Used their home as a cash cow through re-mortgaging.. now in deep do do

Road_Hog

RenovationMan wrote: »

I bet their kids still go to private school.

Of course they do.

"But I’m writing this tentatively, because I know the reaction I’m going to get when I admit that I determinedly continue to send two of my children to private school."

http://www.dailymail.co.uk/femail/article-1332846/Take-girls-private-school-Id-starve.html

homelessskilledworker

SailorSam wrote: »

I know two people who are similar, one was given their house so had no mortgage the other only a small mortgage 'cos of the help they received. The one who started with no mortgage has now had the house reposesed and living in rented 'council' property, the other is on-the-brink. If interests rates start to rise or one of them falls out of work, even the talked about changes in benefits for children maybe the killer.
Why do people only live-for-today and feel the need to show neighbours how well they are doing.

I suspect there are many more people like this, I also know of half a dozen that are similar to these deluded people.
When we do find out the numbers that were in big trouble for a long time will be IF we get a property crash. For every person you thought was in ddep trouble their will be a dozen more keeping a stiff upper lip, seen it in the last property crash.

Jennifer_Jane

Graham_Devon wrote: »

I disagree. If they hadn't gone IO they wouldn't have been able to afford the house in the first place. They make that clear.

I assume, they, like so many others, only went IO as it gave them a bigger house than they could actually afford via a repayment mortgage. Trouble is, bigger house means bigger maintenance, something they clearly couldn't afford.

Remortgaging to pay for the upkeep is a symptom of the IO mortgage allowing them something they couldn't afford to run.

Graham, I think this has been answered before this reply, but yes, of course, you are right. Interest-only payments are, obviously, cheaper than repayment. As I said it was the ONLY way I could buy this house, and it was repaid after 9 years. You have more control over your monthly finances if your mortgage is smaller, but you can still repay 10% when you want to. The reason I always stick up for IO mortgages is because I'm so grateful that they have them here. It's not the fault of the IO mortgage (although I concede you can be lazy about them), this is all about their stupidity and greed.

Butterfly_Brain

Live like Kings fall like Paupers

Jennifer_Jane

MrRewind wrote: »

I really do take offence to this thread on here and especially over on HPC as the vultures gloat over others misfortune. At the end of he day it is none of your business what people do regarding the finance of their homes. That is simply between the bank and the homeowner.

Ah, MrRewind, I so disagree. If someone publishes their story in the media, especially a journalist publishing in their own paper/website, then it's open for comment.

As someone else said, it may well have been published purely for shock value, otherwise it does seem that Daily Mail journalists are hopeless at managing their money (like Liz Jones).

shortchanged_2

Surely this story has to be a joke.

Because it blatantly smacks of the sort of story that most people would unsympathetically say 'Oohhh, my heart bleeds for them.'

Why would anyone with any sense of fairness have any sympathy for them. They got their just desserts. Simple.

busybird

We too were very grateful for the IO mortgage, which we switched to a few years ago. We, like many others it seems considered this our dream house ten years ago - a bit of land and potential for a couple of stables, with two older children (one at Uni, one very horsey) and three ponies who at that point we were paying for to be kept at livery. We had a reasonable income - running a small business. We had worked our way up the property ladder buying our first house back in the seventies when we were first married and made some good decisions along the way with property, including a self build and developing some land into equestrian use, hence enabling us to realise the 'dream'. All of our income and savings went into renovating the house and bringing it to a very acceptable condition. However, as we all know, sometimes things don't go to plan, and our very comfortable income dropped considerably when we lost a big contract and to tide us over, we decided to convert our mortgage to IO, realising that we wouldn't be staying here for ever and a day. Now the time has come when we know we have to 'downsize' as the grown up kids have really grown now and flown the nest. We are being realistic. Therefore our house is on the market - not a great time to sell and our fixed rate mortgage deal has ended so we are looking to re-mortgage, taking a little extra to give us a small cushion whilst we are waiting to sell at a sensible price, rather than a throwaway figure. The amount we are asking for is around 25% of the value of our property. Our credit rating is as good as it could be - no bad debts, never missed a payment, never been late with a payment, any loans repaid in full, often early. The repayment of a new deal would be considerably less than we are paying currently and is affordable. My husband has been self-employed for about 35 years, and I work part time on a self-employed basis (about 12 years). Our income does not warrant the amount we want to borrow, but the house is full of equity. We are well aware if we sold quickly that we would take a hit with any new mortgage deal with the repayment penalty but that's factored into our plans. My point being that not everyone takes an IO mortgage to live beyond their means and we are being realistic by recognising that long term we will never be able to afford to finish paying for this house, nor do I want to live frugally in order to stay here so this is the sensible option. It is just a shame that a re-mortgage is proving very elusive to us, purely because we are self-employed and our income has dropped and our 24% LTV is not of any consequence.
I think we are quite different to the author of the article in the Mail today, but it did strike a chord when I read it.

nollag2006

IveSeenTheLight wrote: »

Were looking at private schooling for our children.
One of the perks from owning rented property is that the income can pay the school fee's.
We've even discussed from a worst case example of if we had to sell the properties in order to pay the fee's then we'd seriously consider doing that.

One of our primary views is that our role as parents is to provide as best an education opportunity as we can, thus hopefully allowing our children to start from a better position than we did.

I'd rather own less and provide better for my children if the needs arose.

Fully agree with this. The state schools around my way are good, but I'd really want my kids to attend private school whatever the cost to me personally.

At least with BTL, we have an income stream to pay school and college fees and then something to hand over to them once they are old enough to want their own place.

michaels

Euch - I now know much more about this couple than I would ever want to...

http://www.womanandhome.com/articles/yourlife/relationships/296886/the-4-secrets-of-amazing-sex.html

chalkie99 wrote: »

Try Googling this woman's name.

She loves the limelight

http://www.google.co.uk/search?sourceid=chrome&ie=UTF-8&q=SHONA+SIBARY

mildred1978

IveSeenTheLight wrote: »

Were looking at private schooling for our children.
One of the perks from owning rented property is that the income can pay the school fee's.
We've even discussed from a worst case example of if we had to sell the properties in order to pay the fee's then we'd seriously consider doing that.

One of our primary views is that our role as parents is to provide as best an education opportunity as we can, thus hopefully allowing our children to start from a better position than we did.

I'd rather own less and provide better for my children if the needs arose.

I think even state schools teach correct use of the apostrophe. You must not have been there that day