50% drops by 2011

hethmar

I dont think making yourself unemployed would qualify nova. The support would be limited and its only the interest.

It may be that some form of shared ownership would be offered, where the council owns part of the property.

WTF?_2

novazombie wrote: »

Please forgive me but I dont understand.

Is the government offering to pay off the interest of the mortgages of everyone who becomes unemployed? Its almost worth becoming unemployed

Time to go out and buy the most expensive property I can get, interest only mortgage. Then get fired.

Then spend all my savings on kitting it out like a celebrity 'crib', leaving enough to get through 13 weeks to supplement my JSA (no more in case the savings jeopardise the benefits).

After that, sit on the dole and let the taxpayer take the strain. Sounds great.

What with all the public cash committed to saving a shaky banking system plus the huge existing PSBR, mass unemployment looming and a huge reduction in tax revenue ... what can possibly go wrong for Britain? Here's to a bright future, thanks to Gordon the superhero :rolleyes2

Lotus-eater

What you do is spend all your money on dried and tinned food, Enough seeds to plant your own veg and a big petrol tank (full up) round the back.Live for quite a while like that, with the tax payer taking care of the IO mortgage.

WTF?_2

hethmar wrote: »

I dont think making yourself unemployed would qualify nova. The support would be limited and its only the interest.

It may be that some form of shared ownership would be offered, where the council owns part of the property.

From what I remember last time around there was huge controversy about people living in super-expensive houses or luxury pads with their mortgages being covered by social security. I think that's why the limit got pushed to 39 weeks before payment.

They only pay interest, but if you have an interest-only mortgage that's all you need! And you can always switch to IO from repayment ... if you are in negative equity it would very much be in the interest of your mortgage provider to facilitate this.

If they are reducing it again that means a lot of extra demand on social security resources. I suspect they want to minimise the economic and political fallout from the mass repossessions which would otherwise (probably still will, anyway) ensue.

Hey, now that the govt is underwriting/controlling approx 45% of British mortgages they have a vested interest in not losing money through repos and the inevitable bankruptcy and bad debt. Bend over mister taxpayer, you are gonna get shafted either way.

Dithering_Dad

!!!!!!? wrote: »

Time to go out and buy the most expensive property I can get, interest only mortgage. Then get fired.

Then spend all my savings on kitting it out like a celebrity 'crib', leaving enough to get through 13 weeks to supplement my JSA (no more in case the savings jeopardise the benefits).

After that, sit on the dole and let the taxpayer take the strain. Sounds great.

What with all the public cash committed to saving a shaky banking system plus the huge existing PSBR, mass unemployment looming and a huge reduction in tax revenue ... what can possibly go wrong for Britain? Here's to a bright future, thanks to Gordon the superhero :rolleyes2

Why would you do this, it's only the interest that is being paid on the mortgage, not the capital. You would be much worse off than if you kept your job and simply paid down the mortgage.

You would actually be much better off as a tenant where your rent is paid for as long as you are unemployed, unlike mortgage interest where they stop paying this after 2 years. I think the period between losing your job and getting your rent paid is shorter too.

Cannon_Fodder

does the rent benefit get paid if you have funds in the bank?

not just STRs, but any sensible saver could have their savings eaten up before the benefit is paid, I thought.

Yoshua

Dithering_Dad wrote: »

Why would you do this, it's only the interest that is being paid on the mortgage, not the capital. You would be much worse off than if you kept your job and simply paid down the mortgage.

You would actually be much better off as a tenant where your rent is paid for as long as you are unemployed, unlike mortgage interest where they stop paying this after 2 years. I think the period between losing your job and getting your rent paid is shorter too.

This changes everything we have all been saying, is it true what Dithering Dad is saying- its only for 2 years?

If it is true then the amount of repo`s is going to be absolutely enormous when the unemployment figures sky rocket.

novazombie

Yoshua wrote: »

This changes everything we have all been saying, is it true what Dithering Dad is saying- its only for 2 years?

If it is true then the amount of repo`s is going to be absolutely enormous when the unemployment figures sky rocket.

Yes it`s true. The 2 years of interest being covered will hold off the repo`s temporarily. Then when the gov stops paying off all those mortgages whats going to happen to house prices?

Looks like 50% by 2011 is optimistic, could be far worse if unemployment and repossessions go the way they are predicting. This recession looks like following what happened in Japan where house prices went down 80%. Not saying the UK will drop 80% but 50% is realistic.

StevieJ

novazombie wrote: »

Yes it`s true. The 2 years of interest being covered will hold off the repo`s temporarily. Then when the gov stops paying off all those mortgages whats going to happen to house prices?

Looks like 50% by 2011 is optimistic, could be far worse if unemployment and repossessions go the way they are predicting. This recession looks like following what happened in Japan where house prices went down 80%. Not saying the UK will drop 80% but 50% is realistic.

Should be some top rental yields for the pro buy to letters

RDB

What happened in Japan could happen here. We are following almost exactly the same thing. Japan is always ahead with everything, they are just coming out of recession now.
But go back before it all started there and what caused the problems in Japan were the same as what caused it here; Easy money. House prices shot up in Japan just like they have done here in the UK. Then they slowly started to fall the stage we are now at. The next stage was collapse. 80% crash.

People just don't want to believe its possible in the UK so they are in denial. Its like a dirty thing to say that the mighty Britain will follow what happened in Japan.


Just think when Japan was at the stage we are at now they just couldn't believe prices could fall even 50%, as many people in the UK cant now. But the facts speak for themselves - PRICES DID FALL 80% no matter how many people are in denial.