BBC PANORAMA Mortgage Prisoners

gasman786

Im with Landmark and feel trapped and unable to move. My debt is £70'000 remaining , 18 years remaining, standard rate at 4.7%. Ive never been offered the chance to go onto a lower rate with Landmark even though when they took over the debt they were apparently told by the government to start offering better rates to customers and the option to switch to these rates, which they said they would but have clearly ignored that once they took over. Making obscene profit in the process at our expense.

The idea that "bad debters" were moved to landmark is simply not true. I have never missed a payment in 12 years, always been on time. Never had any payment issues. My credit rating is excellent, my house value is double that of the mortgage remaining. I have no idea why i find myself stuck with Landmark. The government really needs to step in here and force Landmarks hand to get them to honour their promise of offering better products to existing customers.

Thrugelmir

gasman786 wrote: »

Making obscene profit in the process at our expense.

I have no idea why i find myself stuck with Landmark.

Any substance for this statement?

I'm sure a mortgage broker could help you or at least identify the underlying issues. Your property while being worth the double the debt owed is usefull. Not a basis that any mortage lender will advance monies on though.

jayne7868

There are Huge differances in the term mortgage prisoner



I - Have 50% equity
Never missed a payment
Stuck with Landmark as i was sold out.


The Government sold us to a NON lending Consortium.


We are stuck



Weather you have little equity or loads

Weather you make all payments or not.


Over the last decade we have been given empty promises about new lending as was stated on the agreement highlighted on the program..


Govenment changed lending criteria and i dont know anyone who has got off this one way to hell road we are on...



If the 'tax payer ' is happy with the sale then prehaps they want to have a look at the public document on how much it cost and the tax dodging implications it cost you country... That would wipe the smile of your faces!!



This is a SCANDAL


nothing more -

Thrugelmir

jayne7868 wrote: »

We are stuck

Rather than rant. Use MSE to help address the personal challenges you face. Whatever they maybe.

kwame41

While I do feel for these people,

We need to remember that they borrowed far more money than they could probably afford. Ive heard 125% mortgages.

This was great at the time. The banks were happy to lend and buyers happy to borrow.

The market crashes and people become stuck because the original loan was unnafordable given their circumstances. Ergo, new applications to 'escape to a better deal' now fail because of more stringent checks by the banks.

People are now at the mercy / stuck with companies prepared to buy the debt so the Government can unload it.

Irresponsible lending and sorry to say borrowing was the cause of the crash.

dunstonh

The idea that "bad debters" were moved to landmark is simply not true. I have never missed a payment in 12 years, always been on time. Never had any payment issues. My credit rating is excellent, my house value is double that of the mortgage remaining. I have no idea why i find myself stuck with Landmark. The government really needs to step in here and force Landmarks hand to get them to honour their promise of offering better products to existing customers.

Not sure where you got the idea it was "bad debters". It wasn't. It was the mortgages that were deemed to be above a certain risk level (in terms of default).

If your situation is so good, then why haven't you remortgaged to a new lender?

dunstonh

I - Have 50% equity
Never missed a payment
Stuck with Landmark as i was sold out.

So, if your situation is so good, why have you not remortgaged to a new lender?

This is a SCANDAL

its not really as had the Government not stepped in and no buyer for the mortgage book found, then it would have involved administrators being appointed and the debts called in. Forced repossessions would be a lot worse.

It will be extremely frustrating to those that cannot remortgage to a new lender. However, it could have been a lot worse.

boatman

There a few too many holier than thou on here.. Its easy to pick holes in the example shown in the programme, Yes there are some I'm sure have made some bad choices but equally I'm sure there are those that have lost their job, had kids, suffered illness and many other reasons and found themselves stuck on a high rate. Whatever the ins and outs of the personal circumstances, it doesn't change the fact that the current situation and for past few years has been badly managed at the very least, exploited is probably closer to the truth, the companies have still not offered an alternative rate, which they hoped would be less and more in line with recent rates. Those least able to deal with the fallout of the banks bad behaviour have been hung out to dry.

kwame41

I suppose the argument stands that if people are keeping up with payments at higher interest rates but cant re-mortgage due to affordability that feels wrong.


Perhaps someone who knows more about it could comment on how these people could be helped to a better deal and circumvent the affordability issue under current legislation.


I know it has been mooted that something should be done to help but what I wonder?

boatman

kwame41 wrote: »

I suppose the argument stands that if people are keeping up with payments at higher interest rates but cant re-mortgage due to affordability that feels wrong.

Yes, exactly.



Even if they could satisfy the rules today, doesn't mean they will in 6 months or a year, and that applies to pretty much anyone. So to single them out, is as you say, just wrong.