BBC PANORAMA Mortgage Prisoners

jetskidia

https://www.bbc.co.uk/programmes/b0bp2dsj

sammyjammy

high being a relative term of course...

csgohan4

Any reason why they couldn't remortgage with another provider?

Zero_Sum

csgohan4 wrote: »

Any reason why they couldn't remortgage with another provider?

Guessing they took out a silly 125% one & their loan is more than value of house. So no other lender will touch them

System

If you look at the home of that couple who said they're going to have to sell their house because they can't afford the £2500 mortgage payment then it is easy to see that the reason they're struggling isn't the additional £200 a month they're paying in interest but the fact they blow their money on tat. It wouldn't surprise me if she has it redecorated every year and they put up every possible colour matching accessory you can think of.

I find it hard to believe that the additional £200 a month in mortgage payment over the £2300 it would be on the cheapest deal is the cause of their financial woes.

Thrugelmir

Tarambor wrote: »

If you look at the home of that couple who said they're going to have to sell their house because they can't afford the £2500 mortgage payment then it is easy to see that the reason they're struggling isn't the additional £200 a month they're paying in interest but the fact they blow their money on tat. It wouldn't surprise me if she has it redecorated every year and they put up every possible colour matching accessory you can think of.

I find it hard to believe that the additional £200 a month in mortgage payment over the £2300 it would be on the cheapest deal is the cause of their financial woes.

How much was their mortgage debt? If still on an interest only basis that's frightening.

csgohan4

Zero_Sum wrote: »

Guessing they took out a silly 125% one & their loan is more than value of house. So no other lender will touch them

Then the people will need to take responsibility for their actions and not blame someone else. If you mortgage to the hilt, you may risk failing affordability if it is 125%

boatman

It still comes back to the fact that you can continue to pay a higher amount until the mortgage is repaid and yet you cannot move and pay less, that cannot be right. In many of these cases the equity in the house will be much greater than the amount owed, so there is no real risk for the bank.

minimike2

boatman wrote: »

It still comes back to the fact that you can continue to pay a higher amount until the mortgage is repaid and yet you cannot move and pay less, that cannot be right. In many of these cases the equity in the house will be much greater than the amount owed, so there is no real risk for the bank.

That isn't how it works.

Lenders are not in business to repossess homes. They are in business for long term lending which has small margins. Costs of reposession are not in their interests and not in the long term interest of making money on the lending.

Also an asset doesn't help make a mortgage affordable to service.

Thrugelmir

boatman wrote: »

It still comes back to the fact that you can continue to pay a higher amount until the mortgage is repaid and yet you cannot move and pay less, that cannot be right.

Would you prefer the risk remained with the UK taxpayer? UKAR still holds some 100,000 mortgages. A sizable debt is still yet to be repaid.

Zero_Sum

boatman wrote: »

It still comes back to the fact that you can continue to pay a higher amount until the mortgage is repaid and yet you cannot move and pay less, that cannot be right. In many of these cases the equity in the house will be much greater than the amount owed, so there is no real risk for the bank.

There is if they have tons of other debt, which in the case of the person paying £2,500 a month had.

The bottom line is, if you cant afford your mortgage at about 7% rates, you cant afford the house & are living beyond your means. The couple being discussed had their head in the sands & were in complete denial for years. Then coming on tele blaming everyone but themselves (fwiw there was also no mention of change in circumstance from loss of income either). Typical attitude of payday millionaires wanting to live lifestyles beyond their means.