Mortgage holidays extended for up to six months

[TheGreenBastard]

Weird, why didn't you bring up Art. 240 §3 EGBGB?

[Mordac]

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.

Ignore Scooty, he's widely regarded as an idiot. I'm amazed we managed to export him, tbh.

[Mordac]

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.

Not if it's his only source of income.

[scooterscot]

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.

You are absolutely paying the mortgage, just via a circuitous route. The banks affected are largely owned by the state. Just like in America, UK banks are finding themselves in a position of increasing their equity in property by proxy. It happened to Lloyds back in 2008 when Halifax collapsed. The bank found themselves with a large unwanted mortgage book for stressed homeowners (if you can call them that with 95% mortgages). I'm rather surprised this is all forgotten and we're walking into the same situation again.

Whether you like it or not you're taxes are being used to gurantee overextended home owners:

PM sparks alarm with plan for 95% home loans

Taxpayers face being on the hook for billions of pounds’ worth of mortgages under a “generation buy” scheme being considered by the government to get young people on the housing ladder.

Boris Johnson is reported to have asked ministers to devise plans for long-term fixed-rate mortgages with a 5% deposit. This could require the government to take some of the risk from lenders through a form of state guarantee — sparking concern among mortgage experts.

Sunak planning to extend UK mortgage relief scheme

UK mortgage bank holiday - just ignore it, it's all nonsense - nothing to see here.

[scooterscot]

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!

Speaking of ill informed... this response is exactly what the government is hopping for. Can't see the wood for the trees.

[mattster]

Renters are already supported through universal credit, so they're getting more from the taxpayer than "owners" are towards their mortgages, which is nothing (mortgage support is now a loan payable on sale of the house).

The "mortgage holiday" is nothing more than the govt telling banks to give borrowers a payment holiday - no taxpayer involvement here. Unless you really need it, though, it's a bad idea; not only will your mortgage get bigger whilst you are not paying it, a few banks have already stated that they will be looking at whether or not a holiday was taken when considering future mortgage applications. At least one said this would result in an automatic "no", which could mean you end up on a vastly more expensive SVR deal if you are currently on a deal that ends after a few years (which most seem to, these days). That could easily be a doubling of any introductory rate.

[fullyautomatix]

Not if it's his only source of income.

He took a business risk and it hasn't paid off. Tough luck.

[AtW]

Not if it's his only source of income.

He still got property

[scooterscot]

Renters are already supported through universal credit, so they're getting more from the taxpayer than "owners" are towards their mortgages, which is nothing (mortgage support is now a loan payable on sale of the house).

The "mortgage holiday" is nothing more than the govt telling banks to give borrowers a payment holiday - no taxpayer involvement here. Unless you really need it, though, it's a bad idea; not only will your mortgage get bigger whilst you are not paying it, a few banks have already stated that they will be looking at whether or not a holiday was taken when considering future mortgage applications. At least one said this would result in an automatic "no", which could mean you end up on a vastly more expensive SVR deal if you are currently on a deal that ends after a few years (which most seem to, these days). That could easily be a doubling of any introductory rate.

This is what is supposed to happen. The state however is drawing up the shortfall for the banks lost income from mortgage payments via the tax payer. It is somewhat incredible how well this is being swept under the carpet.

Corruption in full view of the audience and they applaud. Rock on..

[mattster]

This is what is supposed to happen. The state however is drawing up the shortfall for the banks lost income from mortgage payments via the tax payer. It is somewhat incredible how well this is being swept under the carpet.

Corruption in full view of the audience and they applaud. Rock on..

Source?