Mortgage holidays extended for up to six months

[Mordac]

And who owns the banks?

Shareholders. The UK government holds about two thirds* of RBS and about one third* of Lloyds-HBOS, which is what I assume you were alluding to.

*Figures subject to being wildly inaccurate, which Scooty knows all about...

[AtW]

And who owns the banks?

Steakholders - rump, sirloin and a few Côte de boeuf

[Mordac]

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.

You really are a daft pillock. That is the extra interest incurred by deferring a period of repayments. Did you teach Diane Abbott maths, or was it the other way round?

(The poor sods with no savings are probably those who followed your stock tips...)

[GigiBronz]

You really are a daft pillock. That is the extra interest incurred by deferring a period of repayments. Did you teach Diane Abbott maths, or was it the other way round?

(The poor sods with no savings are probably those who followed your stock tips...)

Not if we get negative interest rates in the future...

[Paddy]

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.

What a load of bollox.
You are claiming to be wiser that multibillion pound lenders with years of experience. Firstly, in the current c19 situation, interest and the accumulated payments must be paid at the end of the six months unless otherwise arranged (which is unlikely). Secondly, mortgage T&Cs specifically state that accumulated interest, fees and penalties must be paid before the end of the mortgage term.

Furthermore, the mortgage T&Cs state the the lender can re-call the loan at any time. If equity is not enough then expect a letter of intent to re-posses the property.

[Whorty]

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.

Even if what you was saying was true (which it isn't), how would this impact you as a none UK tax payer?

For someone who claims to understand finance/money, you have absolutely no knowledge whatsoever! This is quite simply the UK Gov, telling banks to offer their customers a payment holiday. This will result in interest to be rolled forward so the house holder will actually be slightly worse off.

It's really simple - how can you not see this?

[Whorty]

Mortgages bailouts are the new stock market bailout. House prices are going to the moon if you don't have to pay the mortgage off!


The 2008 stock market crash was triggered by subprime lending and underestimating the risk of that 1 in a 100-year event. Well here it is and the government are bailing out the banks again by paying off those subprime loans.

No they are not. UK gov are not (currently) bailing out any banks or taking on any home loans. The mortgage holiday's aim is to avoid this by giving people breathing space and reduce the volume of repo's.

You and Scooty really need to read more and type less

[BlueSharp]

No they are not. UK gov are not (currently) bailing out any banks or taking on any home loans. The mortgage holiday's aim is to avoid this by giving people breathing space and reduce the volume of repo's.

You and Scooty really need to read more and type less

If the gov are paying 80 billion in furlogh and other job schemes to give sub prime borrowers breathing space to stop repos how is that not bailing out subprime loans? The gov have also put a freeze on credit cars, personal loans as well.

I can't see this support package ending any time soon, even if a vaccine is found and a t best gives one year immunity, it will take years for people to get back on their feet without the gov subprime bailouts continuing.

The actions of the gov are to protect the people as well as try and prevent another sub prime crisis.

[jayn200]

If the gov are paying 80 billion in furlogh and other job schemes to give sub prime borrowers breathing space to stop repos how is that not bailing out subprime loans? The gov have also put a freeze on credit cars, personal loans as well.

I can't see this support package ending any time soon, even if a vaccine is found and a t best gives one year immunity, it will take years for people to get back on their feet without the gov subprime bailouts continuing.

The actions of the gov are to protect the people as well as try and prevent another sub prime crisis.

Furlough scheme has nothing to do with mortgages, loans, credit cards unless I am not understanding something.

Individuals with 0 debt who are renting are also getting furloughed.

[scooterscot]

Furlough scheme has nothing to do with mortgages, loans, credit cards unless I am not understanding something.

This is so cute.