Tackling them debts

[AtW]

UK government borrowing rises unexpectedly in July



"The Treasury ran up a rare July deficit last month, raising doubts about the coalition's progress in tackling the black hole in Britain's public finances.

July traditionally sees a surplus as it is a strong month for tax receipts, with quarterly corporation tax payments due. But the Office for National Statistics said the government had to borrow £100m last month, compared with the £800m surplus it ran up in the same month last year.

Once the boost from banking the proceeds of the government's quantitative easing programme were excluded, the deficit increased to £500m.

Taking the first four months of the financial year together, the underlying picture was of a £36.8bn shortfall, up from £35.2bn over the same period in 2012-13."

Source: UK government borrowing rises unexpectedly in July | Business | The Guardian

[Doggy Styles]

What was you reason for posting this?

[AtW]

What was your reason for posting this?

[The Spartan]

Not very encouraging is it, I think it just goes to show how grave the problem really is. Still there's no miracle cure to the problem, so we'll see what happens next

[doodab]

Not very encouraging is it, I think it just goes to show how grave the problem really is. Still there's no miracle cure to the problem, so we'll see what happens next

I'd expect some sort of inflationary monetary policies of the sort that will justify my next renewal coming with a 20% hike.

[DimPrawn]

In other news.

Return of the interest-only mortgage - Telegraph

Rent your house from the bank.


It's all back to how it was. This govt are paying lip service to debt and are encouraging the banks rackup dubious debt ready for more money printing and bailouts.

There is no political will among LibLabCon to operate any other way, and to expect otherwise is frankly ludicrous.

[BrilloPad]

there's no miracle cure to the problem

hyper inflation. HTH

[The Spartan]

hyper inflation. HTH

It's not exactly a cure though is it BP

[Ticktock]

Who said a deficit being reported at this stage is accurate?

The data remains subject to revision. The £823m surplus recorded in July 2012 was originally reported as a deficit.

EDIT: So what the Guardian is saying is, "You know how last year a deficit was reported that then turned into an £800m surplus? Well look - there's a deficit this year." without, of course, acknowledging this.

[Power Mortgages Ltd]

In other news.

Return of the interest-only mortgage - Telegraph

Rent your house from the bank.


It's all back to how it was. This govt are paying lip service to debt and are encouraging the banks rackup dubious debt ready for more money printing and bailouts.

There is no political will among LibLabCon to operate any other way, and to expect otherwise is frankly ludicrous.

I love how the DT call it 'controversial interest only mortgages' as if interest only is now the devils doing.

Banks have tightened up their interest only lending criteria (too far in my opinion) because of a few instances where people took out interest only mortgages many years ago and chose to bury their heads in the sand favouring lower repayments each month to support better lifestyles and hoping that their future would change sufficiently so that they could repay the mortgage at a later day after they got that million pound a year salary they were destined to get or that inherritance from old aunt Ethel which never came in the end. Come the end of the 25 years when the banks came calling for their money back they then pleaded ignorance that they were unaware their mortgage was so cheap because they werent actually repaying the debt and called hardship at being forced to sell their family home and move out with very little equity (because of course they had remortgaged any equity gain the property had benefit from along the years to consolidate other debts, make home improvements or go on holidays etc).

The FSA or now FCA as they are known wanted to ensure that this couldnt happen and published guidelines for interest only lending to which lenders have interpretted in different ways. Those lenders (like Halifax for example) who enforced very strict criteria essentially making it impossible to get interest only unless you have a nailed on, water tight repayment vehicle which you can prove now pretty much stopped doing interest only over night and applications for interest only were then placed with those lenders who had a more liberal interpretation of the guidelines but after being bombarded with one main type of business (interest only) they had to tighten up their criteria realising their exposure to complaints regarding interest only was growing and each lender followed suit until we are left in a position now whereby interest only is simply not available above 75% at all and above 50% loan to value with most lenders you need to prove the water tight repayment vehicle. It is only where loan to value is below 50% that lenders will accept things like 'sale of mortgaged property' as the repayment vehicle and even then you normally need to have over £150k equity in the property.

The interest only mortgage with Clydesdale mentioned in the articel is a revolutionary one of a kind mortgage which is new to the market and had to go through rigorous tests and complaince through the FSA/FCA to be approved which they did.

The fact the mortgage reverts to repayment at the end of the initial 3 year interest only period means that the mortgage will not be a lifetime interest only mortgage which has been the problem in the past and I genuinely feel it serves a very good purpose for someone who may wish to keep the initial costs down whilst they get used to the costs of running a home (like first time buyers for example) or someone who know's their career path will see their income increase significantly in the coming years like trainee Doctors for example.

A lot of contractors have often favoured the interest only mortgage quite often alongside an offset mortgage as it provides that additional flexibility of making over payments as and when they wish to whilst keeping the monthly payment down in case of periods without contract as well as utilising the war chest by offsetting that against the mortgage. Sadly lenders interest only criteria has made it very difficult to now do this.