MSE News: Mortgage prisoners need help to escape costly loans, watchdog told

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  • hillcats
    hillcats Posts: 899 Forumite
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    edited 7 April 2012 at 12:50AM
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    In short :
    1. If you fail to prepare then you must prepare to fail
    2. Budget and live within your means, not the jones' next door
    3. Always expect the unexpected, including a base rate rise

    Lastly, I personally don't think people should get help as they signed up for their own mortgage, they should ensure they can afford to pay if rates rise. If they didn't understand then they shouldn't have signed the documents as they are clear with regards to the starting rate and the follow on rate and the type of mortgage it is.
    ORIGINAL MORTGAGE AMOUNT £106,454.00 (Started Sept 2007)
    NOV 2021 O/S AMOUNT £1,694.41 OUR DEBT REDUCED BY £104,759.59 by std regular, over-payments & off-setting.
    BofE +0.19% Tracker Repayment Offset Mortgage Discounted Sept 07-10 then increased to BofE +0.62% until 2027
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    hillcats wrote: »
    Lastly, I personally don't think people should get help as they signed up for their own mortgage, they should ensure they can afford to pay if rates rise. If they didn't understand then they shouldn't have signed the documents as they are clear with regards to the starting rate and the follow on rate and the type of mortgage it is.
    What purpose do IFAs and mortgage advisers serve then?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Consumerist wrote: »
    What purpose do IFAs and mortgage advisers serve then?

    To match consumers requirement to the right lenders.

    Not to read tea leaves and predict events 5 years into the future.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    Thrugelmir wrote: »
    To match consumers requirement to the right lenders. Not to read tea leaves and predict events 5 years into the future.
    It seems to me that those advisers who were recommending 120% mortgages a few years ago are now blaming the consumers for accepting their advice. Their fat commissions had nothing to do with their recommendations, of course.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Consumerist wrote: »
    It seems to me that those advisers who were recommending 120% mortgages a few years ago are now blaming the consumers for accepting their advice. Their fat commissions had nothing to do with their recommendations, of course.

    Whats the relevance? The consumers had already spent the money. So actually it was a way forward. As the debt was now incurring a much lower rate of interest.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    Thrugelmir wrote: »
    Whats the relevance? The consumers had already spent the money. So actually it was a way forward. As the debt was now incurring a much lower rate of interest.
    Sorry, don't quite follow that. What has been spent when applying for a mortgage?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Consumerist wrote: »
    Sorry, don't quite follow that. What has been spent when applying for a mortgage?

    120% mortgages were used to consolidate existing debt.........
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    Thrugelmir wrote: »
    120% mortgages were used to consolidate existing debt.........
    So what you appear to be saying is that banks did not grant 120% mortgages to first-time buyers. Is that your point?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Consumerist wrote: »
    So what you appear to be saying is that banks did not grant 120% mortgages to first-time buyers. Is that your point?

    I'm unsure what your point is. As you obviously don't know why 120% mortgages were advanced in the boom years.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    Thrugelmir wrote: »
    I'm unsure what your point is. As you obviously don't know why 120% mortgages were advanced in the boom years.
    Quite right, I don't. Never had one myself.

    What I don't understand either is that consumers are being criticised in this thread for having accepted them on the advice of the "experts" in the field viz. mortgage advisers and IFAs.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
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