Councils ARE to bail out over-indebted mortgagees!

baby_boomer

Indeed. Wasn't Gordon furious when Blair "spent" about £10bn on the NHS without Gordon's approval, just to sidestep an awkward question on the BBC?

fiodyl

Theres no way the government is gonna b able to bail out everyone- otherwise people trying to sell would just stop paying their mortgages.Its likely to only be those in the worst circumstances, that would have ended up on the councils waiting list anyway. Basically these people will get fast tracked and the pressure on the council housing list will temporarily ease a little.

Max_Headroom_3

fiodyl wrote: »

Basically these people will get fast tracked and the pressure on the council housing list will temporarily ease a little.

Yeah, fast tracked straight into the homes they already live in, how lovely for them. No having to move into social housing, no loss of face with the neighbours, no having to downsize or get rid of the big telly or the new car cos there's no where to park it.

Sorry if this sounds cynical, but the whole scheme just has "bail out for the financially inept" written all over it.

MissMoneypenny

Many councils are still waiting for the money the government owes them for housing asylum seekers, so it's going to be interesting to see if/when councils can afford to do this without the money up front from government.

fiodyl

Max_Headroom wrote: »

Yeah, fast tracked straight into the homes they already live in, how lovely for them. No having to move into social housing, no loss of face with the neighbours, no having to downsize or get rid of the big telly or the new car cos there's no where to park it.

Sorry if this sounds cynical, but the whole scheme just has "bail out for the financially inept" written all over it.

I agree with you completely. Instead of accepting a dilapidated flat on an estate full of drug addicts and saving up to buy house one day, I should of lied to get a mortgage on a nice house of my choice then waited for the council to buy it off me when I couldnt afford the repayments.

Silly me :mad:

Max_Headroom_3

Another thought.

Extension of powers for councils and housing associations to be able to pay off debt for homeowners who can no longer afford mortgage payments and then charge rent.

If the homeowner is not in negative equity then they can pay off their own debt by simply selling the house (if they have equity then they are already likely to be better off than many many renters, and they are not due a hand-out, indeed if they're tax payers they'll be funding the hand-out!).

And if the homeowner is in negative equity than this will surely mean the council paying mnore than market value for the house in order to clear the mortgage (and that is before you take into account the fact that it is a depreciating asset).

Surely they should not be paying above market value for properties for no good reason other than to help out the home owner. It's tantamount to indescriminantely handing out cash isn't it?

brixham

Did they say Councils are going to prvide the money ?
Torbay council hasn't got enough money to keep its toilets open so where is the money coming from?

lostinrates

brixham wrote: »

Did they say Councils are going to prvide the money ?
Torbay council hasn't got enough money to keep its toilets open so where is the money coming from?

Pound (un)wise and (spend a) penny foolish?:p

Dan:_4

Max_Headroom wrote: »

Another thought.



If the homeowner is not in negative equity then they can pay off their own debt by simply selling the house (if they have equity then they are already likely to be better off than many many renters, and they are not due a hand-out, indeed if they're tax payers they'll be funding the hand-out!).

And if the homeowner is in negative equity than this will surely mean the council paying mnore than market value for the house in order to clear the mortgage (and that is before you take into account the fact that it is a depreciating asset).

Surely they should not be paying above market value for properties for no good reason other than to help out the home owner. It's tantamount to indescriminantely handing out cash isn't it?

I actually like this idea. Infact I might defualt on my mortgage, become a council tennant without having to move house, and in a few years, when prices have crashed I will buy it back (with a right-to-buy discount of course).

amcluesent

So, no moral hazard is to be allowed.

I can see the slogan in 2010 "Vote Labour to keep your home!"

Sensible peeps way well consider withholding tax is the right thing to do.