Help & advice needed for our RIDICULOUS mortgage!

poet123

MegaMiniMouse wrote: »

Not at all - when the OP's mortgage began, nobody was considering the possiblity of falling house prices.

Times have changed, and the OP is an unfortunate victim

The banks however are doing just fine, thanks to the taxpayer bailouts

MMM

No, in any economic climate it is necessary to ensure you have a means of repayment of capital in place if you have an interest only mortgage. In fact, until relatively recently, you had to prove you had such a vehicle in place before a mortgage was given.

You cannot rely on the property value increasing, and even if it does, you then have to sell to repay the debt, which you may or may not want to do.

Anyone taking out such a mortgage lacks common sense if they do so without an eye to the future, or for a prolonged period without thinking about a means to repay the capital.

Bad financial decisions cannot always be laid at the feet of others, even the banks,;) there has to be responsible borrowing and personal accountability, even though that is not particularly fashionable.

MegaMiniMouse

poet123 wrote: »

until relatively recently, you had to prove you had such a vehicle in place before a mortgage was given

That requirement was relaxed precisely because the banks calculated that the mortgaged property would always have sufficient 'value' to pay off the loan

How wrong they were...

MMM

poet123

MegaMiniMouse wrote: »

That requirement was relaxed precisely because the banks calculated that the mortgaged property would always have sufficient 'value' to pay off the loan

How wrong they were...

MMM

The banks were not the ones with the most to lose though were they?

Borrowers who overstretched themselves are also accountable, surely commmon sense should dictate you know how repayment will be effected at the end of the term? It hardly requires a great deal of intellect to pause and consider that most basic point.

Passing the buck to the lender won't wash.

MegaMiniMouse

poet123 wrote: »

The banks were not the ones with the most to lose though were they?

Borrowers who overstretched themselves are also accountable, surely commmon sense should dictate you know how repayment will be effected at the end of the term? It hardly requires a great deal of intellect to pause and consider that most basic point.

Passing the buck to the lender won't wash.

The banks lost nothing - they were bailed out by the taxpayers. Any taxpayer who was also a mortgage payer paid twice

MMM

opinions4u

MegaMiniMouse wrote: »

The banks lost nothing - they were bailed out by the taxpayers.

As a shareholder (part owner) of a bank, I look at the value of that shareholding and see a 98% loss.

My choice to hold the shares, my risk, but to say the banks "lost nothing" is utter tosh. The owners of Northern Rock and Brandford & Bingley lost everything they'd invested. The owners of HBOS, Lloyds TSB and RBS lost massive amounts.

Any taxpayer who was also a mortgage payer paid twice

Strange isn't it. Most mortgage payers seem to be paying less since the banks tanked. Yet you think their costs have doubled.

There are two key elements to consider in the Government taking ownership in the banks.

1) The Special Liquidity Scheme is a loan. It's likely to be repaid (with interest) by all beneficiaries at some point next year.

2) The shareholdings in the banks are part ownership. They are an asset for the people. When sold, it is highly likely that a profit will be made.

While not in any way defending the banks and their actions pre-Credit Crunch, your post is utter nonsense and you are simply perpetuating sensationalist reporting rather than considering the facts.

The irony of it all is that at the time in history when the banks have been most heavily regulated by government, they hit the rocks hardest.

getmore4less

The irony of it all is that at the time in history when the banks have been most heavily regulated by government, they hit the rocks hardest.

I thought it was lack of regulation that allowed the situation.

Northern rock was lending long borrowing short and just ran out of money.

Averyone was wrapping up loans to make their rating look better and passing round the debts.

the credit raters ignored the risks and still rated the stuff highly.

and the US waseven worse

1jim1

Thank you poet123 for the 'lacking common sense' and 'intellect' jibes. as you will see by my earlier post i am very aware of our stupidity in this department in the past. I have not passed the buck to the lender or blamed anybody but ourselves. Alls i have been looking for is help and advice to help us maybe get out of our situation. We will be better moving into a house that we can live in for years to come and move our mortgage to a repayment mortgage, the place we are in is just too small for a family of four...the second bedroom would not fit 2 kids in, and if we have a girl we are snookered anyway. So we do NEED to move.
We are seeing a financial advisor tonight so hopefully he will give us a positive step to take.
Thank you to all of those people on here who gave us any POSITIVE advice or any it was much appreciated.
Much love. peace x