mortgage benefit cut

numpty888

tomjonesrules wrote: »

The DWP is able to verify the capital held by claimants.

There may be more jobs available in the south east, but that does not mean there is no work in the north. Maybe time to move outside your comfort zone?

The answer to your question stated yet again - capital in your home is illiquid. Not that difficult to understand, surely?

I really don't think the DWP have any idea of how much private investments are worth. I don't think they know how much my Van Gough is worth really.. They've never been round once.

I don't want to get too off topic but I've worked outside the South-East plenty of times and I'm sure that I will do again too. You still need a pretty good salary and deposit to buy. Maybe not Hull - okay - but elsewhere yeah...

This is to do with people who borrow money who then cannot afford to pay the interest on it. They could sell an asset to pay off the debt but instead expect tax payers to pay their interest off for them. Why do they expect this? Because they have that asset...

Yes - it's sad but maybe they should be expected to sell this asset before expecting tax payers to bail them out. Yes - properties are illiquid but if the price is reduced enough it will sell.

We're also missing another implicit subsidy in this. If house prices continue to fall - who picks up the tab if the person is still out of work and stands no chance of ever paying it back. Oh let me guess - that would be the shmuck tax payer again right!?

seeya23

MissMoneypenny wrote: »

Many people have an 'interest only' mortgage or swap to an 'interest only' mortgage when they are in financial trouble. Last year, welfare capped the interest rate they would pay on SMI.

I read on the mortgages board that many lenders are now asking for evidence of a repayment vehicle. Although I can't understand why someone would even take out an 'interest only' mortgage with no repayment vehicle in place

there a A two year time limit to SMI for new claimants getting income-based Jobseeker's Allowance was introduced from 5 January 2009 no time limit for

• Income Support this could be someone who has give up there job to look after someone who ill or a woman who has kids and the dad has walk out on them
• income-related Employment and Support Allowance this is someone who this to ill to work and pass atso medical and got more than 15 points
• Pension Credit for over 60 or 65

seeya23

numpty888 wrote: »

I really don't think the DWP have any idea of how much private investments are worth. I don't think they know how much my Van Gough is worth really.. They've never been round once.

I don't want to get too off topic but I've worked outside the South-East plenty of times and I'm sure that I will do again too. You still need a pretty good salary and deposit to buy. Maybe not Hull - okay - but elsewhere yeah...

This is to do with people who borrow money who then cannot afford to pay the interest on it. They could sell an asset to pay off the debt but instead expect tax payers to pay their interest off for them. Why do they expect this? Because they have that asset...

Yes - it's sad but maybe they should be expected to sell this asset before expecting tax payers to bail them out. Yes - properties are illiquid but if the price is reduced enough it will sell.

We're also missing another implicit subsidy in this. If house prices continue to fall - who picks up the tab if the person is still out of work and stands no chance of ever paying it back. Oh let me guess - that would be the shmuck tax payer again right!?

but it ok to bail out the banks ??????? and let kick all people on housing benefit out of there Council homes that would save £20.8bn a year

numpty888

No chance - RBS should have been allowed to become dust a long time ago.

Hammyman

numpty888 wrote: »

Nope - I just mean I've been priced out of the places that have jobs. If I thought that I could get a job in the North then I would go - no problem.

There are jobs around here. In my county unemployment is BELOW the national average. I get emailed hundreds a week.

The average property in the UK right now is about £160k I believe. 20% deposits are not untypical. And this ignores affordability. Even if you have got the deposit - you might not earn enough to get a big enough mortgage.

Yes. AVERAGE meaning some are more, some are less. And thats throughout the UK and there are huge differences in prices between the home counties and the Midlands upwards.

You're right though that the south-east is way, way worse. But the SE is where the few jobs are right now.

In London the unemployment rates are higher than where I live.

andrea_louise

MissMoneypenny wrote: »

Many people have an 'interest only' mortgage or swap to an 'interest only' mortgage when they are in financial trouble. Last year, welfare capped the interest rate they would pay on SMI.

I read on the mortgages board that many lenders are now asking for evidence of a repayment vehicle. Although I can't understand why someone would even take out an 'interest only' mortgage with no repayment vehicle in place

Have you tried to get an "Interest only" mortgage, or swap to an interest only mortgage, when your MPPI insurance refused to pay out and you ended up (after living off the rainy day money for 2 years) on benefits? No, thought not....

I receive £12 a week SMI, The other £46 (a week) for the repayment part, still needs to be paid for at the expense of food, heating and everything else.

[Deleted User]

BigAunty wrote: »

This thread should be moved to Discussion Time.

I'm not surprised the government is tempted to try and reduce the £400 million per annum it spends preventing hard up property owners from having their properties repossessed.

Owning properties involves risk and rewards - the risk of changes to income and the reward of having your own place that may go up in value.

Perhaps a better way would be to put the responsibility back on the homeowner, not through placing a charge on the property which seems a huge scheme to manage and can only really be realised when the property is sold, but to make it compulsory for a person with a mortgage to have sickness/unemployment insurance?

total rubbish of course,all such insurance pays out for 12 months only,during which smi is reduced anyway,thats if the insurer doesnt wiggle out of paying on some technicallity
if some one bought a house 20 years ago then became disabled/sick etc why in gods name shouldnt the state help keep a roof over their heads?far cheaper in many cases than paying lha or hb,as smi has a maximum payment now of £140 per week(thats the absolute MAXIMUM)and can be limited to 2 years for those on jsa

[Deleted User]

MissMoneypenny wrote: »

Someone of one of these threads (a while ago) said they had their mortgage paid for 12 years.



No idea how much money was given, but it meant that with the taxpayer paying their monthly payments which allowed them to keep the property, then they would have had 12 years of house price rises too.

Any idea when this temporary SMI (paying out in 13 weeks instead of the normal 39 weeks; paying on a maximim of 200k instead of the normal 100k) ends?

we had smi paid for 13 years until we sold up this year and bought for cash to avoid the very changes that are being proposed,and yes when i became disabled we had insurance in place which paid out for 12 months,having waited 39 weeks we then lost out for 13 weeks because of the insurance,over the years our smi varied as interest rates varied but we always had to top up to cover the full mortgage usually around £100 a month
had the help not been avaliable we would have lost our home(and the kids were still at home)and the council would have had to rehouse us and paid us 100% of our rent(this was pre lha days)which would have been a bad deal for us and also a bad deal for the tax payer
smi as it now stands is fair all round,the notion of the dwp putting a charge is quite frankly draconian,even more so when you consider only around 200,000 qualify for it anyway and even many of them get only a few £ a week in help

BigAunty

13 years of SMI!? No wonder the govt is torching SMI....

[Deleted User]

BigAunty wrote: »

13 years of SMI!? No wonder the govt is torching SMI....

and why the HELL NOT ive been unable to work for 13 years NOT unwilling !
i`d glad swap my bad health for your good health any day then you might have a morsel of compassion