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Debate House Prices
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Lender forbearance becoming “a sick joke”
Comments
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If it is just paying your interest how is it helping you to buy when you come of smi you will be in the same position you were when you first went on it.
Ok, were going to have to go back to basics.
Say for instance someone had a mortgage of £600 a month. They find they can't afford that payment.
SMI comes along, removes all the interest, amd makes the payment £200 a month.
They can now afford £200 a month. However, they are at an obvious advantage to everyone else on their street who still has to pay their interest. Therefore SMI means they keep their home, their equity and any future equity, and the taxpayer chips in month after month.
I'm getting a little aghast and starting to lose patience on this thread. I honestly don't believe people can't see the difference between SMI paying for a PRIVATE ASSET and housing benefit paying for a SERVICE.
I'm bowing out, as it appears we could just be at arguing for arguments sake point here.0 -
Graham_Devon wrote: »Ok, were going to have to go back to basics.
Say for instance someone had a mortgage of £600 a month. They find they can't afford that payment.
SMI comes along, removes all the interest, amd makes the payment £200 a month.
They can now afford £200 a month. However, they are at an obvious advantage to everyone else on their street who still has to pay their interest. Therefore SMI means they keep their home, their equity and any future equity, and the taxpayer chips in month after month.
I'm getting a little aghast and starting to lose patience on this thread. I honestly don't believe people can't see the difference between SMI paying for a PRIVATE ASSET and housing benefit paying for a SERVICE.
I'm bowing out, as it appears we could just be at arguing for arguments sake point here.
How do you find the £200 if you have lost your job.
I get fed up with people who want people who have worked hard and then fallen on hard times thrown out of their homes in the hope it will cause a crash. While they are ok with people who have never worked getting their rent paid indefinitely.0 -
How do you find the £200 if you have lost your job.
I get fed up with people who want people who have worked hard and then fallen on hard times thrown out of their homes in the hope it will cause a crash. While they are ok with people who have never worked getting their rent paid indefinitely.
The point is that the person should have taken out insurance or put away some savings whilst they were working to cover such eventualities. It's called taking responsibility for oneself.0 -
I don't see what is special about houses as an asset class that they should be treated separately.
As is so often said on here, housing is a necessity but home ownership is not.
More often than not, IO mortgages are cheaper than rents, so it's cheaper forthe state to keep people in their homes than have them repossessed and put families into bedsits and BTL properties. If they ever do look at getting rid of SMI then I'm going to become a BTL landlord.0 -
How do you find the £200 if you have lost your job.
I get fed up with people who want people who have worked hard and then fallen on hard times thrown out of their homes in the hope it will cause a crash. While they are ok with people who have never worked getting their rent paid indefinitely.
Why does it matter how they find it?!
Does it alter the point?!
This isn't about wanting people thrown out of their homes for pities sake. I wish it would stop reverting to that spineless little argument every single time.0 -
It only pays the interest. I thought having an interest only mortgage was the same as renting?
This is where the 'bears' tie themselves in logic knots. They will argue till tey are blue in the face that IO mortgages are just 'renting from the bank' right up until it undermines their SMI argument and then they flip-flop and undermine their whole previous argument. Then they forget it all when the next IO mortgage discussion comes up.
It's amusing to watch.
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Graham_Devon wrote: »This isn't about wanting people thrown out of their homes for pities sake. I wish it would stop reverting to that spineless little argument every single time.
What is it about then?0 -
RenovationMan wrote: »What is it about then?
http://forums.moneysavingexpert.com/showpost.php?p=55094425&postcount=26
Just one of the many posts detailing what it's about that you appear to have missed?0 -
RenovationMan wrote: »This is where the 'bears' tie themselves in logic knots. They will argue till tey are blue in the face that IO mortgages are just 'renting from the bank' right up until it undermines their SMI argument and then they flip-flop and undermine their whole previous argument. Then they forget it all when the next IO mortgage discussion comes up.
It's amusing to watch.
Indeed.
Having an IO mortgage = renting.
But
Someone paying your IO mortgage is different to someone paying your rent.
Mind = blown.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
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