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  • #1

    Homeowners could be hit with interest on mortgage support lifeline

    Homeowners could be hit with interest on mortgage support lifeline

    This is a duplicate of the Blog Entry made on 3rd March 2014 19:14.

    *as well as giving up stake in their home* * *Unemployed homeowners can claim help with mortgage interest * * *Government considering clawing...

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    Tags: arrears, benefits, capital, cash, charges, claim, council, debt, dwp, fee, fees, financial, free, government, help, home, homeowners, housing, interest, investment, labour, life, loan, money, monthly, mortgage, mortgages, mp's, paid, pay, payments, penalty, private, property, rate, repossession, security, size, social, support, unemployed
  • #2
    Re: Homeowners could be hit with interest on mortgage support lifeline

    So, helping you in one hand and taking it back from you with a bigger one....
    When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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    • #3
      Re: Homeowners could be hit with interest on mortgage support lifeline

      Oddly enough there's part of this proposal which I like. Not the bit about 6% interest obviously.

      The idea that the Government should step in to pay your mortgage when you're in trouble so that you don't lose the roof over your head is right. The idea that you should pay the money back when you eventually sell the property seems fair to me


      The Government isn't asking you to sell up and pay up as soon as you're on your feet, it just wants back the money it lent you when you were on your uppers when you cash in on your investment which they helped to preserve.

      Legal Aid has always operated like that. I fought a repossession many years ago with my lawyer getting paid by Legal Aid. They slapped a statutory charge on my home. When I sold up twelve years later I had to pay them back.

      I assume if you sell with negative equity they won't get back a penny. I need to read the whole article.

      I don't agree with charging interest though because in most cases the lender will have added considerable penalty charges along the way especially since the DWP mortgage payments are normally lower than the actual monthly payments so arrears start to mount up .

      Perhaps this proposal is to act as a disincentive for homeowners who thinks they can spend years in a property being funded by the Government and then walk away with a fortune when it goes up in value when it's eventually sold at a profit.

      Oh dear, I'm beginning to sound like my right-wing father
      Last edited by PlanB; 4 March 2014, 16:18.

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      • #4
        Re: Homeowners could be hit with interest on mortgage support lifeline

        Some good points there PlanB; as you say, its a better solution than someone loosing their home.
        When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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        • #5
          Re: Homeowners could be hit with interest on mortgage support lifeline

          Do those on housing benefit have to pay that benefit back and yes I know that is being cut but it is not the same and the government getting an 8% return when the rate of SMI is 3.63% is a bit steep.

          Oh and lets not forget the very mp's proposing this are hardly squeaky clean

          Comment

          • #6
            Re: Homeowners could be hit with interest on mortgage support lifeline

            Originally posted by pompeyfaith View Post
            Do those on housing benefit have to pay that benefit back
            I've not seen that rumoured yet although the cynic in me fears that will be the next proposal.

            I'm trying to look at this as a business deal rather than a social or moral responsibility. Perhaps the Government feel that if they make a financial investment in your business (i.e. pay the interest on your loan which supports an increasing asset) then they should get a return on that investment.

            I would like to see a 'free period' such as the first two years which would sort out those who are genuinely in need of help to get back on their feet from the workshy who feel it's their right to have handouts indefinitely.

            I've voted labour all my life so please don't think I'm selling-out all of a sudden. I simply feel that there's a lot of people out there taking the piss which is spoiling it for the deserving cases.

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            • #7
              Re: Homeowners could be hit with interest on mortgage support lifeline

              Not knocking you Plan B just raising the concerns as I see it, however I did take a moral stance when I became entitled to SMI and decided not to claim, why well the decision to buy my home was mine and mine alone so felt it was my responsibility to pay for it and especially as I had already grabbed the 60% right to buy discount.

              Yes maybe I would be bit better off now had I claimed it but then I lose the satisfaction of being able to say all paid for by me and sticking my finger up to Cameron and his henchmen!

              What a shame our MP's do not have the same high morals

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              • #8
                Re: Homeowners could be hit with interest on mortgage support lifeline

                Let's look at this from a different perspective.



                You work had to buy your own house and then lose your job.


                The government will only pay the interest part of your mortgage leaving you to find the capital payment yourself out of your JSA, unless your lender will allow you to pay the interest only until you can find a new job, and then the government will claim back anything they pay for you by having a charge against your house.

                But, If you decide to sell your house, or have it repossessed, and move into a rented property then the government will happily pay, often inflated, rents to private landlords so they can pay their mortgages on the house you rent, which is normally more than what your own mortgage would have been, and they have no charge against the landlords so they can claim back all the benefits they pay on your behalf.


                Does that make any sense at all?


                I am starting to believe that unless you have a cast iron job security for the lifetime of your mortgage then there is really no point in trying to get ahead in life by buying your own house because if you lose your job and get repossessed then everything you have paid towards the capital/repayment part of your mortgage will be robbed from you by the lenders adding fees, charges, and interest to your mortgage and then selling your house for whatever they decide to sell it for to cover what they say you owe them, often leaving you with nothing to show for the years you did pay your mortgage.

                Comment

                • #9
                  Re: Homeowners could be hit with interest on mortgage support lifeline

                  Originally posted by Ianm View Post
                  But, If you decide to sell your house, or have it repossessed, and move into a rented property then the government will happily pay, often inflated, rents to private landlords so they can pay their mortgages on the house you rent, which is normally more than what your own mortgage would have been, and they have no charge against the landlords so they can claim back all the benefits they pay on your behalf.
                  I have a foreboding feeling i am going to start a row here, but....
                  Some people say this is to keep the big people at the top and the reason Housing Benefit will never be, well, truly sorted.


                  Does that make any sense at all?


                  Originally posted by Ianm View Post
                  I am starting to believe that unless you have a cast iron job security for the lifetime of your mortgage then there is really no point in trying to get ahead in life
                  I don't believe there is such a thing mate. There was a time when people would consider Council and Civil servants "a job for life" although that isn't true any more.

                  Don't know what the answer is to be honest :-(
                  When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


                  I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                  If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                  Comment

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