Monday, January 5, 2009

Another day, another desperate throw of the dice (16)

State help for homeowners widened

Yup, they are still doing their best to make sure that the priced out generation stays priced out ... "State benefits for homeowners struggling to pay their mortgage after losing their jobs are to be paid more quickly and to more people. The government's Support for Mortgage Interest benefit has been extended to include mortgages up to £200,000 - double the previous limit. The waiting period to qualify has also been reduced by two-thirds to 13 weeks. Eight UK lenders have joined a separate scheme allowing mortgage holders to defer part of their interest payments."

Posted by mark wadsworth @ 12:44 PM (2227 views)
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27 thoughts on “Another day, another desperate throw of the dice (16)

  • Scroungers.

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  • This kind of annoys me because: On one hand they are helping people to stay in their homes (has to be done – but in this way?) and on the other they are bailing out banks indirectly through the customer as is the norm. This means the customer is further endebted (albeit in desperation) and the business which made and allowed a suicidal business plan is fully compensated. It’s Nuts!!!! If anyone is going to pay,shouldn’t it at least be both sides?

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  • The goverments obsession with helping so called “homeowners” ( heavily indebted morgage holders would be a better description) is a disgrace.What about those of us in the private rental sector? Will there be any help for private tenants when we lose our jobs?
    Or does Gordon Brown only equate heavily morgaged ( wreckless borrowers) as “hard working families”?

    The truth is that zaNU labour really couldn’t care less about the people.
    All this “help” and new iniatives that they keep on announcing are really just to try and save their miracle economy, the banking system and most importantly of all, their own skins.

    We need an election.

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  • need-a-crash says:

    I think as a tenant, if you become unemployed you can get the DSS to pay your rent.

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  • I don’t remember agreeing to fund labours next election with my taxes.

    I thought that is was a choice! Democracy? LOL

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  • flintster1994 says:

    sold out,

    Who would you vote for? As far as I can see there are no alternatives; just new faces.

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  • The brash complexities of Moral Hazard have not even began.

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  • “I think as a tenant, if you become unemployed you can get the DSS to pay your rent”

    True. Unless you have over £16,000 in savings. For example, if you were saving to buy … a house.

    Of course, bearing in mind the top notch rates of return for savers right now, and the rock-solid reputation of our illustrious and hard-working banks, one would obviously keep that money in the bank ready to be means tested by the benefits agency rather than stashed away as cash.

    On a more serious note however, what’s to stop someone being made redundant from converting their savings into gold and then claiming they have no savings, only assets

    ?

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  • 8. paul

    Assets are taken into account if you divulge.

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  • I dont know about cash in a safe at home!

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  • bertywooster says:

    The government is notified of all gold transactions including the I.D. of the purchaser (not jewellery though). Interestingly a little tax office in Wales used to be notified, by all the banks/building societies, of all interest receipts over a prescribed limit and this info was sent to your general collection district. Looking back I suppose it was the trial run for a surveillance society. Nuff said it’s a Treasury secret, section 2 and all that…

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  • @11 BertyW – yes you’re right about the govt being informed of all Gold transactions, but I wonder if you were to then say that you lost it all in a poker game that lasted so long, you can’t now remember who was there, how they could prove you’re lying?

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  • Enjoy, the cashless society is slowly materialising.

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  • fahrenheit451 says:

    Like the idea of gold … now where can I store all those golden wrappers of the children’s chocolate coins … I know the goldfish bowl, nobody would believe it was real and it would be well disguised as a fish !!! And I could use them as (Fish &) “chips” in a Poker game, even better, yum yum …

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  • Missingteddybear says:

    I currently give my money to save to my boyfriend (we don’t live together – he owns, I rent and we both earn the London average) as I would like to have children in a couple of years time and will need my rent covering if I am unable to work full-time. The current tax credit system which discriminates against married couples means that until the child is five and I can go back to work full-time, we are not able to live together and marry (much as we’d like to). Even if the tories get in and allow me to transfer my allowance to him – that’s £21 a week, big deal!

    If you suspect you’re going to need housing benefit, the best thing to do is to save in somebody else’s name (whom you trust and who isn’t your partner). Handing it over in cash monthly isn’t going to look sus as a huge 50K transfer would once you’re not working

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  • Relax… people!!! This is great news!

    We want more people to get more indebted to fund the money supply – and those loans need to be credible so banks can open the taps! Stop. Please STOP trying to blow the cover on those loans.
    Of course a lot of folks are foolish to take them out. But THEY are sustaining the economy. And who says housing can not sustain an economy? Our house builders could export kit houses like the Nordics. Just don’t talk down the economy so they can buy time to conjure their magic . Not now at least!

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  • I think the benefit should be somehow tapered to take into account whether you took out too big a loan. ie if you took out a mortgage on 5 x salary and then remortgaged, you should not get as much help as someone more sensible…

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  • [email protected]

    Who would i vote for?
    The Tories of course,not because i am a tory supporter but because it may get rid of this shambles.
    I agree the choice is not great, they are all politicians.

    The situation we find ourselves in at the moment is that we have a government that is simply making short term policy to try and get themselves re elected.All there policies are only going to prolong the agony for all of us but the greatest worry i have is that Brown the incompetant is going to really seriously damage our long term future.

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  • bertywooster says:

    [email protected] it’s a good point but one that has been made by many a crook. The investigation would be long, detailed and traumatic. Utimately if they could not prove fraud they would say we do not believe you. By then your house would be history. If you go to court you would still have to prove you case. Catch 22….

    There was a case where a crook had a secret bank account. The revenue interviewed him, under caution and in the presence of his accountant. He was told they knew about a secret bank account but not the name of the bank, so he decided to come clean and declare the account. Unfortunately he thought they were referring to another secret bank account and declared that one. Stupidity and the criminal classes what fun.

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  • 15. maddison

    Housing benifit tenants are capped so this does make sense.

    The problem is, if you are made redundant as a tenant you may be served notice by your landlord.

    No DHSS. I would like to see some protection given in this respect.

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  • This is not as “bad” as you might think. If the mortgage is secured on 2 people (tennants in common) and one loses their job then they wont be covered. Expect a backlash on that! Gordy You cant even please ALL the Mortgage owners ALL the time! – Sorry just read the article and it does mention that too – “However, the help will not be available to couples with joint mortgages in a situation where one has been made redundant”

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  • it_is_going_with_a_bang says:

    DSS pay your rent?

    Firstly, how many decent landlords accept DSS?
    Then there is the issue of getting it agreed.
    Let alone how much they will give you.
    The last time I looked they didnt ‘award’ you the equivalent of £200,000 interest payments.
    That interest could well be at 7.5 % – thats £1,250 a month. Now I can’t see the DSS giving someone that to find a place to rent.

    This is all about buying votes with taxpayers money and pretty much nothing else.

    I take onboard 19. Techieman’s point though, as alot of mortgages will have to have been shared just to reach the dizzy heights of the recent years. Probably 6 x times lending of 2 wages. Which is more like 12x lending when it comes down to one person’s ability to pay…

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  • If i do lose my job and will not be getting any “handout” from the Government, i guess i will have to just default on my rent.
    Anyone know how long it takes before they can evict me and what other implications there are?
    If i am going down, then my BTL landlord is too i am afraid.

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  • This puts the tedious invective about scrounging scum in it’s true light. The reality is that when the chips are down, no-one is averse to taking a bit of taxpayer’s money. As unemployment beckons for many, I dare say prejudices and assumptions will be challenged. Waving the Daily Mail in the air doesn’t feed the kids.

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  • Things are going to get very ugly. I know it!

    I can’t think of many people that are not being adversly effected by this downturn, that is feeding on itself more rapidly by the week.

    Something’s going to give.

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  • What I want to know is if you have mewd and have an x5 plus numerous 5* holidays under your belt which leaves you with a massive mortgage are you eligible for these handouts from us prudent savers.

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  • To be fair, Shipbuilder, people who pay tax continually and do not scrounge are right to expect some help from the government when things do get difficult. Tax paying is a safety net for those that need it, when they need it, so this seems like entirely fair behaviour to me. It is continual non-needy scroungers who need to be removed from the government teat.

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