BBC 1 'Repossesed - Upsetting To Say The Least!

space_rider

I watched it and I was quite disturbed by it.

8 years ago I had a baby who was very ill. When my maternity pay was due to run out I knew that I couldn`t go back to work and that I would struggle to pay all my bills. First thing I did was to ring my mortgage company and reduced my payments. 2nd thing I did was to seek a free debt counselling service and they wrote to all my creditors and got my payments reduced to what I could pay. I then contacted the DSS and claimed income support. After 39 weeks they started to pay the interest on my mortgage and bit by bit I cleared the arrears. After being on income support for 3 years I went back to work. Because I had to live within my means I was able to clear my debt and even overpaid on my mortgage.

What I don`t understand is how they all got into the situation where it led to their houses being repossessed. I thought everyone knew that the first thing you pay for is the roof over your head and your council tax. My previous lender was very good. I am now with Abbey and they were the lenders of the couple in Essex. My job is a bit shakey at the moment but because I don`t have any debt apart from my mortgage I shouldn`t end up in the circumstances where my home is at risk.

lisyloo

What I don`t understand is how they all got into the situation where it led to their houses being repossessed.

Well two of he breadwinners had their income severly reduced.
Both the second hand car dealer and the mortgage broker had their businesses severely affected.
The other couple seemed to take on too much debt and then couldn't service it.
They could have waited for some of the home improvements.

In all cases it was poor financial planning (well none at all to be honest).

You were very organised and obviously had enough put by to get past the initial 39 weeks.
These people had not prepared any such contingency.

space_rider

feisty1 wrote: »

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

Surely the so called "lie to buy" advisors actually get approached by those that wouldn`t get a mortgage by conventional methods.

space_rider

Thanks lisyloo, it would be interesting if we got the full story as I assumed that if you approach your lender in the early days then they would work with you.

harryhound

Unfortunately, unlike 8 years ago, the banks too (especially those sub prime ones that don't qualify for Gordon's bail out with our money) are also teetering on the edge of financial melt down. So they too face the decision to go bankrupt sooner rather than later.

Hopefully the bank of rapid South American expansion, that has funded Abbey, won't need its money back too soon and can take the long view.

space_rider

harryhound wrote: »

Unfortunately, unlike 8 years ago, the banks too (especially those sub prime ones that don't qualify for Gordon's bail out with our money) are also teetering on the edge of financial melt down. So they too face the decision to go bankrupt sooner rather than later.

Hopefully the bank of rapid South American expansion, that has funded Abbey, won't need its money back too soon and can take the long view.

Darn it. Well thanks to this site I really cut down on my spending a year ago and will bear that in mind.

Claremac

I'm pretty sure that he said that he was paying 11% on a £180,000 mortgage. He was paying 11% as he had a poor credit history.

Claremac

Oooops hadn't realised that there was a second page and was answering #20 at the bottom of the first page.

feisty1

space_rider wrote: »

Surely the so called "lie to buy" advisors actually get approached by those that wouldn`t get a mortgage by conventional methods.

I haven't had any one client say to me I would like a "lie to buy" mortgage....I have many requests for mortgages that it is not possible to provide for various reasons including (making an assmption) "lie to buy". Just because I have a request doesn't mean i have to provide. Like many advisors I value my licence & I am not going to put myself/career at risk to enable someone to obtain a mortgage who doesn't fit the criteria. As, I have explained, good and bad can be found in any industry profession.......

The_Pawnbroker

Banks.... can't live with them... well you know the rest.