Councils "should help struggling homeowners"
Councils "should help struggling homeowners"
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Discussion

gingerpaul

Original Poster:

2,929 posts

274 months

Saturday 14th June 2008
quotequote all
Think-tank in article said:
...local authorities should offer entire or part mortgages at below market rate to those struggling to meet mortgage repayments, facing repossession, or first-time buyers unable to get a foothold on the market.
Hasn't the government got enough exposure in this market with NR without this on top? What are the chances of something like this coming in?

News article link

Edited to make the link work.

Edited by gingerpaul on Saturday 14th June 22:08


And again. rolleyes

Edited by gingerpaul on Saturday 14th June 22:10

bogie

17,100 posts

303 months

Saturday 14th June 2008
quotequote all
I hope not at all...why should local authorities use our (taxpayers) money to fund those people !...theres a rental market, if you are genuinely hard up then theres housing benefit...if we carry on like that in this country in 20 years im sure we will have like 1M people working in this country and paying tax and the remainder on some sort of hand-out funded by them frown

Ordinary Bloke

4,559 posts

229 months

Saturday 14th June 2008
quotequote all
bogie said:
I hope not at all...why should local authorities use our (taxpayers) money to fund those people !...theres a rental market, if you are genuinely hard up then theres housing benefit...if we carry on like that in this country in 20 years im sure we will have like 1M people working in this country and paying tax and the remainder on some sort of hand-out funded by them frown
+1 - Exactly what I thought...

gingerpaul

Original Poster:

2,929 posts

274 months

Sunday 15th June 2008
quotequote all
If you were one of those 1M you'd be out of here like a shot though surely. I certainly can understand why people feel like leaving the UK. Fingers crossed for a change in government soon before the hole we're in is any deeper than it is already!

bogie

17,100 posts

303 months

Sunday 15th June 2008
quotequote all
yeah, whatever next?...maybe we can have a Pistonheaders benefit to help us get on the supercar ladder....why can't I get an interest free loan from my council for a Ferrari 599 ? ..I mean, it is my god given right to drive fast sportscars as well as own my own homewink

Ade355

337 posts

271 months

Sunday 15th June 2008
quotequote all
Ridiculous legislation. We should spend the money elsewhere:

1)give the FSA more resources to investigate crooked mortgage brokers.

2)focus on legislation that prevents banks from offering 95-125%+ mortgages in the future and puts a cap on borrowing multiples (something sensible like 4).

Simpo Two

93,009 posts

296 months

Monday 16th June 2008
quotequote all
If the Coucil taxed them less they might have enough money to pay the mortgage... no point in giving them £1 to get 10p back.

tigger1

8,478 posts

252 months

Wednesday 25th June 2008
quotequote all
Ade355 said:
2)focus on legislation that prevents banks from offering 95-125%+ mortgages in the future and puts a cap on borrowing multiples (something sensible like 4).
Salary multiples are meaningless, if you have money to cover the debt.

Also, 100% mortgages (often basically strapping a loan on the back of a large mortgage) can work for many people. I had got one when I bought my house - couldn't have bought without it. Knew that repayments weren't a problem (for a mortgage 4 times our JOINT income). The mortgage is, 3 years later, less than twice our joint income, over-paying steadily...and all is well. So I'm glad that your rules aren't in play in this merry game of "Mortgaging" Crescent.

Government should step aside on this one, it's between the banks, their customers and the BoE.

edb49

1,652 posts

236 months

Thursday 26th June 2008
quotequote all
Surely offering mortgages at below the market rate will only drive up house prices? Why would the government want to distort the market?

Ade355

337 posts

271 months

Thursday 26th June 2008
quotequote all
tigger1 said:
Salary multiples are meaningless, if you have money to cover the debt.

Also, 100% mortgages (often basically strapping a loan on the back of a large mortgage) can work for many people. I had got one when I bought my house - couldn't have bought without it. Knew that repayments weren't a problem (for a mortgage 4 times our JOINT income). The mortgage is, 3 years later, less than twice our joint income, over-paying steadily...and all is well. So I'm glad that your rules aren't in play in this merry game of "Mortgaging" Crescent.
If my stated regulations were in play from 10 years ago then house prices would not have artifically inflated as much and therefore 3 years ago you would have been spending a lot less for your home - therefore more affordable generally speaking and possibly a deposit may not have been an issue. New house builds would have been more considered and aiming for the long term as well - not biased towards city centre flats (and they would still be building today).

I guess with no regulation its a rollercoaster ride, human nature kicks in. It benefits me personally with an entirely free market, but I dont feel that is benefits the wider population, the poorest most vunerable people are screwed over the most.

Ordinary Bloke

4,559 posts

229 months

Thursday 26th June 2008
quotequote all
It's a bit like seatbelts really. If you let people not wear them, someone's going to get hurt. Maybe most of us are sensible enough, I used to wear a seatbelt before it was illegal, but sometimes we need some rules & regulations.

If you let some people borrow as much as they want, they'll borrow so much that 1) they'll bankrupt themselves if the market turns down. 2) the cost of housing will outpace inflation, guaranteeing a market downturn at some point.

Ade355

337 posts

271 months

Friday 27th June 2008
quotequote all
Ordinary Bloke said:
It's a bit like seatbelts really. If you let people not wear them, someone's going to get hurt. Maybe most of us are sensible enough, I used to wear a seatbelt before it was illegal, but sometimes we need some rules & regulations.

If you let some people borrow as much as they want, they'll borrow so much that 1) they'll bankrupt themselves if the market turns down. 2) the cost of housing will outpace inflation, guaranteeing a market downturn at some point.
Absolutely, some rules protect the people who are unable to think far enough ahead to realise the risk they are taking.

bogie

17,100 posts

303 months

Friday 27th June 2008
quotequote all
Ade355 said:
Ordinary Bloke said:
It's a bit like seatbelts really. If you let people not wear them, someone's going to get hurt. Maybe most of us are sensible enough, I used to wear a seatbelt before it was illegal, but sometimes we need some rules & regulations.

If you let some people borrow as much as they want, they'll borrow so much that 1) they'll bankrupt themselves if the market turns down. 2) the cost of housing will outpace inflation, guaranteeing a market downturn at some point.
Absolutely, some rules protect the people who are unable to think far enough ahead to realise the risk they are taking.
EXACTLY ...in the past 5 years, thousands have enjoyed cheap rates, made some money on their homes/invesments, others have drawn equity out for improvements/cars/whatever BUT at sensible levels and left plenty in there...its the minority which have REALLY stretched themselves over, with 35 year 120% 5x salary deals etc...and now its these people that are suffering as the market heads back to normality from the last 5 years craziness......