Stuck on a mortgage rate of 9.7%.... Ouch !

ad9898_3

I think we will be seeing at lot more of this type of thing over the next 18 months.

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=458668&in_page_id=8

puddy

i agree that they dont sound like responsible borrowers despite the blurb in the piece but the fact is that with the high rate of their mortgage, they are more likely to default and 'prove' the doubters right

hethmar

Yes, I thought that. The husband has only just cleared his debts (good on him) but the wife has a £20k credit card debt she is paying back at £200 a month. I wouldnt say they were an excellent bet really.

Cannon_Fodder

When I were't lad...we'd dream of being given t'mortgage of 9.7%. It'were nowt but a pipe dream, though.

Coz I was at school when I was a lad, and even though I had a paper round, the sub-primers wouldn't look at me.



Does anyone else think they should have been told "rent until you have got rid of those debts", rather than tied into a commitment such as a mortgage...?

Really2

hethmar wrote: »

Yes, I thought that. The husband has only just cleared his debts (good on him) but the wife has a £20k credit card debt she is paying back at £200 a month. I wouldnt say they were an excellent bet really.

How the hell do you rack up a £20K CC debt. Thats a 1/4 of their mortgage.

hethmar

Yes, I was just thinking, what the hell has she spent that on.

tr3mor

hethmar wrote: »

Yes, I was just thinking, what the hell has she spent that on.

Tat.

:rolleyes:

Really2

tr3mor wrote: »

Tat.

:rolleyes:

Cushions.:D

ad9898_3

What it does show is just how indebted a lot of people are, Brown may have gone on about 14% interest rates in the late '80's early '90's, yet we did come through that, if we were at 14% rates now their would be civil unrest without any doubt, repo's would be over 2 million.

Just proves how bad Browns economic policies have been, that we are heading for a worse state than we were in then with interest rates currently at a fifth of what they were.

neverdespairgirl

That article says some strange things:

Electrician Lee, 31, and Melissa, 25, are responsible borrowers, though they have had difficulties with credit in the past.

Lee ran up card debts and loans he could not afford, but he recently cleared all his outstanding debts, leaving the mortgage as his only commitment.

Melissa has £20,000 card debts and loans that she is paying off at £200 a month through a separate debt-management programme.



How can you have recently cleared debt you can't afford (one party) and be in a DMP (the other one) and be "responsible borrowers"?

Pobby

This is all a bit different to the last hpc. Wether or not the government is doing the right thing at least they are making all the right noises and trying to be seen to bring some form of relief to the indebted. Last time around Maggie and her gang of thugs stuffed up IRs as we were going into a recession. Granted that we had higher inflation but dear oh dear, a mortgage going from £400 a month to £700 was a bit scary to say nothing of my business overdraft being @ about 16%. Remember that was over 15 years ago.