People in thier 60's being forced to sell homes.

chewmylegoff

wotsthat wrote: »

Flippin 'eck - and you accuse me of inventing unlikely scenarios!

Apart from house crash award of the day why does she need a mortgage until death? Why not for another 5 years and then review again just to make sure her house value hasn't fallen off a cliff and that the deal is still profitable for the bank?

well, she could go batty and live in the house as a hermit, using each room to cultivate a different kind of rot, all whilst not bothering to pay any buildings insurance and not maintaining the roof or indeed any other part of the fabric of the building, before eventually dropping a cigarette on the carpet and burning the whole lot to the ground.

even then the land with a pile of burned bricks on it would probably be worth £300k+ or so.

wotsthat

Neverland wrote: »

Its not exactly easy money if the only way to get the principal back is evict an old woman out of her home or wait for her to die

Makes you wonder why they lent to her IO on a fantasy repayment plan in the first place.

What's changed? The risk? The profitability? Or just the computer?

Neverland

wotsthat wrote: »

Makes you wonder why they lent to her IO on a fantasy repayment plan in the first place.

What's changed? The risk? The profitability? Or just the computer?

Most likely they can't package the mortgage into a security and sell it off to some mug hedge fund who will take all the risk :T

abaxas

wotsthat wrote: »

Makes you wonder why they lent to her IO on a fantasy repayment plan in the first place.

What's changed? The risk? The profitability? Or just the computer?

The pot they were smoking at the time ran out and reality set in

nearlynew

Ignoring the details of this case, there seems to be confusion about the role of the FSA.


The FSA exists, not to protect customers as is assumed, but to protect banks.

Just as every other "regulatory body" protects their bosses.

Neverland

nearlynew wrote: »

Ignoring the details of this case, there seems to be confusion about the role of the FSA.


The FSA exists, not to protect customers as is assumed, but to protect banks.

Just as every other "regulatory body" protects their bosses.

The way things have panned out in this country its pretty obvious that every arm of the government of the UK exists just to protect the banks :mad:

Emy1501

wotsthat wrote: »

Makes you wonder why they lent to her IO on a fantasy repayment plan in the first place.

What's changed? The risk? The profitability? Or just the computer?

I suspect she provided a plan. It would be interesting to know what the plan was and why the plan hasn't worked.

Anyway the fact she has not been able to pay off the mortgage and seems to be offering no repayment tool now would make her a worse risk than 15 years ago,

Neverland

Emy1501 wrote: »

I suspect she provided a plan. It would be interesting to know what the plan was and why the plan hasn't worked.

Regular investment in scratchcards? :beer:

nearlynew

This story is a case of "my house is my pension" bull5h1t hitting the fan of reality.


There are hundreds of thousands, if not millions of these idiots out there and over the coming years many will face complete financial ruin.

That will be a just reward for their greed and stupidity.

wotsthat

nearlynew wrote: »

There are hundreds of thousands, if not millions of these idiots out there and over the coming years many will face complete financial ruin.

That will be a just reward for their greed and stupidity.

Yeah, idiots like these - £500k house and £140k mortgage.