Mortgage holidays extended for up to six months

[hugebrain]

Again, where is this mortgage bailout?

Interest rates are being artificially held below inflation, so mortgage holders are being subsidised through the time value of money. They make money just by being in debt.

Quantitative easing. Every pound printed is a direct transfer from a hard-working contractor to an idle landlord or other debtor.

£50,000 government backed loans to BTL, stamp duty holiday, 95% government mortgage guarantees, mortgage holidays: all a gift to debtors.

60% taxes for working compared to less than zero taxes (after housing benefit) for BTL.

Basically the whole thrust of government spending is aimed at increasing the value of Sunak’s ten houses. (OK, also giving undeclared handouts to his wife and vast quantities of money to his father in law, but that’s another story).

Money that could have fixed the health service, fed the hungry, is instead being aimed at making the rich richer in a vast mortgage bailout.

[mattster]

So your argument is that they are try to keep house prices up, which I agree with you on. They've been doing it (quite successfully) since they brought in Help To Buy and I have no doubt they'll think of plenty of other ruses to keep the plates spinning.
That still isn't a mortgage bailout though.

[Whorty]

Interest rates are being artificially held below inflation, so mortgage holders are being subsidised through the time value of money. They make money just by being in debt.

Quantitative easing. Every pound printed is a direct transfer from a hard-working contractor to an idle landlord or other debtor.

£50,000 government backed loans to BTL, stamp duty holiday, 95% government mortgage guarantees, mortgage holidays: all a gift to debtors.

60% taxes for working compared to less than zero taxes (after housing benefit) for BTL.

Basically the whole thrust of government spending is aimed at increasing the value of Sunak’s ten houses. (OK, also giving undeclared handouts to his wife and vast quantities of money to his father in law, but that’s another story).

Money that could have fixed the health service, fed the hungry, is instead being aimed at making the rich richer in a vast mortgage bailout.

The mortgage holiday is not a bailout; those using it will still owe the money. They will still have to pay the mortgage and all interest. Why is this so hard for you guys to understand?

As for the NHS, it will be rosie at the end of the year when it starts to get £350m extra a week

Seems to me the anger on here is caused by jealousy. A perception that others are getting something you're not, and it's not fair Stop worrying about what others have, and just enjoy your own life. You will never be happy being jealous of others (look at Scooty, he's a prime example)

[Whorty]

As usual, you make no sense. Face the mirror back towards yourself.

Thanks for the neg rep though - it's nice to see who's getting to who here. Hard to face the truth?

Anyway - hurry up now little boy, pack up your bags and get out of here.

Scooty gave me one last week too He's easily triggered and throws his toys out the pram

[DealorNoDeal]

Scooty gave me on last week too He's easily triggered and throws his toys out the pram

I wonder what his missus would make of his on-line Walter Mitty/Billy Liar persona?

If he's anything like this in real life, I feel for her.

[BlueSharp]

The mortgage holiday is not a bailout; those using it will still owe the money. They will still have to pay the mortgage and all interest. Why is this so hard for you guys to understand?

As for the NHS, it will be rosie at the end of the year when it starts to get £350m extra a week

Seems to me the anger on here is caused by jealousy. A perception that others are getting something you're not, and it's not fair Stop worrying about what others have, and just enjoy your own life. You will never be happy being jealous of others (look at Scooty, he's a prime example)

What do you think will happen to mortgage defaults if the mortgage holiday did occur/ £80 billion was not given to the new sub prime borrowers?

We are in a new norm if you're in a job that has been furloughed only kept alive by a bailout I would be very concerned.

[Paddy]

Interest rates are being artificially held below inflation, so mortgage holders are being subsidised through the time value of money. They make money just by being in debt.

Quantitative easing. Every pound printed is a direct transfer from a hard-working contractor to an idle landlord or other debtor.

£50,000 government backed loans to BTL, stamp duty holiday, 95% government mortgage guarantees, mortgage holidays: all a gift to debtors.

60% taxes for working compared to less than zero taxes (after housing benefit) for BTL.

Basically the whole thrust of government spending is aimed at increasing the value of Sunak’s ten houses. (OK, also giving undeclared handouts to his wife and vast quantities of money to his father in law, but that’s another story).

Money that could have fixed the health service, fed the hungry, is instead being aimed at making the rich richer in a vast mortgage bailout.

Only BOE base rates are below the inflation rate, BOE rates are for banks only it is not the rate charged to consumer borrowers and mortgage borrowers.

[Whorty]

What do you think will happen to mortgage defaults if the mortgage holiday did occur/ £80 billion was not given to the new sub prime borrowers?

We are in a new norm if you're in a job that has been furloughed only kept alive by a bailout I would be very concerned.

One of the aims of the furlough is to save jobs and save the (mostly) smaller businesses that are taking advantage of the scheme.. This is by keeping those jobs 'live so once we get to the other side of this those businesses are still around and will have a chance to start again.

Now, not all businesses will survive and not all jobs will be saved, but this is a chance to save as many as possible. Just think about all those pubs and restaurants that would have been closed for good had this scheme not been available.

I get that those who are not getting anything from the scheme are jealous. I get you feel you are losing out and you don't think it's fair. But, you have a job, you have income, so be thankful that you and your family are being looked after. And then have some empathy for those less fortunate than you who need help.

If this sounds a bit preachy to any of you ... that's your issue not mine

[ChimpMaster]

I like your other posts so I'm surprised by this, so I'll try to explain.

Interest rates are being artificially held below inflation, so mortgage holders are being subsidised through the time value of money. They make money just by being in debt.

Interest rates are at historical lows globally. This is not just a decision made by the BoE to "help" the UK property market. The global economy is f&&ked, so that is why rates are low. When rates are low, businesses/investors/entrepreneurs will seek yield where they can. Property (commercial/resi) is a hard asset that generates yield above the 0% that banks are giving for cash in accounts. Asset income/values will always outpace the return on savings you get in a bank account. This is not a new phenomenon. And BTW, mortgage rates have been increasing this year, not falling, even though the BoE rate is at all time lows.

Quantitative easing. Every pound printed is a direct transfer from a hard-working contractor to an idle landlord or other debtor.

You already know that this sentence makes no sense.

£50,000 government backed loans to BTL, stamp duty holiday, 95% government mortgage guarantees, mortgage holidays: all a gift to debtors.

The £50k BBL cannot be used to buy property. This counts as fraud and will be penalised.
Stamp Duty holiday helps mainly first time buyers and those moving house. Investors still have to pay the 3% surcharge and anyway do not buy based on the minor advantage of a stamp duty cut.
Taking mortgage holidays mean that property owners end up paying more to the banks in interest. The debt is not 'forgiven'. They also get black-balled for future mortgages by a number of lenders.

60% taxes for working compared to less than zero taxes (after housing benefit) for BTL.

When's the last time you paid 60% tax on anything? It's not becoming of a contractor to whinge about taxes.
And 'less than zero taxes'? No idea where you get that from. Try looking up Section 24 taxation and see how many property investors had to pay > 100% tax (yes, sounds unbelievable but it is true).

Basically the whole thrust of government spending is aimed at increasing the value of Sunak’s ten houses. (OK, also giving undeclared handouts to his wife and vast quantities of money to his father in law, but that’s another story).

I'm sure he has more money than he needs to care about 10 houses.

Money that could have fixed the health service, fed the hungry, is instead being aimed at making the rich richer in a vast mortgage bailout.

Like the £12bn spent on Track & Trace? Like the £100bn spent on HS2? Like the £53bn spent on pay/pensions for public sector workers over and above the private sector average? Like the £20bn lost on fraud?
This isn't a mortgage bailout. It's a global economic bailout. I'm not saying I agree with all of it, and I certainly didn't agree with it in 2008/9, but it's there to prevent a collapse that would be be far, far worse for everyone: if you're praying for a house price fall so that you can buy a house, you won't be able to get a mortgage if the economy collapses, and the cash in your bank could disappear overnight.

[scooterscot]

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.

I completely agree with you. Apart from the part 'I'm claiming to be wiser' - no such claim has ever been made.

All I'm doing is calling how I see it. We're not in a capitalist society anymore. When businesses & individuals go bust they fail. That's not being allowed to happen which only pushes recovery further into the future.

Are bail ins really possible? The day negative interest rates become true, yes, you're savings / cash is directly being used to prop up those who overextended themselves. I'd be £$$%$@ livid.

Long and short of it, state aid is being used to prop up failed business & households. Yes it sucks jobs are lost, but assuming they'll return, 3-months, 6-months, 12-months - where does it end?