Entries Tagged 'government' ↓

Northern Rock Rescue plan - How is Your Mortgage Affected?

The most likely scenario for the beleaguered Northern Rescue package is a rescue plan involving Virgin or another private firm with hefty government guarantees. This solution, if accepted, falls short of full nationalisation but it does rely heavily on government guarantees. It will also cost the taxpayer billions over the next decades.

Northern Rock Mortgage Holders will largely be unaffected by the takeover. Generally speaking if it is taken over by Virgin, existing mortgage deals will be honoured. If the bank had gone into administration it may have been more uncertain; in particular, existing customers may have lost special mortgage deals like fully flexible mortgage payments with no fees.

If Virgin does take over, it is likely to try and rebrand the company selling more current account mortgages. Focusing on simple basic mortgage deals; it would probably retreat from the subprime market, making it more difficult to get 100% mortgages and mortgages for those with bad credit. Continue reading →

Some councils are increasingly aware of the difficulty for key public sector workers to be able to afford to buy houses.

The cost of housing in the South and South East is a major deterrent for people to move from north to the South. This has meant that there has often been a shortage of public sector workers (such as teachers, nurses, policeman e.t.c.)

Some Councils such as Woking offer to pay upto 50% of the difference between a mortgage in Woking and a mortgage in cheaper parts of the country. After 2 years of paying 50% of the difference, the council then agree to pay 25% of the difference for the third year. Details here at Woking Borough Council

Other councils such as Essex are able to offer mortgage subsidies for teachers. There is no general National policy for these council run schemes. The best thing to do is to contact your local council to check whether you may be able to benefit from it.

Continue reading →