Helping Mortgage holders
- Thread starter Redwurzel
- Start date
sherlock
Well-known member
Helps with what? It's just a load of words justifying the behaviour of businesses to the detriment of customers.
Bottom line, big businesses are making record profits during a cost of living crisis. Shouldn't be allowed and the government should be legislating to stop it.
Small businesses are screwed because most people will have no discretionary spending power to buy what they are selling.
Fat_Dragon
Well-known member
Politics latest: Nigel Farage could 'devastate' Tories after welcoming MP's 'huge' defection to his party
Keir Starmer has spoken exclusively to Politics Hub With Sophy Ridge, showing rare emotion while speaking about his relationship with his father. Elsewhere, Reform's Nigel Farage has welcomed MP Lee Anderson's defection from the Tories. Listen to Politics At Jack And Sam's as you scroll.
news.sky.com
Last edited:
The_Lizards_Jumpers
Well-known member
That last statement is horrific. To paraphrase "we only really care about those willing to get themselves in debt to the banks and keep the capitalist machine turning, we don't give a stuff about renters who could also lose their own homes through unscrupulous capitalist landlords who hike rents to ensure they're making the same margin as before..."
The perfect example of why one should be very wary of the sentence 'Hello I am from the government and I am here to help '...
So let's take a look at this 'help' 12 months helps the banks doesn't it.
Helps them to keep liabilities off the books for as long as possible whilst charging further interest to occupants that can't and over time will just stop paying.
12 months helps government with repossession statistics as over time it smooths out the curve nicely and the headlines will have been and gone.
It doesn't help the person getting repossessed if they're a struggling family it will be many lost night's sleep to prolong the agony which then inevitably occurs 12 months later to then find out the property is worth less than had they just sold it and cut losses when they had the chance.
The rest is window dressing so there it is.
Edit to add:- This is actually devilishly and darkly genius I have to give the b****d's credit... So let's say if left to own devices you'd be seeing repossession spike in probably 8-10 months from now. Well this now changes the spike to let's say 18-24 months and who will be in power... Of course it will be Labour.
It will further just create a situation where we get a second wave of falling prices following the first wave hitting the next 12 months.
So let's take a look at this 'help' 12 months helps the banks doesn't it.
Helps them to keep liabilities off the books for as long as possible whilst charging further interest to occupants that can't and over time will just stop paying.
12 months helps government with repossession statistics as over time it smooths out the curve nicely and the headlines will have been and gone.
It doesn't help the person getting repossessed if they're a struggling family it will be many lost night's sleep to prolong the agony which then inevitably occurs 12 months later to then find out the property is worth less than had they just sold it and cut losses when they had the chance.
The rest is window dressing so there it is.
Edit to add:- This is actually devilishly and darkly genius I have to give the b****d's credit... So let's say if left to own devices you'd be seeing repossession spike in probably 8-10 months from now. Well this now changes the spike to let's say 18-24 months and who will be in power... Of course it will be Labour.
It will further just create a situation where we get a second wave of falling prices following the first wave hitting the next 12 months.
Last edited:
ThePrisoner
Well-known member
Why would landlord Jeremy Hunt, member of a party of which 25% of their MPs are landlords, not do anything to help renters? It's a tough onePolitics latest: Nigel Farage could 'devastate' Tories after welcoming MP's 'huge' defection to his party
Keir Starmer has spoken exclusively to Politics Hub With Sophy Ridge, showing rare emotion while speaking about his relationship with his father. Elsewhere, Reform's Nigel Farage has welcomed MP Lee Anderson's defection from the Tories. Listen to Politics At Jack And Sam's as you scroll.
View attachment 59240
coluka
Well-known member
In my view renters should now be at the forefront of help through introducing rent controls and excess profiteering from some landlords. Profiteering is at the very heart of the cost of Living crisis generally too. I can understand food and other goods rising with inflation, but wages have not risen through inflation, energy and fuel may explain why some goods have risen a little more and the Ukraine war too relating to things like cereals bread etc.
However, the price rises triggered over the last 2 years has also encouraged greedy businesses to make a fast buck knowing their is no controls to stop them. Fuel costs were ramped far higher than needed, you only need to look at the high cost of diesel v petrol. Only after much criticism via organisations like the RAC and other motor friendly organisations has that been addressed.
Cartels are operating in towns and cities with there being little difference in pricing in certain areas. They always used to use transportation as an excuse why it was a little higher in some areas than others. Over the last 6-9 months fuel in Whitby has been considerably cheaper (8p-10p a litre at one time) than anywhere in York, Hull, Scarborough, Bridlington and on Teesside, it is my understanding that one local private garage felt it was unfair, reduced prices and then boom, so did all the others (there aren’t many tbf).
Things have finally somewhat settled down thanks to pressure from various sources. Today just comparing Sainsbury via petrol prices app:
Boro Petrol 136.9, Diesel 140.9
Whitby Petrol 134.9, Diesel 141.9
Scarborough Petrol 140.9, Diesel 142.9
I get there will be some small differences due to restock prices etc but the petrol per litre difference seen a little out of kilter Diesel less so. Well done to the Whitby garage that prompted the reduction in your town. The truth is though, they like most businesses are free to charge what they want and the consumer has to just suck it up unless someone breaks ranks like in Whitby and played fair.
However, the price rises triggered over the last 2 years has also encouraged greedy businesses to make a fast buck knowing their is no controls to stop them. Fuel costs were ramped far higher than needed, you only need to look at the high cost of diesel v petrol. Only after much criticism via organisations like the RAC and other motor friendly organisations has that been addressed.
Cartels are operating in towns and cities with there being little difference in pricing in certain areas. They always used to use transportation as an excuse why it was a little higher in some areas than others. Over the last 6-9 months fuel in Whitby has been considerably cheaper (8p-10p a litre at one time) than anywhere in York, Hull, Scarborough, Bridlington and on Teesside, it is my understanding that one local private garage felt it was unfair, reduced prices and then boom, so did all the others (there aren’t many tbf).
Things have finally somewhat settled down thanks to pressure from various sources. Today just comparing Sainsbury via petrol prices app:
Boro Petrol 136.9, Diesel 140.9
Whitby Petrol 134.9, Diesel 141.9
Scarborough Petrol 140.9, Diesel 142.9
I get there will be some small differences due to restock prices etc but the petrol per litre difference seen a little out of kilter Diesel less so. Well done to the Whitby garage that prompted the reduction in your town. The truth is though, they like most businesses are free to charge what they want and the consumer has to just suck it up unless someone breaks ranks like in Whitby and played fair.
Andy_W
Well-known member
The perfect example of why one should be very wary of the sentence 'Hello I am from the government and I am here to help '...
So let's take a look at this 'help' 12 months helps the banks doesn't it.
Helps them to keep liabilities off the books for as long as possible whilst charging further interest to occupants that can't and over time will just stop paying.
12 months helps government with repossession statistics as over time it smooths out the curve nicely and the headlines will have been and gone.
It doesn't help the person getting repossessed if they're a struggling family it will be many lost night's sleep to prolong the agony which then inevitably occurs 12 months later to then find out the property is worth less than had they just sold it and cut losses when they had the chance.
The rest is window dressing so there it is.
Edit to add:- This is actually devilishly and darkly genius I have to give the b****d's credit... So let's say if left to own devices you'd be seeing repossession spike in probably 8-10 months from now. Well this now changes the spike to let's say 18-24 months and who will be in power... Of course it will be Labour.
It will further just create a situation where we get a second wave of falling prices following the first wave hitting the next 12 months.
Think you've saw through that like I did and it's not help, all it's doing is kicking the can down the road, or giving the debt snowball time to turn into a debt snowman. You're also right that it's shuffling bad news into Labours tenure, but this is also practically an admission that they know they're losing the next GE.
People will just build up arrears and then when 12 months hits, the bank will repossess, pocket the deposit and sell the house on the cheap, and the house will have likely lost a chunk of value in that time too.
This might limit house price drops to a degree for the initial phase, but just means they will make up the rest of the drop happen later.
Doesn't help renters either or soon to be first-time buyers, just keeps the market juiced up with steroids.
They need to do something to stop landlords from making money, and being immune to these rises which they will pass on, which renters won't be able to get away from.
Some wild ideas:
- Cap rents to the interest of the mortgage (no capital payments allowed) the house is secured on, so the landlords have to dig into equity to fund the monthly gap, or be foreced sell up.
- Have rent set by property value, but not an amount which takes the **** and covers 25-year mortgage at 8%.
- Force landlords who have interest-only mortgages to sell up.
- Force landlords with more than one rental property, to sell up.
- Force anyone with more than one holiday let to sell up.
Boro in Devon
Well-known member
It appears that this is just a publicity stunt, it is nothing that the major lenders arent doing anyway.
The 12 months to repossession is a bit of a mixed benefit. In my experience, if you are struggling then you want out quickly to be able to move on. When I made the decisions to repossess, the mortgage holders used to thank us, for helping them as much as we could. I can back this up, my business went bust at the end of 2021 and the last six months have been awful as we are awaiting strike off, the communication from the "state" is very bad indeed.
I would be more worried about how the banks treat new applications. They could really stop the whole market. In this situation in my previous role I would be;
Remortgages - limit my exposure to high ltv remortgages. If you are above 60 % LTV, above a very conservative affordability or have much outstanding debt or have any missed payments on a credit file, you would not be accepted of if you did the rate would be very high. If you wanted to take another product with the same lender then again I would be reluctant to offer a decent product and would encourage you to go elsewhere.
Purchase mortgages - FTB's forget it, unless you have over 20% deposit. Single applicants, present a higher risk if you lose your income. Again I would only be doing business for movers at a low LTV, or for our existing mortgage holders trading down.
If politically the banks cant not offer products to everyone, they will try to put obstacles in the way. I did it once by slashing advisors commission and bonuses and filling the interview rooms with stationery.
Have any of the Mortgage Brokers found any problems with being able to place business recently ?
The 12 months to repossession is a bit of a mixed benefit. In my experience, if you are struggling then you want out quickly to be able to move on. When I made the decisions to repossess, the mortgage holders used to thank us, for helping them as much as we could. I can back this up, my business went bust at the end of 2021 and the last six months have been awful as we are awaiting strike off, the communication from the "state" is very bad indeed.
I would be more worried about how the banks treat new applications. They could really stop the whole market. In this situation in my previous role I would be;
Remortgages - limit my exposure to high ltv remortgages. If you are above 60 % LTV, above a very conservative affordability or have much outstanding debt or have any missed payments on a credit file, you would not be accepted of if you did the rate would be very high. If you wanted to take another product with the same lender then again I would be reluctant to offer a decent product and would encourage you to go elsewhere.
Purchase mortgages - FTB's forget it, unless you have over 20% deposit. Single applicants, present a higher risk if you lose your income. Again I would only be doing business for movers at a low LTV, or for our existing mortgage holders trading down.
If politically the banks cant not offer products to everyone, they will try to put obstacles in the way. I did it once by slashing advisors commission and bonuses and filling the interview rooms with stationery.
Have any of the Mortgage Brokers found any problems with being able to place business recently ?
WeeGord
Well-known member
It's been an incredibly difficult time recently but surprisingly not because business is slowing down, but because the raft of increases in interest rates often come with very little or even no notice.
Therefore I advise a client on a particular lender / rates, they take a day or so to think it over by which time the deal has gone and we're back to the start of the process but more importantly, their payment has gone up.