,000 mortgagers and the rest.

Geddit?? Not really. I worked and save- the saving is an obstacle!!! I worked (or not as I have read of people early 2007 getting mortgage whilst on benefits with no job, google it) and get loads of debt and then default on unsecured debt and get help with unaffordable mortgage- there is no obstacle.