RBS to allow six months of defaults before repossessing.

kennyboy66_2

lostinrates wrote: »

I'm adding to this thread on this topic because its longer.

Heard this on th way to th station this morning and the first thing I thought was that it was good news for people, then wondered: if thy inevitably heading towards reposession how useful is it? Does it merely add 6 months interest paymnts to their repayable debt and put them lower down th queue for housing benefit/council accomodation in six months? I don't know, I just was worried for people for who this might not be the best option, even whn it seems it might be.

It will work for some but may well have the effect you think for others.
It may not be the best option for everyone, but on balance it is probably a good thing.

Lotus-eater

My first thought was, Oh great, those of us who have been prudent are paying for the others yet again.
2nd thought was, maybe it could stop some families being put out onto the street.
3rd thought, will this actually work? Like lir's says above, won't it just get them further in debt as the interest is still added onto the mortgage?

kennyboy66_2

MissMoneypenny wrote: »

That just about sums up the BTLers and flippers.

Isn't this a bit like a childs argument of 'They started it' ?

Bf109

kennyboy66 wrote: »

a thinly disguised "I want a cheaper house & don't care who suffers for it" thread.

Maybe its an "I'm sick of the government stealing my money to bail out !!!!less wasters" thread?

ad9898_3

kennyboy66 wrote: »

Isn't this a bit like a childs argument of 'They started it' ?

Well they did................. and my dad is bigger than your dad:D.

kennyboy66_2

ad9898 wrote: »

Well they did................. and my dad is bigger than your dad:D.

you, and whose army ?

chucky

it''s very good news that people will have more time and not be thrown out of their properties. this is the important thing.

it's a shame for people that are looking for a mortgage though - RBS will have less cash floating around to lend now upsetting many a HPC loon. :rotfl:

it's good news, hopefully other banks will follow suit.

Dithering_Dad

Looking behind the headlines (and the left & right wing rhetoric on this thread), I suspect the reality will be that the RBS will offer help to more prudent home owners who simply find themselves out of work in a recession and will help out until they find a job and get on their feet financially.

It's actually much better business sense to help people who have been good customers until they were hit by a recession (not of their causing) than to take their houses off them at the first default and sell it for a pittance, turning a drama into a crisis.

No doubt that once these people are back on their feet any defaults will simply be added to their mortgage, where they will pay for it themselves, probably many times over.

Cannon_Fodder

Are RBS qualified to tell the difference between say;

- that couple who MEW'd to buy a business that turned out to be a poor investment.
- JCB/builders - hit by house-building collapse, directly caused by the credit crunch.
- Woolworths employees - it has been argued that it was just a case of when, not if...

?

Which of the 3 are most deserving? Some of each type depending on being good payers? All of one type, none of another...?

= a minefield, I would suggest. Though a complicated bureaucracy, failing to be implemented accurately sounds right up the Govts street.


As for RBS "having less cash to lend" - that's a good thing for house prices, as less lending = greater affordability, I thought?

drbeat

As Mr Mortgage would put it "This just kicks the can further down the road".