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Post by staffordshrew on Nov 6, 2022 17:53:08 GMT 1
This sort of mortgage problem has occured before, all that has to be done is that your mortgage term is extended so your payments don't rise beyond your means. It's bad, but, if people talk to their lenders, it's not something the government can or should be messing with. If finances get a bit better in years to come people can pay off more than is due and cut down the mortgage term.
Get into this and there would be calls for assistance for renters too.
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Post by frankwellshrews on Nov 7, 2022 0:29:05 GMT 1
Definite "no" from me. I imagine the optics would be pretty poor in a lot of the country too.
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Post by ssshrew on Nov 7, 2022 8:57:28 GMT 1
It’s easy to suggest/promise anything when you know you won’t have to deliver it as Clegg found with student grants.
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Post by davycrockett on Nov 7, 2022 10:12:36 GMT 1
Think he’s talking morally rather than practically which is easy to do when you not balancing the books.
The previous high interest rates we’ve suffered haven’t been as a direct result of a single government mismanagement (disastrous mini budget) I thinks the point not that I’m agreeing with his solution.
‘The Conservatives have crashed the economy and that’s added hundreds of pounds to millions of people’s monthly mortgage payments,” he said. “Something has to be done, particularly for those who are really struggling or in danger of falling into arrears or even facing repossession.’
Folks will have to suck it in but hopefully not forget.
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Post by staffordshrew on Nov 7, 2022 11:18:00 GMT 1
It seemed so strange that he should talk sense about the Conservatives having crashed the economy and then come up with such a hare brained scheme - all that's needed is a word with lenders to ensure they will extend mortgages, without penalty, and not chuck people out on the street because of this situation.
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Post by frankwellshrews on Nov 7, 2022 12:50:22 GMT 1
Think he’s talking morally rather than practically which is easy to do when you not balancing the books. The previous high interest rates we’ve suffered haven’t been as a direct result of a single government mismanagement (disastrous mini budget) I thinks the point not that I’m agreeing with his solution. ‘ The Conservatives have crashed the economy and that’s added hundreds of pounds to millions of people’s monthly mortgage payments,” he said. “Something has to be done, particularly for those who are really struggling or in danger of falling into arrears or even facing repossession.’
Folks will have to suck it in but hopefully not forget. Trouble is, doing so defeats the object of increasing rates. The whole point is precisely so that individuals have less spending power and demand in the economy is reduced which in turn, or so goes the theory, reduces inflation. Arguably you need that to be higher spending power individuals who are probably on higher mortgages (your average Joe on minimum wage probably isn't blasting the heating full whack and splurging on free range chicken right now). If we just subsidise the increase, we're back to square one and get no benefit from the rate increase. In reality, if banks have failed to appropriately risk assess affordability (rates haven't gone up more than the affordability criteria were supposed to assess yet) or individuals, like a lot of people did in the era of ultra low interest rates, took on car loans or homeowner loans to finance expensive upgrades that are now unaffordable, I struggle to see how it's government's job to resolve that at the cost of everyone else. The banks need to sort this out with their customers. Whilst it might be "moral" for the minority, how moral is it to saddle more prudent borrowers or those nowhere near the property ladder with yet more national debt, continued inflation and devaluation of savings to protect a minority of people in higher income areas from the consequences of their decisions? |
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Post by davycrockett on Nov 7, 2022 14:59:12 GMT 1
Think he’s talking morally rather than practically which is easy to do when you not balancing the books. The previous high interest rates we’ve suffered haven’t been as a direct result of a single government mismanagement (disastrous mini budget) I thinks the point not that I’m agreeing with his solution. ‘ The Conservatives have crashed the economy and that’s added hundreds of pounds to millions of people’s monthly mortgage payments,” he said. “Something has to be done, particularly for those who are really struggling or in danger of falling into arrears or even facing repossession.’
Folks will have to suck it in but hopefully not forget. Trouble is, doing so defeats the object of increasing rates. The whole point is precisely so that individuals have less spending power and demand in the economy is reduced which in turn, or so goes the theory, reduces inflation. Arguably you need that to be higher spending power individuals who are probably on higher mortgages (your average Joe on minimum wage probably isn't blasting the heating full whack and splurging on free range chicken right now). If we just subsidise the increase, we're back to square one and get no benefit from the rate increase. In reality, if banks have failed to appropriately risk assess affordability (rates haven't gone up more than the affordability criteria were supposed to assess yet) or individuals, like a lot of people did in the era of ultra low interest rates, took on car loans or homeowner loans to finance expensive upgrades that are now unaffordable, I struggle to see how it's government's job to resolve that at the cost of everyone else. The banks need to sort this out with their customers. Whilst it might be "moral" for the minority, how moral is it to saddle more prudent borrowers or those nowhere near the property ladder with yet more national debt, continued inflation and devaluation of savings to protect a minority of people in higher income areas from the consequences of their decisions? I said I didn’t agree and ‘folks will have to suck it up’…..For years now lenders have asked borrowers how they’d manage if interest rates went up as part if the borrowing process. Now that times come. |
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Post by Deleted on Nov 7, 2022 15:13:25 GMT 1
When I took my first mortgage out, back in 1985, I was asked if I could afford the monthly payments should interest rates double in the future, which of course they did.
There was certainly no help from the government then, when interest rates doubled.
I asked my daughter and son in law the same question above when they came to buy their first home. They cut their cloth appropriately.
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Post by Valerioch on Nov 7, 2022 21:19:28 GMT 1
Yet another in a long line of terrible policy ideas from the awful Davey
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Post by zenfootball2 on Nov 8, 2022 22:42:20 GMT 1
When I took my first mortgage out, back in 1985, I was asked if I could afford the monthly payments should interest rates double in the future, which of course they did. There was certainly no help from the government then, when interest rates doubled. I asked my daughter and son in law the same question above when they came to buy their first home. They cut their cloth appropriately. i did the same with my daughter she factored in intrest rates of 15% when rates were rock bottom before getting a mortgae on a flat. |
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Post by zenfootball2 on Nov 8, 2022 22:42:39 GMT 1
When I took my first mortgage out, back in 1985, I was asked if I could afford the monthly payments should interest rates double in the future, which of course they did. There was certainly no help from the government then, when interest rates doubled. I asked my daughter and son in law the same question above when they came to buy their first home. They cut their cloth appropriately.  |
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Post by zenfootball2 on Nov 8, 2022 22:44:33 GMT 1
When I took my first mortgage out, back in 1985, I was asked if I could afford the monthly payments should interest rates double in the future, which of course they did. There was certainly no help from the government then, when interest rates doubled. I asked my daughter and son in law the same question above when they came to buy their first home. They cut their cloth appropriately. i had to jump through a number of hurdles before i got my first mortgage. we then went to the opposite extreme with banks throwing money at people. |
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