Monday, December 1, 2008

Happy Advent

Struggling families given six-month reprieve as RBS delays repossessions

Borrowers who fail to keep up with their mortgage repayments will be given a six-month breathing space under a plan due to be announced today by Royal Bank of Scotland. RBS, which owns NatWest, is expected to promise not to repossess homes from any customers for 6 months from the date when they first admit that they have a problem, The Times has learnt.

Posted by gardeniadotnet @ 12:04 AM (888 views)
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9 thoughts on “Happy Advent

  • Repossession is a terrible thing n’all that, but isn’t this the first example of the government taking direct action to manipulate the housing market?

    Oh. Hang on – they’ve done that with interest rates all along …

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  • gardeniadotnet says:

    The thumb is trembling on the Hyperinflation Hosepipe.

    LIQUIDATION HERE WE COME!!!!!

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  • Every synthetic attempt to shore up the housing market will just cause additional pressure to build at another point. So they don’t repossess for 3 to 6 months depending on which lender is being lent on. Are market conditions likely to improve so much in 6 months time that only a few will end up repossessed? Is the job market going to improve? Are the banks going to be back lending 5 x salary? Are wages going to improve? Is the UK psyche suddenly going to realise that spending like there’s no tomorrow and paying 100,000s of pounds more for property than necessary is a really sound financial plan after all? I don’t think so. Sentiment has changed and it’ll take years to change back. I would imagine there will be a massive spike of repossessions in the latter half of 2009 as people will not have been able to get out of the mire or there are going to be some homeowners selling their homes for practically any sum, just to use the 6 month window to see off their mortgage.

    Whatever happens I feel sure the law of unintended circumstances will be invoked!!!

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  • little professor says:

    HM Government now own 57% of RBS, so of course this was coming. No need to pay your mortgage for six months – great stuff!

    Presumably they’ll also go for loan alterations as in the US, where Fannie Mae/Freddie Mac loans falling into arrears will have a proportion of the capital written off, as well as having the interest rate lowered so that the monthly repayments are no more than 38% of take-home pay after expenses.

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  • I have been priced out since 2000.
    Cannot afford a bedsit.
    Been forced to rent.
    Now my taxes will be increased, [Circa £280 PA?] to allow people facing negative equity a stay of ‘execution’ for 6 months.
    Also, I am facing tax increases to bail out the banks who lent them the money.
    Thankyou very much New Labour

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  • The interest will simply be rolled up for another 6 months so delaying the inevitable with the ‘homeowner’ in arrears actually being in a worse position at the end of the exrcise. But what is most important is being ‘seen’ to be doing something.

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  • last_days_of_disco says:

    @renting2

    Exactly, its all a ploy to get elected again. Its classic Blairite stuff, say you are going to do something but it will only come into force in the future (say 2 years or 5 years — like the 10p tax thing). Say you are going to do something really bad when you want something else and then suggest the thing you really want as a compromise. I am sooooo tired of this bunch of liars.

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  • last_days_of_disco said…
    its all a ploy to get elected again

    my take on this, is that it’s a ploy to keep repossessions off the market until after the next election – next Spring…

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  • Wow – who’d want to be a shareholder in RBS right now?

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