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Debate House Prices


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Support for mortgage interest benefit cut by thousands of pounds

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Comments

  • silvercar
    silvercar Posts: 49,897 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Graham_Devon wrote: »
    Not everyone who is in receipt of SMI, will need to have rent paid via LHA.

    You seem to have told us it only pays the interest part...therefore these people on SMI still have to pay the capital. But on the other hand, to back up the argument for SMI continuing and it's all so nasty cutting it, you assume the same people making capital payments, or at least, some form of payment towards their mortgages suddenly won't have any money if SMI stops and they will all have to go cap in hand and get LHA money to rent a place. So where is their mortgage money to pay the capital part coming from currently!!?

    I mean, seriously, can you not see how you are using two extremes here?

    Ever heard of interest only mortgages? Even people on repayment mortgages can often move to interest only for a period of time.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • C_Mababejive
    C_Mababejive Posts: 11,668 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    HtHoldings wrote: »
    Yeah right just put a for sale sign up that will solve the problem.
    Yes it will. There will be greater fairness and transparency. Isnt that what Blair kept bleating about? A fairer society?

    Alternatively,if the taxpayer pays part of the mortgage then the state should retain a fractional interest on the property and in better times,the owner can then buy that fraction back or rent it back.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    PasturesNew wrote: »
    I filled in the entitledto form and it said my income was £800/week the way they calculate it. Obviously it's nowhere near that

    If your lump sum is in ISA's and/or NS&I tax free savings (or pensions BTW), any income from it can be disregarded for calculation of income for WTC purposes.

    BTW, this can lead to previously highly paid individuals with millions in pension funds being able to claim WTC's.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • ILW
    ILW Posts: 18,333 Forumite
    StevieJ wrote: »
    Because it is more than likely cheaper than paying the rent, we can't afford your Telegraph/Mail sensibilities we have a very large deficit to be eroded.

    Bit like saying it is more expensive to police areas than the damage caused by not bothering. Unless a message is given then things will never be sorted.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Jonbvn wrote: »
    If your lump sum is in ISA's and/or NS&I tax free savings (or pensions BTW), any income from it can be disregarded for calculation of income for WTC purposes.

    BTW, this can lead to previously highly paid individuals with millions in pension funds being able to claim WTC's.
    But it's not, except about £10k. But, also, I wouldn't have known that.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    silvercar wrote: »
    Ever heard of interest only mortgages? Even people on repayment mortgages can often move to interest only for a period of time.

    Of course I have, but what's the point in pretending everyone on SMI is on interest only?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ILW wrote: »
    Bit like saying it is more expensive to police areas than the damage caused by not bothering. Unless a message is given then things will never be sorted.

    What you really mean is if we can get people turfed out of their properties if they lose their job we may see house prices collapse, and you will be able to pick up a bargain. Be careful, it may happen to you one day.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Graham_Devon wrote: »
    Not everyone who is in receipt of SMI, will need to have rent paid via LHA.

    This has also been said over and over also.

    Many people will be able to sell and downsize. Many people will be able to sell and release lots of equity and pay their own rent. Many people cannot afford their large mortgage payments, but will be able to afford to rent a home.
    .

    Let me just get this correct, are you saying that everytime some mortgage holder becomes unemployed and needs state help they should sell their house?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • ILW
    ILW Posts: 18,333 Forumite
    StevieJ wrote: »
    What you really mean is if we can get people turfed out of their properties if they lose their job we may see house prices collapse, and you will be able to pick up a bargain. Be careful, it may happen to you one day.

    I could not care less about house prices as mine is all paid off. But all the time I had a mortgage I would never have dreamed of the state paying it for me and planned my finances on that basis. Whilst people believe that if you over borrow etc you will be covered by taxpayers if things do not work out, them many will not take any personal responsibility. The banks being a pretty good example.
  • ILW
    ILW Posts: 18,333 Forumite
    StevieJ wrote: »
    Let me just get this correct, are you saying that everytime some mortgage holder becomes unemployed and needs state help they should sell their house?

    It would make people realise that finance is a serious matter.
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