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Ain’t no stopping us now…

Another day, another Government initiative. It took a while for them to creak into action, but now it seems there is no stopping them and you can’t fault Brown & Co. for trying.

This time, with repossessions predicted to peak at worryingly high levels, the government have told lenders that they will underwrite people’s mortgage payments for up to two years if income is hit through redundancy or the general effects of the recession.

This will work for loans up to £400,000 and could help several thousand people. Basically, if you do fall into trouble you will need to negotiate with the lender to confirm how much you can pay, and the remainder is deferred – not waived – deferred for up to two years until you can pay again at the desired level.

It is not a perfect scheme, but it is a good one in principle.

Without seeing the full details it is hard to comment further, but there needs to be a careful mechanism to understand those that are genuinely hit and those that probably should never have borrowed what they did in the first place.

This will not halt repossessions completely, which many argue could be a bad thing as it firstly stores up trouble for later on, and secondly arguably stops the housing market from finding its own bottom level.

Personally, I think some kind of brake needed to be put on this, as the housing market could have overshot its natural floor, due to bad news and consumer sentiment.

As I have stated before, I believe the next six months represent the trough of house prices and with more rate cuts on their way, deals are there to be done now.


RBSIP sets up free broker callback service

Royal Bank of Scotland Intermediary Partners has set up a free online callback service that allows brokers to book time slots to speak to the lender and resolve enquiries about their cases.


I was feeling melancholy all weekend, perhaps because I found out that one of my favourite songs is about to be ruined by whoever wins the X factor, and therefore had it going through my head over and over again.

RBS and Rock offer six-month grace period

RBS and Northern Rock have committed to a six-month grace period for borrowers facing repossession, but the latter says its foreclosures usually take 15 months anyway.

Reforming India: just the beginning

By Kunal Desai, Neptune India Fund

As global investors continue to scour emerging markets through the lens of reform potential, India shines bright. Indeed, we think it can sparkle even brighter. We anticipate India’s self-imposed 10-year ‘policy holiday’ to turn into one of the most pro-growth and pro-investment policy calendars seen in Asia in years. The Indian electorate has engineered a historic verdict. We now have the strongest Indian government since 1984, with the pro-market Bharatiya Janata Party (BJP) achieving an absolute majority for the first time in the party’s history.


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