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Mortgage & Rents

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Mortgage & Rents

A Plymouth dad has got 74000 signatures in 48 hours for a government petition.

 

' Pass a law forcing mortgage lenders to make payments of rent count as proof an individual can meet mortgage payments '

Sounds like a good idea to me providing the rent has been paid on time over a number of years, how many people in rented property could have purchased their property with money spent on the rent but were unable to get a mortgage.

Unlikely the building societies will bein favour of it but if it becomes law they may have little option.

What do you think ?

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Community Veteran
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Re: Mortgage & Rents

Seems reasonable enough to me, the banks can sit happy though with their minimum purchase deposits preventing renters from ever daring to dream of owning a home...

Minivanman
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Re: Mortgage & Rents

Well on the face of it such payments can prove what they like, but if the lender does not want to lend......

Also to consider that one is often paying to either an individual or their agent, and the other to and much larger and differently controlled organisation which rather distorts any obligation.

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Community Veteran
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Re: Mortgage & Rents

So would this take in to consideration payments made by Housing Benefit? And would that then mean if you need Housing Benefit you can't pay your mortgage. Someone could easily be getting benefit for years then land a job and if these benefit payments were included it wouldn't strictly be true.

Minivanman
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Re: Mortgage & Rents

Good point Thumbs Up

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Community Veteran
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Re: Mortgage & Rents

Given that these days, HB is paid to the claimant and not the landlord or letting agency, it's up to the claimant to pay the rent ontime, so making the payments themselves should count as being reliable if they land a job and can afford to live on a working wage (yeah, made me laugh too, being able to afford to live, in this country!!!)... Smiley

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Re: Mortgage & Rents

Finally some common sense coming around in this country. I don't understand why this hasn't been done sooner.

Oh hang on, yes I do.. that would disturb the income of the rich..

I need a new signature... i'm bored of the old one!
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Re: Mortgage & Rents


7up wrote:

 

.. that would disturb the income of the rich..


 

 

Except for the fact, that, if more people are granted mortgages, because of their rent record being taken into account, then there would be more money for the "rich", house builders to build more houses, to sell to more people with good rent record, to increase the income of the "rich" house builders to build more houses, to sell to more people.............. et al....

 

Which would make the rich...... richer...  ( or perhaps,... more rich )... !

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Re: Mortgage & Rents

But you're thinking logically and for the good of the nation.. I'm talking about the landlords and elite who want to keep the rent rolling in paying their own mortgages etc.

I need a new signature... i'm bored of the old one!
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Re: Mortgage & Rents

Now up to 136,000 signatures.... Reform of the Lords 106,000

Both important but it's clear this issue has hit home with lots of people.

Sure there are various snags and problems for a lot of tenants as mentioned in earlier posts but Landlords are not making the profits they once made from rented properties due to recent changes so even those who have kept up with their rent can face eviction with no right of appeal.

The top priority for most people are their families and keeping a roof over their heads.

This change could give people and in particular the young to get a foot on the housing ladder

Minivanman
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Re: Mortgage & Rents

From what I have seen landlords (what an archaic term) are shifting from profit to investment. Property is being bought so that rent received secures running costs, agents fees, and covers any mortgage they may have on it. Better as always to put what eggs you have into property rather than shares or savings as the returns are far higher.

Interest rates, what are they these days? 

PS. No, I am not a 'landlord' neither would I ever be one.

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Jonpe
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Re: Mortgage & Rents

Have you forgotten the financial crisis of 2007-2008 that was brought about by banks lending to people who could not afford the repayments?  If the government forces the banks to relax the rules, the banks could, if it all goes horribly wrong, demand another bail-out (and with justification this time), and I for one do not wish to have to bail out these private companies again.

Not all landlords are rich; I know a number of people in fairly ordinary jobs who've saved, got a mortgage, and bought a second property to let out.  In fact 10-15 years ago when the buy-to-let frenzy was at its height I was often asked how many properties I owned.  For the record the answer is one (the one I live in).

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Re: Mortgage & Rents


Minivanman wrote:

From what I have seen landlords (what an archaic term) ?

What would you call them...... Without the word getting censored ?

@Jonpe

That's a fair and very relevant point, I guess most people on average pay take a considerable risk when taking out a mortgage, we certainly did when first starting, there is risk in many things we do but it may be the only way some people will ever get the chance of owning a property.

Sure the banks had to be rescued by the tax payer but they took some stupid risks on the investiment side of banking and that was the main reason they got into trouble, F Goodwin at RBS was a law unto himself with others failing to monitor what was going on, banks now have to have greater assets .

The greatest danger would be a increase in the interest rate causing people to fall behind with payments.


 Moderator's note by Mike (Mav): Quote fixed.

Luzern
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Re: Mortgage & Rents

,,, and the lower the interest rate (especially with interest only mortgages) the greater the effect and pain of a rate rise. Add into that interest only loans probably having to be converted to repayment at the end of the mortgage term, some folk are going into excrement inlet.

No one has to agree with my opinion, but in the time I have left a miracle would be nice.
Jonpe
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Re: Mortgage & Rents

It seems to be accepted wisdom now that the financial crisis that began in 2007 was brought about by subprime mortgage lending.  Part of the problem was that bankers had no idea what the various abbreviations used to describe some 'products' meant.

Yes, an interest rate rise of any size will have a worrying effect on those with large mortgages.  The young  might be able to extend their term although some hardline lenders may prefer repossessions.  There is bound to be some inflationary effect resulting from a weak Sterling, but it may have bottomed out already, and the currency should start to recover with the certainty brought about by the conclusion of the Brexit negotiations.  There are economists who believe Sterling was overvalued and would have seen a 'readjustment' regardless of the referendum result.

The Bank of England does not necessarily have to use an interest rate rise to counter inflation, there are other ways of doing it.  Ironically the virtually non-existent below inflation interest on savings (one of my accounts attract a generous Laugh 0.05%) means that it's not worth holding on to your money.  This in turn means we spend more which fuels inflation.