We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Councils ARE to bail out over-indebted mortgagees!
Max_Headroom_3
Posts: 1,597 Forumite
Little paragraph in the BBC report today:
http://news.bbc.co.uk/1/hi/uk_politics/7592852.stm
I find this a really worrying scheme.
Firstly it seems a bail out for the banks who now won't find themselves with so many loans not being paid, so no "pain" for their silly lending.
Secondly, how are they going to decide the criteria for these bail outs? If (as many have done) people have MEWed up to the eyeballs for holidays and flash cars and now cannot pay the mortgage, are they due a hand-out with tax payers money?
I think this is a really worrying precident to set personally, yet another level of personal responsibility removed (hey, don't worry about living within your means, the government are there to make sure you cannot lose your home just because you can't afford to pay for it).
For existing homeowners who can no longer afford mortgage payments, the government says councils or social housing landlords can pay off the debt and instead charge tenants rent "at a level they can afford".
http://news.bbc.co.uk/1/hi/uk_politics/7592852.stm
I find this a really worrying scheme.
Firstly it seems a bail out for the banks who now won't find themselves with so many loans not being paid, so no "pain" for their silly lending.
Secondly, how are they going to decide the criteria for these bail outs? If (as many have done) people have MEWed up to the eyeballs for holidays and flash cars and now cannot pay the mortgage, are they due a hand-out with tax payers money?
I think this is a really worrying precident to set personally, yet another level of personal responsibility removed (hey, don't worry about living within your means, the government are there to make sure you cannot lose your home just because you can't afford to pay for it).
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
0
Comments
-
Spot on about the personal responsiblity angle.
This government seem determined to turn the nation into a bunch of state-dependant idiots.
The big question is where is all the cash to bail irresponsible borrowers out going to come from??? Higher council tax? Government loans to councils (higher tax, more borrowing?)--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Will this - coupled with the other announcements today - cause one of those fabled bull traps to occur I wonder?0
-
I saw some minister talking about this on the breakfast telly.
I have avoided property ownership because i was fully aware that they were overpriced and that a lot of people were simply lying about their income.
It had to implode and straighten itself out and should be left well alone by the authorities. The home owners chanced it and got burned, they now lose their house like thousands have done before them. That house should then be on the market at a price that allows sensible people to bid on it.
And what is to say that 4 years of renting your own home back you will not be eligible to buy it under the right to buy scheme or whatever it may be called now, at taxpayers expense.
And what about needy families that have been waiting years to go and live in a council dump, they are effectively passed over by someone coming straight onto the councils books and being given a lovely home.
This cannot be allowed to happen.
If these chancer's homes had risen in value by 100%, would they have gone and donated a load to the local authorities? To the tax payers? No.
Stay out Government!!!!!! This is not your quarrel.S!!!!horpe0 -
Ha Ha Ha! Im Safe! And Yer Crash Aint Happening!
Losers!0 -
Who's going to set the current house price value for these bail outs / buy outs? We need some very hard nosed surveyors acting on the taxpayer's behalf.
As Council Tax payers and concerned citizens, we need to make sure that local authorities drive a hard bargain. We need them to assume that the market could easily drop another 30% to safeguard any foolish "investment" on our behalf.
If we have to put up with bail outs, they must not be freebies.
We should write to our respective Councils, and use the local press if need be, to make sure that our money isn't poured down the drain.
Central government can set up such a scheme, but the accountability is now local - and we need to make our elected representatives accountable for any policy decisions they make. Especially since any wrong decisions will impact on Council Tax bills in future years, not now.0 -
Ha Ha Ha! Im Safe! And Yer Crash Aint Happening!
Losers!
Already happening I'm afraid. Far worse to come. Assume you are hoping to benefit from the latest government hand out to the financially inept. Back to social housing for you then and higher taxes to pay. Probably find some way of abusing the rental element by claiming Housing benefit I would imagine.
If the present government had any courage they would have allowed the market to find it's level and acknowledged their failures aided and abetted by greedy bonus driven banks. Not that it matters as their measures are simply too late and not enough.0 -
And what about needy families that have been waiting years to go and live in a council dump, they are effectively passed over by someone coming straight onto the councils books and being given a lovely home.
That is a staggeringly good point! Basically the financially imprudent have been effectively allowed to chose their own council houses, the vast majority of which will be far nicer than the average council dwelling no doubt, all bought and paid for by those with a bit more financial nouse (and many of those will not have a nice subsidised council house and instead be paying full private rent because they were'nt daft enough to over indebt themselves).
This scheme is just so fundementally flawed it isn't true! :mad:Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
baby_boomer wrote: »Who's going to set the current house price value for these bail outs / buy outs? We need some very hard nosed surveyors acting on the taxpayer's behalf.
As a Council Tax payer and concerned citizen, we need to make sure that local authorities drive a hard bargain. We need them to assume that the market could easily drop another 30% to safeguard any foolish "investment" on our behalf.
If we have to put up with bail outs, they must not be freebies.
Afraid the present government would do anything, sell anything, to try and save their skin. Too late I am afraid. Goodbye and good riddance to the most incompetent and self serving Prime minister in modern times within a year.
Best you get you CV into a couple of the banks now Brown, take a mop and a clowns outfit to the interview. Mind you you will have to go some to make them laugh at you anymore than they are now. Perhaps you work 'prudent' into your CV, have rolling about on the floor......0 -
Afraid the present government would do anything, sell anything, to try and save their skin. Too late I am afraid. Goodbye and good riddance to the most incompetent and self serving Prime minister in modern times within a year.
.
To be fair to Crash Gordon, Tony Bliar was equally culpable of building the 'debt and dependency economy' and a whole order of magnitude more slimy, conniving and duplicitous.
He managed to walk away at almost exactly the right time leaving gormless Gordon to carry the can for everything. First class political work, you have to admire his style I suppose.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards