Mortgage rescue plan to be unveiled "Update"

[enaid]

The Government is to unveil a mortgage rescue scheme to help people facing repossession stay in their homes.

Under the scheme, vulnerable families who are no longer able to keep up with their mortgage repayments will be offered the chance to sell their home and rent it back, or to enter into a shared equity or shared ownership scheme on the property.
The move is one of a series of measures being announced to help hard-pressed homeowners and those struggling to get on to the property ladder in the current economic climate.
The Government is also introducing a shared equity scheme for first-time buyers and it is boosting the money available for affordable housing schemes.
Full details of the package will be announced by Prime Minister Gordon Brown and Communities Secretary Hazel Blears later.
The initiative is part of a wider series of announcements which will be made in due course to help alleviate the pressure on consumers and the industry.
Recent figures show that the number of homes being repossessed hit their highest level for 12 years during the first half of the year, with 18,900 properties taken back by lenders, 48% more than during the same period of 2007.
The mortgage rescue scheme aims to help vulnerable families avoid repossession, specifically targeting those who would be eligible for homelessness assistance.
Under the plans, people facing repossession will be able to sell their home to a registered social landlord (RSL), who will clear the mortgage and then rent it back to them at a level they can afford.
Alternatively, an RSL will buy a share of the property, enabling the homeowner to repay some of their mortgage and a shared ownership lease will be issued on the property. In other cases, the RSL will provide an equity loan to help reduce the homeowner's mortgage repayments.

[enaid]

Re: Mortgage rescue plan to be unveiled

Well they finally got their ideas to help people sorted out.
They are both absolutely novel ideas, sell and rent back that's a new one and shared ownership never heard of that one either LOL
Anyway musn't mock, they have the theory sorted and it's not took them that long has it?
Lets see how long before the practical kicks in. Enaid x

[Amethyst]

Re: Mortgage rescue plan to be unveiled

What was the scheme where the goverment pays the interest on 30% of the loan for first time buyers? or did I imagine that.

[Sapphire]

Re: Mortgage rescue plan to be unveiled

Oi Gordon if your reading this, try stopping the immigration, that will help people who need homes as well hun.

There's rumours that they are going to up the level of stamp duty as well, that should help.

[Amy]

Re: Mortgage rescue plan to be unveiled

As Richard Littlejohn said just the other day "1984 was a book, not an instruction manual."

[Amethyst]

Re: Mortgage rescue plan to be unveiled

What was the scheme where the goverment pays the interest on 30% of the loan for first time buyers? or did I imagine that.

Ahh no I didnt imagine it

interest-free loans towards part of the value of a property for first-time buying households earning less than £60,000.

"Free" five year loans of up to 30% of a property's value for first time buyers of new homes in England

This sounds a bit more helpful for current owners..

• Shortening from 39 weeks to 13 weeks the period before Income Support for Mortgage Interest is paid

Wonder if that means the rules on disregard will change too.

[enaid]

Re: Mortgage rescue plan to be unveiled

Homes worth £175,000 or less are to be exempted from stamp duty for 12 months as part of a package to revive the housing market, the Chancellor Alistair Darling announced.
The change, which comes into effect on Wednesday, raises the threshold on which 1% stamp duty is paid from its current level of £125,000.
The move will save eligible home-buyers up to £1,750 when they purchase a property, and relates only to buildings entirely for residential use.
In a statement, the Treasury said: "The Chancellor of the Exchequer has announced that stamp duty land tax will not apply to purchases of residential property of £175,000 or less.
"This will provide an exemption from stamp duty land tax for land transactions consisting entirely of residential property where the chargeable consideration is not more than £175,000. This relief will apply to transactions with an effective date on or after 3rd September and before 3rd September 2009."
The Treasury estimates that the one-year stamp duty freeze will cost the Government £600 million - suggesting that it expects about half a million home-buyers to benefit from the change.
Around half of the 90,000 home purchases completed each month are on properties worth £175,000 or less, but deals below £125,000 are already exempt from stamp duty.
The average price of a home in the UK was just under £165,000 in August, according to the Nationwide Monthly House Price Index.
The plan for a stamp duty freeze first emerged last month but was met by official silence - leading to claims that the housing market had been paralysed by dithering between the Treasury and Downing Street.
The announcement came as Communities Secretary Hazel Blears unveiled a further package of measures to revive the housing market, including help for first-time home-buyers and people at risk of repossession.

[jules2008]

Re: Mortgage rescue plan to be unveiled "Update"

also i think that they are planning letting first time buyers have double the amount of savings in an ISA (tax free savings).
nice of them huh

[Amethyst]

Re: Mortgage rescue plan to be unveiled "Update"

okay simple and probably wrong thought....if they help more first time buyers buy houses now, while prices are falling and rates are rising, surely that means in 5 years (cause it will take a while to go back up again) we'll have a batch more repos etc where the 30% interest free loan comes to an end, the low income families under 16k who shouldnt have a mortgage anyway cause they cant afford it (av house price now £165k....on 16k annual income I dont think so) will be in more poop than when they started and the industry will have had a temp bail out because more FTB will have mortgages then just slump again.