Santander robbing us blind!!!

TrickyDicky101

ripper1001 wrote: »

And who do you think would abuse it?

Those who have no idea how they will repay what they borrow

kingstreet

ripper1001 wrote: »

And who do you think would abuse it?

It was abused by developers to sell more expensive properties. It was abused by advisers to make mortgages look more affordable. It was abused by consumers to "reduce my monthly payments."

TrickyDicky

ripper1001 wrote: »

I just can't afford to pay off any capital so what am i supposed to do? I'm stuck!!

Sell the house and rent.
At least with renting, you wont suddenly have a mortgage to pay back in 25 years.

Henry_P_Chester

TrickyDicky wrote: »

Sell the house and rent.
At least with renting, you wont suddenly have a mortgage to pay back in 25 years.

Also when renting from a landlord rather than the bank you don't pay any maintenance of the property.

Conrad

I always see threads with this sort of theme, and it's always the same answer I'm afraid; YOU AGREED TO THE TERMS IN THE ORIGINAL CONTRACT, PERIOD.
Those temrs wont say things like 'if we get taken over due to a credit crunch, your variable rate will aceed to that of the new lender'.
What you might percieve as common sense, is neither here nor there, and in any event the original deals with A&L were priced based upon the money market rates they were able to obtain at the time - a new buyer cannot simply willy nilly ignore those finely tuned profit / loss calcualtions.

Let half the lounge out.

Gorgeous_George

Henry_P_Chester wrote: »

Also when renting from a landlord rather than the bank you don't pay any maintenance of the property.

But you lose security of tenure and usually, rents rise year on year.

It's all about personal choice. If you cannot afford to pay the mortgage, do you have a mobile phone, TV, broadband?

GG

neverdespairgirl

kingstreet wrote: »

A useful tool for some borrowers, abused by some people to artificially reduce mortgage payments in an inappropriate manner.

A lot of barristers have interest-only mortgages, because we're self-employed.

So when you get a big cheque in, you pay off a lump sum. Then, when you have months where you get £100 every fortnight, you just pay the interest section. Helps with cashflow, so it's quite common.

firesidemaid

OP have you considered asking the bank to move you over to the Santander rate?

Also, check your terms and conditions, but you can start overpaying by as little as £1 per month. collect up your loose change, sell a little on ebay, reduce your food budget or use coupons etc.

this is how we all started. check out the mortgage-free wanabee threads

GMS

neverdespairgirl wrote: »

A lot of barristers have interest-only mortgages, because we're self-employed.

So when you get a big cheque in, you pay off a lump sum. Then, when you have months where you get £100 every fortnight, you just pay the interest section. Helps with cashflow, so it's quite common.

A good example of why interest only works. There are many others but as has been said it has been abused.

Interest only has a place in the market if properly advised and underwritten.

Unfortunately it will be pigeon holed and restricted beause it is easier than treating it in the way it should be.

kingstreet

neverdespairgirl wrote: »

A lot of barristers have interest-only mortgages, because we're self-employed.

So when you get a big cheque in, you pay off a lump sum. Then, when you have months where you get £100 every fortnight, you just pay the interest section. Helps with cashflow, so it's quite common.

You'd be under the heading of useful tool then.

I can think of loads of cases where both interest-only and self-certification are perfectly legitimate tools to assist proper financial planning, but as I mentioned, they were abused and bent to achieve the wrong kind of result.