How long before all the repossessions can not be postponed any longer?

Mortabrey

suemacd22 wrote: »

I am currently claiming JSA and receive help with mortgage interest payments. Is there a limit to how long I will receive help for? Someone told me it is only paid for 2 years, can anyone confirm this please! Thank you.

It was supposed to be 18months but there would be huge numbers of repossessions and the government want to do everything to keep house prices defying gravity.

I wouldnt worry there have been some getting their mortgage interest paid for years now. They will not stop paying it because it would lead to huge numbers of repossessions. It will happen anyway when interest rates go back up to the normal 8% for the last few decades. They just want to postpone the repossessions as long as they can, the longer they kick the can down the road the bigger the problem gets.

moneyinmypocket

We live in the new world -8% IR aren't the norm any longer - sub 2% are

chucknorris

It has been a very long time since 8% interest rates were normal

Mortabrey

moneyinmypocket wrote: »

We live in the new world -8% IR aren't the norm any longer - sub 2% are

The bad news is things always revert to the long term norm. The good news is things always revert to the long term norm. :rotfl:

Mortabrey

Even if rates take a lot longer to go back up, this thread is about all the repossessions that are looming. Even with low rates many LLs rely on their tenants rent to keep up with mortgage payments, the benefit cap of £500 per week will lower rents and force many LL to get repossessed. Yes there is a big fuss over £400 cap on housing benfit alone. If total benefits are capped at £500 wk then how much can go on rent so the family can still live on what is left?

At the moment these families get way more than £500 total benefits. Admitidly most of it goes to their LL. But after the £400 housing benfit goes to their LL they still get hundreds in other benfits depending on how many kids they have.

When the £500 cap comes in, many families will have to move out of London, leaving more supply and less demand there.

The auction houses will be full of repossessions.

moneyinmypocket

Don't confuse repos = cheap house prices

JonnyBravo

Mortabrey wrote: »

Even if rates take a lot longer to go back up, this thread is about all the repossessions that are looming. Even with low rates many LLs rely on their tenants rent to keep up with mortgage payments, the benefit cap of £500 per week will lower rents and force many LL to get repossessed. Yes there is a big fuss over £400 cap on housing benfit alone. If total benefits are capped at £500 wk then how much can go on rent so the family can still live on what is left?

At the moment these families get way more than £500 total benefits. Admitidly most of it goes to their LL. But after the £400 housing benfit goes to their LL they still get hundreds in other benfits depending on how many kids they have.

When the £500 cap comes in, many families will have to move out of London, leaving more supply and less demand there.

The auction houses will be full of repossessions.

67,000 households will be affected.
Average impact of £83/week, but with a median effect of £56/wk due to the skew of fewer larger reductions.
54% of all affected households in Greater London.

It'll have an impact but hardly devastating for the market as a whole IMO.

RUN_RABBIT_RUN

Mortabrey wrote: »

The auction houses will be full of repossessions.

let me guess - everything will be ok once all the reposessions are cleared out, and interest rates are back up to normal levels?

another one of darth vaders sock puppet army :T

PaulF81

Can I ask why do rates have to return to historic averages? Which law of nature states this will happen, and what's not to say 0.5%~2% isn't the new status quo?

paulmapp8306

Mortabrey wrote: »

Even if rates take a lot longer to go back up, this thread is about all the repossessions that are looming. Even with low rates many LLs rely on their tenants rent to keep up with mortgage payments, the benefit cap of £500 per week will lower rents and force many LL to get repossessed. Yes there is a big fuss over £400 cap on housing benfit alone. If total benefits are capped at £500 wk then how much can go on rent so the family can still live on what is left?

At the moment these families get way more than £500 total benefits. Admitidly most of it goes to their LL. But after the £400 housing benfit goes to their LL they still get hundreds in other benfits depending on how many kids they have.

When the £500 cap comes in, many families will have to move out of London, leaving more supply and less demand there.

The auction houses will be full of repossessions.

Cant see it TBH. A cap of £500 ?? thats per week - so £2000 per month ... TAx Free, so the equivilant of (just under) £32k per year income for those working.

seriously - an incom eat that level will only affect a tiny % of perople in the grand scheme of things, and while rent in certain areas of London and the surrounding area may go down a little - it wont go dowm much. people are SERIOUSLY over sestimating the effect of benefit caps on the market as a whole.

Its estimated to affect around 87,000 families? what % of the total is that - tiny. Of those 87,000 the vast majority will see aonly a small reduction so will cope.

RUN_RABBIT_RUN

PaulF81 wrote: »

Can I ask why do rates have to return to historic averages? Which law of nature states this will happen, and what's not to say 0.5%~2% isn't the new status quo?

the current rates are considered to be at an 'emergency' level reflecting the state of the financial sector and the wider economy.

there's no law to say that rates will go up, it all rather depends how quickly the economy recovers. at the moment the markets don't think we'll see a rise until at least 2017 -

http://www.thisismoney.co.uk/money/news/article-2151147/No-base-rate-rise-2017-say-markets-eurozone-crisis-batters-British-economic-prospects.html