MSE News: Dump Sky and iPhones, struggling homeowners told

edited 30 November -1 at 1:00AM in Mortgages & Endowments
128 replies 15K views
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  • jimjames wrote: »
    Rate paid out on Savings: 3%
    Mortgage rates : 0.5%-3.99% (approx)

    Not exactly a healthy way to make masses of money.

    I know these figures are a huge generalisation but you get the idea that making money from mortgages isn't easy with current rates.

    yeah, but for every £1 the banks have in savings, don't they lend £4? I'm sure it works on some similar principle. So they have £10 in savings, which they pay 3%...then they lend out £40 and 'charge' 3%.....or is this wrapped around my head?
  • opinions4uopinions4u
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    yeah, but for every £1 the banks have in savings, don't they lend £4? I'm sure it works on some similar principle. So they have £10 in savings, which they pay 3%...then they lend out £40 and 'charge' 3%.....or is this wrapped around my head?
    The raise funds from savers and wholesale money markets and lend that on.

    If the amount lent is greater than the funds raised then they are insolvent.

    Many mortgage lenders have gone bust in recent years.

    What may have been a cash cow in the past isn't anywhere near as profitable today.

    The typical margin on a mortgage is 1%-2%. If you are repossessing properties worth less than the debt outstanding it is very easy to make a loss very quickly.
  • SystemSystem Forumite
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    opinions4u wrote: »
    Well you could probably save on food shopping for a week or two ... make sure you defrost the joints fully before cooking them.

    :rotfl::rotfl::rotfl::rotfl::rotfl:

    ROTFL That's a bit close to the bone!

    Seriously though, I'm interested that no-one's suggested losing the car to save money - that's the first thing I did when I got divorced with 2 kids and a part-time job. And no I didn't get much help from the Ex or the State. 5 years on I'm working full time, the kids are older, we have Freesat and a very small car that costs me virtually nothing in tax etc. It is possible to sort out your priorities so you've got a roof and food, but I'm in my fifties so I'm probably old-fashioned about what I need to spend money on

    Cheers

    Rosy
  • chattychappychattychappy Forumite
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    I don't run a car.
    I don't have Sky.
    I have a mobile phone contract of £30/month which includes business calls.
    I don't have kids or animals (I have clients).
    I don't have a mortgage.
    I keep expenditure on flights to around £1000 a month (including business travel).
  • opinions4u wrote: »

    If the amount lent is greater than the funds raised then they are insolvent.

    .

    I'm not sure about that - banks don't need £100k to lend someone a £100k mortgage - they need about £25/30k. They create the other 70k(ish).

    The only way they could mess that up is through greed.....oh wait lol
  • Do people not realise the priorities of life. Equal no 1 a roof over your head, feed and clothe your family and keep warm.
    try telling the benefit claimants that first! I have Sky and an iPhone and would never give either up. The banks all agreed I could have them as per CFS from money advise trust so if they all agreed then its fine.

    people forget that different reasons mean different outcomes. i used to earn a lot, now do not. I lived within my means, now cannot due to reduced salary so the things I stop pay are bank debts, not personal things that I need to keep me sane.

    if you dont agree tough. its my oppinion
  • Percy1983Percy1983 Forumite
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    auto-man wrote: »
    try telling the benefit claimants that first! I have Sky and an iPhone and would never give either up. The banks all agreed I could have them as per CFS from money advise trust so if they all agreed then its fine.

    people forget that different reasons mean different outcomes. i used to earn a lot, now do not. I lived within my means, now cannot due to reduced salary so the things I stop pay are bank debts, not personal things that I need to keep me sane.

    if you dont agree tough. its my oppinion

    Interesting point of view, but I would have to disagree.

    It really is a simple thing to live within yours means, if your means change your life changes.

    When you where earning enough for sky and an iphone fair enough, your money waste it however you like, but when you can no longer afford them but still have them who do you expect to pay for them?
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • WestonDaveWestonDave Forumite
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    auto-man wrote: »
    try telling the benefit claimants that first! I have Sky and an iPhone and would never give either up. The banks all agreed I could have them as per CFS from money advise trust so if they all agreed then its fine.

    people forget that different reasons mean different outcomes. i used to earn a lot, now do not. I lived within my means, now cannot due to reduced salary so the things I stop pay are bank debts, not personal things that I need to keep me sane.

    if you dont agree tough. its my oppinion

    If by bank debts you mean mortgage, that is likely to be a very short term attitude that will eventually lead to you losing your home. If by bank debts you mean loans then surely you were not living within your means otherwise you would not have been borrowing to fund things that were beyond your income?

    Whilst the CFS is a useful guidance in terms of general debts, I suspect saying to your mortgage lender that you aren't paying your mortgage because the CFS says you can have sky, won't result in them deciding not to repossess!
    Adventure before Dementia!
  • wouldbeqaulitymoneysaverwouldbeqaulitymoneysaver Forumite
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    So punish the poor? the citizens by invading their privacy and right of self determination by intrusive phone calls.
    I live on Benefits. what I decide to spend my money on is my business and my business alone.
    I use a Batch System because I can't afford to buy Clothes, Books academic shock horror expensive (waits for onslaught!) Travel etc. I keep my quality of goods high but aim to keep overall spending low.
    I have no mortgage.
    I object to exploiting Landlords getting tenants to pay the mortgage for them instead of tenants embarking on process of home ownership in suitable starter homes.
    Shoppers are exploited at the Retailers by 25% price rises in overall food inflation.
    The Retailers don't give a flying !!!! about the wellbeing of consumers/targets of constant intrusive marketing messages utilising psychologically invasive techniques.
    Plus Daily Heil #ukuncut#falseeconomy #feralelite#bullingdonclubeconomics are forcing Free Market doctrines on us and transfering public sector to private.
    Bankers Bailouts and bonuses nuff said.
    The poor are summarily punished and disciplined by neo-liberal economic doctrine by right wing Tories, how wonderful to see the common man assault the poor because his or her consent has been thoroughly manufactured especially at Election time.
    We have a one party state effective as Labour is not old labour of working man but Blair, Milliband, brown et al.
    Big Business is of course delighted.
    We must have flexible labour markets then we return to good working practices of spouses waiting at docks for work which may or may not come, wonderful economic insecurity! (just penalise benefits claimants and forget tax evasion which can more than plug the gap).
    So my attitude is I am gonna live my !!!!ing life as I see fit: High qaulity. There is so much !!!!ing !!!! in terms of product qaulity leved at poor and I aint' buying it,(slag me off here here here here ) Qaulity is a cheaper decision.
    I used to have SKY but I find it cheapskate and mean with programme content, a total waste of money, Only Free Sky unless I need a French film Channel. French is good for brain.
    I need to be enrolled on various Challenges here as good idea but I wait for the misunderstandings and judgments ato arise. It is not my fault I was made redundant. The mathematics of job seeking mean 100 applicants to 1 post.
    At my age 50+ employers view me as over the hill.
    I wish people would use their brains more and don't take to hand all the media dole out by them and read !!!!ing books to find out what the hell is going on.
    My mum buys low spends high quality, she is a woman of qaulity and it pays her back in various means.
    I believe in qaulity and praise the lord own a beautiful Iphone 3GS this means I can download maps of the Highlands and use the GPS on it to help me find my friend, a talk and texter you so espouse won't do that.
    My iphone makes up for the slaughter of adult education going beyond cookery classes to real academia.
    My apps can mark my maths work better than an disinterested teacher only allocating me 10 minutes.
    No Maths teacher to touch me up in my attempt to overcome maths problems and become whole.
    I proudly own a laptop repaired by brother and a pc, proudly have my books.
    Reading is cheaper than going to the pub but I have had pub periods.
    GPS on Iphone can help me calculate mileage etc on walking routes. I can monitor my habits so I make good virtuos ones, diet etc.
    no !!!!ing bank is gonna tell me what to spend or not on basis of my statements. I would act prudently to keep my mortgage intact and have a lifestyle that is high qaulity but cheap.
    I resent the corporate data mining that is at our expense.
    I hope i make my point clear. There is no excuse at such patronising action. Quicken withdrew its Consumer Software to grovel at Businesses, We need all the Software help we can get to help us run our budgets.
    Big Business gives us a little as humanly possible at the greatest possible cost.
    I rest my case (judgements stand here and I will stand here proud, erect, good looking, looking great, with iphone etc in hand seeking many ways to make a budget).
    Lois Mc Qaunt Punishing the poor Neo liberal regimes creating economic insecurity. On wish list
    Chomsky the manfacturing of consent.
    Chomsky Profit before People
    Frances Fox Piven Regulation of the Poor Got book but will read.
    Shock Doctrine No Logo Naomi Klein.
    #TY[/B] Would be Qaulity MSE Challenge Queen.
    Reading whatever books I want to the rescue!:money::beer[/B
    WannabeBarrister, WannabeWife, Wannabe Campaign Girl Wannabe MSE Girl #wannnabeALLmyFamilygirl
    #notbackyetIamfightingfortherighttobeMSEandFREE
  • gadgetmindgadgetmind Forumite
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    beachie wrote: »
    The only essential things on there are the mortgage and groceries - which are really high anyway!

    And council tax, insurance, electricity, gas, water ...
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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