Nationwide Nov08: -0.4% Mom, -13.9% Yoy

Generali

baileysbattlebus wrote: »

There was help during the 1990's. The 39 weeks rule was brought in in 1995 and applied to houses bought in 1995 onwards
The coverage of the means-tested state safety net (usually called ‘ISMI’) for home-owners was first curtailed in 1987, and then cut back significantly on most new mortgages in 1995.
Before 1995, actual interest payments on the first £125,000 were eligible, but after 1995 the ceiling was reduced to £100,000 and a ‘standard’ interest rate was used.
Before 1995 borrowers had to wait eight weeks for partial assistance and 27 weeks for full assistance. After 1995, borrowers received no assistance for the first 38 weeks of a claim.

The new regulations will be a big help to people who lose their jobs - and there will be plenty of them. At least with the reduction to 8 weeks and the lifting of "standard interest rate", people will be less likely to be repossessed.

This will have a peverse impact. I've known a couple of people that get their mortgage interest paid and have done for many years. They both would like to take an entry level job but can't afford to because they lose the interest payments.

Despite the pain, they would have been better off being repossessed and renting as they'd have been able to afford to take a career job later on.

wintersunshine

Generali wrote: »

This will have a peverse impact. I've known a couple of people that get their mortgage interest paid and have done for many years. They both would like to take an entry level job but can't afford to because they lose the interest payments.

Despite the pain, they would have been better off being repossessed and renting as they'd have been able to afford to take a career job later on.

Nobody is better off being repossessed that's just a crazy thing to say. As for your friends - I'm speechless that they couldn't find a job in the last couple of years - both of them?

wintersunshine

dopester wrote: »

You're having a laugh if you think we're near the bottom of the market. The house price crash has only just started.

I have no idea whether we are at the bottom or not - does anyone? We will all lose however if the housing market falls of a cliff - steady decline or stagnation is best. Don't miss the boat.

mitchaa

wintersunshine wrote: »

Nobody is better off being repossessed that's just a crazy thing to say. As for your friends - I'm speechless that they couldn't find a job in the last couple of years - both of them?

Ever heard the term benefit trapped;)

Happens to so many once they go down the slippery slope of claiming benefits.

wintersunshine

mitchaa wrote: »

Ever heard the term benefit trapped;)

Happens to so many once they go down the slippery slope of claiming benefits.

Oh come on - who couldn't find a job in the last couple of years? There is something dodgy about this story;)

Generali

wintersunshine wrote: »

Nobody is better off being repossessed that's just a crazy thing to say. As for your friends - I'm speechless that they couldn't find a job in the last couple of years - both of them?

If you look at the course that their lives have taken, they would have been better off being repo'd years ago when their finances went bad.

To take one example. Woman's OH leaves her pregnant with a small child too. She has a small two bed flat, is quite bright but under educated. She has to sign on and the DSS (or whatever) pay her mortgage interest.

12 years later she is in the same small 2 bed flat with a teen and a nearly teen. She is still under educated and has no chance of getting a decent job because she has no skills to offer. It's not worth her getting a rubbish job as she'll lose the mortgage interest payments on her home and be repossessed.

If she'd be repossessed way back she could have worked towards a better life for her and her kids. As it is, she's stuck in this crazy limbo where she can't afford to take a job until the kids leave school by which time it's too late for her to make a career.

chucky

wintersunshine wrote: »

I have no idea whether we are at the bottom or not - does anyone? We will all lose however if the housing market falls of a cliff - steady decline or stagnation is best. Don't miss the boat.

if you have nothing and are unhappy why would you want other people doing well or them being happy in their lives.

drbeat

wintersunshine wrote: »

Oh come on - who couldn't find a job in the last couple of years? There is something dodgy about this story;)

It's called the Poverty Trap and a lot of people are in such a trap where it is better to stay on benefits then to get a job. People who fall in this trap are usually low skilled and will find themselves worse off by getting a job. It's been happening for years.

drbeat

wintersunshine wrote: »

steady decline or stagnation is best. Don't miss the boat.

I wonder how many Woollies, MFI and/or DSG employees they are that have now shelved the idea of getting a mortgage?

kennyboy66_2

Generali wrote: »

If you look at the course that their lives have taken, they would have been better off being repo'd years ago when their finances went bad.

To take one example. Woman's OH leaves her pregnant with a small child too. She has a small two bed flat, is quite bright but under educated. She has to sign on and the DSS (or whatever) pay her mortgage interest.

12 years later she is in the same small 2 bed flat with a teen and a nearly teen. She is still under educated and has no chance of getting a decent job because she has no skills to offer. It's not worth her getting a rubbish job as she'll lose the mortgage interest payments on her home and be repossessed.

If she'd be repossessed way back she could have worked towards a better life for her and her kids. As it is, she's stuck in this crazy limbo where she can't afford to take a job until the kids leave school by which time it's too late for her to make a career.

I'm sorry Generali, that is just bull****. She has had 12 years without working, presumably 6 of those years have seen both kids at school, but is still "under-educated".
There has been no end of help available for people to improve their skills in the last 10 years, and whilst people probably learn more in a work environment, in her apparent circumstances she really could have done anything she wanted.

You are usually right about elements of the benefits trap, but some people seem unable to help themselves. Perhaps not as bright as she seems.