Reply to: First Repossession by the Peoples' Bank

[ASB]

Re-mortgage with no job, then tell the lender they'd have to wait 9 months for their first payment anyway? This is exactly why ISMI fails - no bank would buy that (9 missed payments?). How many people do you think have savings to see them through 7 or 8 mortgage payments (not counting contractors, but average person earning an average or lower wage)? NL knew it would save them shedloads when they increased the qualifying term from 3 months to 9 months, at the start of their rule.

All it takes is a car accident or illness that keeps you out of work for a while - could happen to absolutely anyone and it does happen, every day of every week.

ISMI recipients average wages 20% run into arrears, lower wages 80% run into arrears.

This figures are regarded as encouraging (for what I wonder ).

However, the social policy is that people with mortgages should insure them against these sorts of things (never mind the often prohibitive cost and the fact that they rarely pay out).

I'm not against this in principal, I don't see why society (i.e. me) should fund the incautious or irresponsible. Equally I don;t see why tenants should be treated more favourably.

The problem is that the people who really suffer are those who do try and be responsible. As zeity said it's designed that way - and it truly is.

[SizeZero]

I stand corrected.

So a re mortgage to interest only would be the only option, given that there was enough equity in the property to make the lender interested.
shocking

Re-mortgage with no job, then tell the lender they'd have to wait 9 months for their first payment anyway? This is exactly why ISMI fails - no bank would buy that (9 missed payments?). How many people do you think have savings to see them through 7 or 8 mortgage payments (not counting contractors, but average person earning an average or lower wage)? NL knew it would save them shedloads when they increased the qualifying term from 3 months to 9 months, at the start of their rule.

All it takes is a car accident or illness that keeps you out of work for a while - could happen to absolutely anyone and it does happen, every day of every week.

[PAH]

Guess where the computers are sited in our wunnerful new PFI council building...

Guess why the street it's located on is named "Water Street"

They obviously bought some smarmy sales guy's pitch of water cooling at no extra cost.

[Diver]

Housing benefit only applies to tenants. Interest on mortgages is called ISMI and doesn't kick in for 39 weeks - I think this is still capped at the interest on 125,000 capital.

I agree with the general sentiment though, but it's not easy for that many people to get themselves in the postion where they can survive on 50 quid a week. If you do happen to have a chunk stashed with the intent of tiding you over until ISMI kick in that doesn't work. since once you move off UB it's means tested, so you have to spend that rather than getting any other benefit.

The system fails anybody who tries to be responsible.

I stand corrected.

So a re mortgage to interest only would be the only option, given that there was enough equity in the property to make the lender interested.
shocking

[BoredBloke]

I really think NL is trying to give the Tories all the bullets they could ever want. First you have the Tories raise the issue of taxing non-doms which Darling nicked and which he has been watering down ever since. Then a run on the bank. Now we have the treasurey appointing a non dom guy to run it who himself appoints another as his number 2. How they managed to neatly tie 2 of Darlings problems up into one neat bundle is pretty good even for this lot

[ASB]

I don't have any mortgages on my properties

There is no reason to lose your home if you are out of work. our taxes pay for the governments housing benefits handout, that pays the interest on your mortgage while you are unemployed, it is up to you to renegotiate an interest only or extended mortgage that you can afford to cover.

Alternately, you take out insurance to cover the eventuality.

Housing benefit only applies to tenants. Interest on mortgages is called ISMI and doesn't kick in for 39 weeks - I think this is still capped at the interest on 125,000 capital.

I agree with the general sentiment though, but it's not easy for that many people to get themselves in the postion where they can survive on 50 quid a week. If you do happen to have a chunk stashed with the intent of tiding you over until ISMI kick in that doesn't work. since once you move off UB it's means tested, so you have to spend that rather than getting any other benefit.

The system fails anybody who tries to be responsible.

[Diver]

With their acuity I'm surprised they noticed any difference.

[bogeyman]

Glad I don't work in the basement at GCHQ. they were underwater in the floods

With their acuity I'm surprised they noticed any difference.

[Bagpuss]

I'm just waiting for all these cheap properties to flood the market

Should be loads by year end, as the government tries to offload the NR loanbook by raising mortgage rates.

[Diver]

Glad I don't work in the basement at GCHQ. they were underwater in the floods

[bogeyman]

If I told you, I would have to kill you

New one or old one?

p.s. your avatar looks disturbingly like Evan Davies. It's not nice.

[Diver]

Do you really work at GCHQ?

If I told you, I would have to kill you

[bogeyman]

I'm just waiting for all these cheap properties to flood the market

Do you really work at GCHQ?

[PAH]

I don't have a mortgage either. No property!

I'm free to roam the world, I just choose not to for the moment.

[Diver]

Me neither.

Hey! Let's pull up the ladder Jack

I'm just waiting for all these cheap properties to flood the market