Mortgage holidays extended for up to six months

[scooterscot]

Madness.

If you can't afford to pay for your home - move. Why is the tax payer stepping in? A mortgage is a private contract between individual and the bank, nothing to do with the state.

Effectively the state is taking an equity position in your home.

Mortgage payment holidays are being extended for homeowners financially affected by the pandemic.

The scheme had been due to come to an end on Saturday.

Borrowers who have not yet had a mortgage holiday can request from their lender a pause in repayments, that can last up to six months.

Those who have had their payments deferred already, can extend their mortgage holiday until they reach the six-month limit.

During this period interest will still accrue on what borrowers owe.

The changes form part of a new package of financial support measures announced by the government as England heads into a second coronavirus lockdown on Thursday.

Last week, a study by the Joseph Rowntree Foundation found that 1.6 million households - or a fifth of all British mortgage-holders - were worried about paying their mortgage over the next three months.

Borrowers who have already reached the maximum six-month mortgage holiday and are still facing difficulty making repayments, are being advised by the FCA to speak to their lender about a tailored support plan.

Mortgage holidays extended for up to six months - BBC News

[AtW]

Makes sense since the last thing we need now is banking crisis

[GigiBronz]

So now we have a two tier society: some have to pay rent and struggle with financial difficulties the other get indefinite mortgage holidays.

Cool, I think I’ve heard this before in history. In feudalism.

[ladymuck]

How is the government taking a stake in your home? They're not guaranteeing anything are they? They're not paying the mortgage for you.

[fullyautomatix]

Madness.

If you can't afford to pay for your home - move. Why is the tax payer stepping in? A mortgage is a private contract between individual and the bank, nothing to do with the state.

Effectively the state is taking an equity position in your home.




Mortgage holidays extended for up to six months - BBC News

You are likely the least knowledgeable poster on this board. It is nothing but a mortgage holiday. Banks have been offering this for ages. Nothing changes, you still pay the same amount that you owe to the bank as before, in fact you will end up paying a bit more. It is not free money nor is the state taking an equity position in anybody's home. How bizarre of you to say that!

[AtW]

Property owners got property as collateral, they just effectively extended credit, that’s all

[ladymuck]

So now we have a two tier society: some have to pay rent and struggle with financial difficulties the other get indefinite mortgage holidays.

Cool, I think I’ve heard this before in history. In feudalism.

It would be nice if landlords taking a mortgage break allow their tenants a rent break. Some will, such as a friend of mine who has offered help to her tenants, but a lot won't.

[clearedforlanding]

So now we have a two tier society: some have to pay rent and struggle with financial difficulties the other get indefinite mortgage holidays.

Cool, I think I’ve heard this before in history. In feudalism.

Agreed. It is absolutely absurd that renters are unsupported.

[AtW]

Agreed. It is absolutely absurd that renters are unsupported.

Who would pay for it?

Mortgage holidays are paid by people who get them

[fullyautomatix]

Agreed. It is absolutely absurd that renters are unsupported.

With renters, its not so straight forward. I think they stopped evictions during lockdown as a safety net. That should allow someone to skip paying rent and still have a roof over the head.

If the landlord has a mortgage on the house, he can get the mortgage holiday and can sustain no rent coming in. If the landlord has no mortgage, he still can sustain no rent coming in.