The Last 5 Major Uk Recessions

Realy

!!!!!!? wrote: »

Interest will be paid by the welfare system - it's the stupidly high capital amount that they'll have borrowed to buy the house that'll most likely do them in if they are stuck on a repayment mortgage.

Thank you, HPI........

Wrong,
A, B or C was the answer.;)

WTF?_2

StevieJ wrote: »

Why when that means higher mortgage rates?

If they have savings (generating interest) they can use that to meet the mortgage repayments and reduce the overall debt, for as long as the savings last.

Once the savings run out, they get the interest on the debt paid by the state.

Therefore, interest rates are of minimal concern for someone with a mortgage who is made unemployed. It's not rocket science, is it?

vigesimal

!!!!!!? wrote: »

Interest will be paid by the welfare system - it's the stupidly high capital amount that they'll have borrowed to buy the house that'll most likely do them in if they are stuck on a repayment mortgage.

Someone gets it:T:T:T:T:T:T:T

Realy

vigesimal wrote: »

Only 3 months to find a job? On the same wages? Dream on.

I smell a fool, did you not see the income protection bit.

Have we got a teacher blah blah blah....

Realy

vigesimal wrote: »

Someone gets it:T:T:T:T:T:T:T

I bet you don't never have never will.;)

Realy

!!!!!!? wrote: »

If they have savings (generating interest) they can use that to meet the mortgage repayments and reduce the overall debt, for as long as the savings last.

Once the savings run out, they get the interest on the debt paid by the state.

Therefore, interest rates are of minimal concern for someone with a mortgage who is made unemployed. It's not rocket science, is it?

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
That is the best post yet.
Hello !!!!!!........
You do still have to repay the mortgage and will get a job one day.

Lets see when !!!!!! meets mrs !!!!!! gets divored has to buy out the house or move out losses job.
Lets see if you think IR rates dont matter.

PS WE ARE TALKING ABOUT REsCUING JOBS, NOT HOUSEs FOR THE IR CUT

WTF?_2

purch wrote: »

So you have £ 10,000 in savings and a £ 250,000 mortgage.............how neutral is that ?

Because in the grand scheme of things the savings will be used to make repayments of the mortgage until they run out at which point the state pays the interest for you.

You aren't going to lose your house because of high interest rates (which was the argument being used in favour of the apparent humanitarian case for cutting rates) as long as you are paying the mortgage from your savings.

Once your savings run out, the state pays the interest anyway.

Ergo, the "We must cut interest rates to help out those poor people who will be made unemployed" argument is a crock of crap. Lower interest rates will not help unemployed people keep houses they would otherwise lose - inability to meet the capital repayments (not covered by the state) is what will cause them to lose the house.

The capital repayments are more likely to be impossible to meet if you borrowed too much in the first place to buy your house - which is a symptom of HPI.

(Of course you will lose your savings in the process - that's what happens when you get made unemployed and part of the reason why you have savings in the first place.)

WTF?_2

Realy wrote: »

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
That is the best post yet.
Hello !!!!!!........
You do still have to repay the mortgage and will get a job one day.

Lets see when !!!!!! meets mrs !!!!!! gets divored has to buy out the house or move out losses job.
Lets see if you think IR rates dont matter.

PS WE ARE TALKING ABOUT REsCUING JOBS, NOT HOUSEs FOR THE IR CUT

Lower interest rates will make little difference because either the umployed person has savings (from which they gain from higher interest rates) or the government sticks it's hand in the taxpayers pocket and takes out the cash to pay the interest for the unemployed person,

Stop coming up with spurious humanitarian sounding arguments to cut rates - it just shows how desperate you are getting.

Realy

!!!!!!? wrote: »

Because in the grand scheme of things the savings will be used to make repayments of the mortgage until they run out at which point the state pays the interest for you.

You aren't going to lose your house because of high interest rates (which was the argument being used in favour of the apparent humanitarian case for cutting rates) as long as you are paying the mortgage from your savings.

Once your savings run out, the state pays the interest anyway.

Ergo, the "We must cut interest rates to help out those poor people who will be made unemployed" argument is a crock of crap. Lower interest rates will not help unemployed people keep houses they would otherwise lose - inability to meet the capital repayments (not covered by the state) is what will cause them to lose the house.

But if you find a job all be it lower paid in those 13 weeks you would be worse off.
It is not hard to work out.

Anyway I am sure most on here are arguing rate cut for hopefully less job cuts not as a small rescue package for the unenployed.

purch

Once your savings run out, the state pays the interest anyway

So you need the lowest Interest rates possible, so that your savings will last longer I guess.

Seems sensible to me.