Mortgage lenders snub Government support scheme

themanbearpig

The UK’s biggest lenders have snubbed the Government’s flagship scheme to help borrowers struggling to meet their mortgage repayments.
Abbey, Barclays and Nationwide said they were unable to commit to the Homeowner Mortgage Support Scheme before the deadline yesterday.

The only lenders to pledge support last night were the state-owned Northern Rock and Bradford & Bingley.

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5946624.ece


Its pretty clear what the banks think of Gordons schemes!

Not so good for all the people that took huge mortgages though. Its all going to end in tears for a lot of people.

chopperharris

I have a problem with this scheme....in that I am confused.

I thought you had to have job protection insurance ...so thats the first year garunteed paid.

Let me see if I have this right?

So hmg is forcing the lenders to commit , ie do their bit , and give 2nd year provision of "roof over head" yet not at their cost?

A)Its only at their cost if they reposess and sell in year three , or will it be added to total borrowed?

B)Its actually the mortgage payer thats eventaully paying it , assuming that they have income again to do so from year three.

C)From year three benefits pays just the interest.

Presently if your on benefits from year two , after the insurance has expired , the govt will pay interest on the mortgage.Someone correct me if I am wrong .

I think its a case of the banks standing up to the changes that have been promised .... the ones doing so are without any need of any bailouts or have had any from the taxpayer.A sign of things to come from the "independants" and a sign should they need any money that they wont get it from HMG.

Degenerate

chopperharris wrote: »

I thought you had to have job protection insurance ...so thats the first year garunteed paid.

Nope. Sounds like you were mis-sold.

Conrad

Gordie is like a WW1 General, plotting and planning, but never been more than 6 ft from the sherry cabinet.

carolt

So who nicked my thread on this?

Good thread, though, glad it's still here, minus whatever stupid comments presumably killed the original in the meantime....