Brown unveils mortgage help plan

setmefree2

Brown unveils mortgage help plan

http://news.bbc.co.uk/1/hi/uk_politics/7763044.stm


People facing repossession will be able to defer part of their mortgage interest payments for up to two years under plans unveiled by Gordon Brown.
The plan is designed to give those who lose their jobs or take a big cut in their income an extended breathing space before their home is at risk.
The scheme will cover mortgages worth up to £400,000, the BBC understands.



Good news I think:D

setmefree2

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

This is how Robert Peston thinks it will work.

setmefree2

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aoD5Qd4n0T60

Brown Offers 1 Billion Pound Mortgage Loan Guarantee

HBOS Plc, Royal Bank of Scotland Plc, Nationwide Building Society, Lloyds TSB Plc, HSBC Holdings Plc and Barclays Plc were among lenders who had agreed to the package.

Apparently, this guarantee will cover about 70% of mortgages.:T:T

setmefree2

http://www.ft.com/cms/s/0/39ab3296-c143-11dd-831e-000077b07658.html?nclick_check=1


The scheme would offer protection to households that are falling behind on mortgage payments when one earner loses their job, falls ill, or suffers a big fall in income.

setmefree2

Officials estimate the measures will amount to a £1bn “contingent liability” but cost about £100m.


Cheap as chips!

ipri

Cant help thinking that this is a "get out" for those who have messed their finances up at the expence of the rest of us!....these people should have arranged mort protection if the were concerned about repayments!

MrMicawber_2

I am just wondering what the "law of unintended consequences" will throw up on this one.

E.g. House value at start 200k, defer for two years, house value at end 100k. Still no payment, lender re-possesses with 100k down the tubes plus no payment for 5 years. Both borrower and lender lose out. Not that lenders need too much sympathy - I'm just suggesting that there could be some mess on the way which no one's really thought about.

uzubairu

MrMicawber wrote: »

I am just wondering what the "law of unintended consequences" will throw up on this one.

E.g. House value at start 200k, defer for two years, house value at end 100k. Still no payment, lender re-possesses with 100k down the tubes plus no payment for 5 years. Both borrower and lender lose out. Not that lenders need too much sympathy - I'm just suggesting that there could be some mess on the way which no one's really thought about.

Interesting thought.