Mortgage holidays extended for up to six months

[scooterscot]

Reading the small print, the tax payer is not stepping in. the borrow has to pay accumulated interest on the outstanding amount ie interest upon interest. The borrower has to pay the outstanding amount at the end of six months. However, the borrower may come to a repayment agreement with the lender but this is not guaranteed. There will be a lot of mortgage repossessions at the end of the term. Be ready for a 20 year Brexit and covid recession.

The borrowers will never pay off the accumulated interest. They'll be long dead, house sold off during deflationary collapse to pay off the debt. Meanwhile the loss in mortgage income has to be paid. Without that money coming into the bank on a monthly basis - banks will collapse without it.

The debt the bank accumulates in unpaid mortgages becomes an increasingly onerous expense. As deflation hits the loans become larger than the value of the house. Now since we're not in a capitalistic system anymore the government will organise an event to prevent home owners defaulting. Likely we'll see a bail in, i.e. a haircut from savings of anything over £50k say to pay down the debts on those loans. This is already happening through QE for some years now, it is the number one reason why house prices are increasing. Without capitalism, we'll see QE in reverse, which is a bail in.

Exciting stuff.

[Paralytic]

The borrowers will never pay off the accumulated interest. They'll be long dead, house sold off during deflationary collapse to pay off the debt. Meanwhile the loss in mortgage income has to be paid. Without that money coming into the bank on a monthly basis - banks will collapse without it.

The debt the bank accumulates in unpaid mortgages becomes an increasingly onerous expense. As deflation hits the loans become larger than the value of the house. Now since we're not in a capitalistic system anymore the government will organise an event to prevent home owners defaulting. Likely we'll see a bail in, i.e. a haircut from savings of anything over £50k say to pay down the debts on those loans. This is already happening through QE for some years now, it is the number one reason why house prices are increasing. Without capitalism, we'll see QE in reverse, which is a bail in.

Exciting stuff.

So, it's all conjecture and the government is not, as you previously stated, paying the mortgages of those taking payment holidays.

You should have spent some of that $20K you were scammed out of with your Technical Analysis/crayons course on some basic financial education. Have you managed to comprehended the difference between a stock purchase and a cash purchase yet?

[BlueSharp]

This isn't happening.

£80 billion has been spent propping up households via furlough and help for the self-employed that is in addition to mortgage holidays and no evictions. These household bailouts as well as the Bounce back loan being used to grow BTL ltd's has produced this perverse situation where the greatest recession of our time has driven house prices up!

How many of people above are not defaulting on their mortgages because of the above bailouts?

[scooterscot]

This isn't happening.

That's cute.

[scooterscot]

£80 billion has been spent propping up households via furlough and help for the self-employed that is in addition to mortgage holidays and no evictions. These household bailouts as well as the Bounce back loan being used to grow BTL ltd's has produced this perverse situation where the greatest recession of our time has driven house prices up!

How many of people above are not defaulting on their mortgages because of the above bailouts?

Exactly.

And that's just one of many ways the taxpayer is funding homeowners.

[AtW]

Exactly.

And that's just one of many ways the taxpayer is funding people whose house is owned by banks.

FTFY

[Mordac]

The borrowers will never pay off the accumulated interest. They'll be long dead,

We are talking a few hundred pounds at most (interest at very low rates on deferred repayments), maybe a couple of thousand on higher loans. In most cases these can be added on to the end, and mortgages will take c.6 months or so longer to repay in full.

That's assuming they keep their jobs, of course...

[scooterscot]

FTFY

And who owns the banks?

[Paralytic]

We are talking a few hundred pounds at most...

Hey, don't knock a few hundred pounds. Scoots made that negative loss on his Centrica emotional trade and still crows about it!

[scooterscot]

We are talking a few hundred pounds at most (interest at very low rates on deferred repayments), maybe a couple of thousand on higher loans. In most cases these can be added on to the end, and mortgages will take c.6 months or so longer to repay in full.

That's assuming they keep their jobs, of course...

A few hundred pounds and people are having to take payment holidays?!

Quite a statement you have there... interest rate lowest ever and there's no savings for a rainy day.