BBC 1 'Repossesed - Upsetting To Say The Least!

feisty1

md444: Quote: What kind of mortgage attracts 11%. They chose to lend to people who were high risk.

You answered yr own question, people who are higher risk will pay a higher rate, it's highly unlikely this was due to one missed mortgage payment
The same higher rates applies to car finance, credit cards, unsecured loans etc, so why not home finance. If you are paying 5% mainstream, would you be haapy a sb prime person was on the same deal? But if no lending was available to sub prime, people would be jumping up & down about discrimination.
I have always felt particularly in the case of sub prime, part of the mortgage package should be compulsory mortgage payment protection. Much has been said about advisers selling 5yr rolled up ASU. Although I don't support the way it was sold, the idea behind it, I agree with 100%. Many of the sub prime clients say they can't afford MPPI, in my view if you can't afford it, you can't afford to be without it. The same people insure the TV, mobile phone etc but choose not to protect their income? I recently dealt with a young couple facing repossession due to redundancy, looking at the outgoings £17.00 was going to Pet Plan for the dog! & no insurance for themselves?? This £17.00pm would have gone some way to giving them some protection..............The majority of people who have been/are facing repossession are those without appropriate protection in place. Maybe the government should consider looking at this and exploring what can be made compulsory to protect people, rather than allowing people to leave the home at risk, for the government to bail out at a later date at a cost to us all.

silvercar

You can quite easily live in a smaller house. Many of these problems, particularly in the UK and USA have been caused by idiots who feel that they MUST live in a bigger house, that their children absolutely must have seperate bedrooms and then a playroom and that they absolutely must have a living room, a dining room and an entertaining room.

Its a lifestyle chose. Some people do this rather than have 2 holidays a year or eat out twice a week. Fine if you can afford it.

Gordon Brown used to preach about prudence, didn't he?

Pot. Kettle. Black.

Article by a debt advisor in one of the weekend papers, said that people felt much better when they'd been repossessed and were living in rented accommodation. Just unfortunate that they didn't see that ahead and sold up when they could.

I have friends who can't afford to stay in their home, the situation has been getting worse over the last 18 months. They struggle on with a string of credit cards, their home is in disrepair and they are miserable. 4 months ago they went to discuss the situation with their bank (who is also their lender) and came away with a new mortgage deal and MEW another 30k. Most of that has gone on mortgage payments, expensive kids (1 disabled) and living expenses. The boiler is on its last legs, the kitchen is literally falling apart. I said they should sell a year ago, but they won't. Unless the bank allowed further MEW I can't see them lasting another 6 months in the house. Had they sold up 18 months ago, they could have bought a smaller newer house outright. The joke is that they still accuse the banks of not letting them access "their equity" in the house (about 40%) and blame the banks for forcing them to use credit cards, which are still being thrown at them.

Fliss_M

What got me what the car sales man who said they had nearly completed on the sale of that house and had a good offer on a smaller house to move to but the lender wouldnt move the mortgage or give another smaller one so it all fell through. (due to past history of payments, all I could think was dur) I couldnt believe it. It you know your in that situation, sell and RENT! Or tell the council your homeless, but dont drop the sale when you know you cant afford the mortgage!
I may be off the mark now, but it looked like his wife didnt work, there was never any mention of it. Why didnt she get a job, nights or while the kids were at school? Hell or high water, I would work in ANY job, Mcdonalds even, if it meant I could keep my house. (I say McDonalds as their pay is minimum as dh used to work there at 25 when he couldnt find work and while it was supposed to be full time he still struggled to get more then 32 hours a week out of them)

FraudBuster

Do Lie-to-Buy Mortgage Brokers sleep soundly at night?

dunstonh

Do Lie-to-Buy Mortgage Brokers sleep soundly at night?

Probably as well as lie to buy consumers.

mrcow

My one and only personal experience with a baliff was quite a few years ago now, but they were very professional and courteous.

It's a job that someone has to do. If lenders didn't actually bother to enforce the terms in their contracts then we'd none of us be paying our mortgages. (What would be the point?)

harryhound

zack1978 wrote: »

Saw the documentary earlier

One of the couple had got their house for £40,000, but ended up owing £150,000 . they just kept re-mortgaging, as they wanted to repair the house.

Why re-mortgage, just take your time, only do the jobs that you have money coming in for, put some money by from your wage and then do the repairs, don't get a loan or re-mortgage.

That is the joy of having a terraced house over a flat.
Anyone who spends 110 K on doing up a council house is probably off their trolley.

Harry.

PS The "Firefox" plug in has corrected the spelling of mortgage - The "mort" bit means "death".
http://en.wikipedia.org/wiki/Mortgage

lisyloo

All of these people failed in their financial planning in serious ways.

All of us need to cater for obvious things that can occur like death, sickness, redundancy and that's if you have a PERMANENT job.
If you ar self-employed then you cannot budget to live to your income during "boom" times.
You have to put something by for less good times.

These things are absolutely instinctively obvious to me.

I know there are "less sophisticated" people in the world and to an extent the banks and regulators do have to take some responsibility as well as the personal responsibility.

I only saw one out of three of the couples accept any personal responsibility.

If you live withing you means during "boom" times, then coirucmstances will eventually catch up with you.

harryhound

How many times do I have to post this truth.

http://forums.moneysavingexpert.com/showthread.html?t=444054&page=3

Together with "mortgage", we have "rack and ruin"

The second definition is equivalent to the economic rent of the land plus interest on capital improvements plus depreciation and maintenance -- the normal market rent of a property -- and is not inherently excessive or extortionate.

Historically, however, rack-rent has often been a term of protest used to denote an unjustly excessive rent (the word "rack" evoking the medieval torture device), usually one paid by a tenant farmer. The two conceptions of rack-rent both apply when excessive, extortionate rent is obtained by threat of eviction resulting in uncompensated dispossession of improvements the tenant himself has made. I.e., by charging rack-rent, the landowner unjustly uses his power over the land effectively to confiscate, and then to charge the tenant interest and depreciation on, the capital improvements the tenant himself has made to the land and is expected to maintain. This sense of the term is economically meaningful, and distinct from the market rent.

Incidentally we now have a Lands Tribunal to protect against such wicked land lords.

05-05-2007, 1:42 PM #41
Rent the bricks or rent the money ?
Quote:
Originally Posted by BTman
I live in the SE and my rent is just over half of what a 100% INTEREST ONLY mortgage would be, so I wouldn't even be buying the property, just renting from the bank...

And the money that I save goes into ISA's, stocks and high interest savings accounts which is keeping up with HPI..
Bring on those IR rises...

BTman
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It is interesting to see the realisation dawning that people with little capital have a choice of renting bricks & mortar OR renting some else's money. They end up either hating the landlord or the bank.

Politicians have a nasty habit of resorting to taxation by inflation; ie when they cannot pay the bills they have created, by exaggerated promises to buy votes, they simply print the money. In the UK at the moment we have money supply growing at 12% and inflation at 4.8%. (I bet Brown is pleased someone else will have to pick up his miss judgement).

It could go either way and we might end up with the worst of all worlds: - loss of confidence = loss of jobs = loss of national output = inflation (because of too little goods for everyday purchases) while house prices drop.

hound
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So far we are trying to dodge out from under by devaluing the currency. It might work by taxing all those wicked people with nest eggs, and is probably better than putting families, however stupid, in the gutters (Bad luck BT man or did you switch into something economically sterile like gold ?).
You might call it the Eva Peron solution.
http://en.wikipedia.org/wiki/Eva_Peron
If you want the doom and gloom version of how a country, free of wars, that had so much going for it, got in such a mess, there are a few pointers here
http://www.sjsu.edu/faculty/watkins/argent1.htm

feisty1

FraudBuster wrote: »

Do Lie-to-Buy Mortgage Brokers sleep soundly at night?

Why do people want to put the blame/responsibility back on the advisers?
I look at many posts on this site where people are posting requesting advice/help/information/tips to allow them to buy/raise finance/rent their home in a way that is less than "kosher". I see replies but they don't appear to come from advisers encouraging them to do such things........
We all know we have people in or society who are very clued up when it comes to the benefit systems. The same applies to the world of mortgages, we can only work with the systems/procedures provided. When people choose to try and beat that system they will go to any lengths to do it, we've even seen it in MP's.........You find good and bad in any industry, but at the end of the day, forget this nanny approach and allow people to take responsibility for their own actions & decisions