Mortgage holidays extended for up to six months

[AtW]

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.

Mortgage ‘holidays’ granted to 1.9 million homeowners

That’s what, 15% of all mortgages at best? Drop in rates allowed banks not to pay any money to savers, whilst overdraft rates stay at like 40%

[TwoWolves]

Under normal circumstances it's quite easy to get a mortgage holiday, just write to the lender and ask. If you have a good reason and a plan to resume payments in the near-term they will be fine about it.

However, when there are hundreds of thousands doing it at once the banks have a problem, which is why the government and the BoE are stepping in.

The overall debt is already un-payable and most banks actually became insolvent [again] in late 2019 before the pandemic even hit.

[AtW]

most banks actually became insolvent [again] in late 2019 before the pandemic even hit.

Very nice alternative facts

[scooterscot]

Source?

My goodness... where have you been? Where do you think all that QE is going? The local food bank? Infrastructure projects?

I think if this was happening in Germany with debt being enforced upon people, they'd be burning down buildings.

[TheGreenBastard]

My goodness... where have you been? Where do you think all that QE is going? The local food bank? Infrastructure projects?

I think if this was happening in Germany with debt being enforced upon people, they'd be burning down buildings.

Stop being so emotional and provide the man some sources.

[northernladuk]

If you can't afford to pay for your home - move.

I'd say that's close to the dumbest thing you've ever said but there are so many contenders I just can't be sure.

[mattster]

My goodness... where have you been? Where do you think all that QE is going? The local food bank? Infrastructure projects?

I think if this was happening in Germany with debt being enforced upon people, they'd be burning down buildings.

So that's a no, then?

[fullyautomatix]

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

So explain how the state is taking an equity stake in the property of people who are taking a mortgage holiday ?

This is between the bank and the mortgage payer. How is the state involved ?

[scooterscot]

So explain how the state is taking an equity stake in the property of people who are taking a mortgage holiday ?

This is between the bank and the mortgage payer. How is the state involved ?

https://www.contractoruk.com/forums/...ml#post2825410

That parts that naffs me off is the tax payers a stepping in at the height of the bubble. The very tip of Everest. Collecting all the sh$t right before the mountain disappears beneath their feet.

[ChimpMaster]

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.

Well said.

Renters are being told that they cannot be evicted - I have friends working in CAB, who have confirmed they actually tell tenants to stay put (much like councils do), because landlords won't be able to evict them for 18 months (i.e. once you actually get a court date and arrange bailiffs etc).

So renters get months of free accommodation, and the property owner only gets a delayed loan repayment plan - they aren't 'let off' from paying anything back. And that delay means higher loan repayments and a black market on their credit worthiness. I know a number of people who have been refused mortgages based on the fact that they took a payment holiday due to Covid.

So a landlord will not take a payment holiday unless it is the absolute last resort.

What the government should do is create a loan programme for tenants - which has been put in place in Wales. This would give everyone more confidence in the system and not cause issues between tenants and landlords.