Young Home-Owner (18 years)

Gorgeous_George

Trollometer at Red 10.

Larry or Harry, don't make I laugh.

GG

HugoSP

chriz1000 wrote: »

.........Can’t you move back in with your dad and rent out the property for now? Then in a few years when you can afford it move back in?

A good idea in principle but the lender may not allow it without switching him to a btl mortgage at around 0.5% more, they may not even do that if he is still in his fixed term unless they hit him with penalties etc.

nick74

chriz1000 wrote: »

How in the name of god did they pay that back?! Or didn’t they?

The only completed on the house in the spring of this year (the girl is a former colleague of mine, they're both in their mid 20's). We suspected that it would have been repo'd by now but there still living in it! They are apparently struggling even to pay the electricity bills, its a large and very run down detached farmhouse. They bought it to do up, hopefully to make a substantial profit, but the mortgage interest payments are crippling.
They originally had to apply for 5 different self cert mortgages before anyone would accept them.

dunstonh

They originally had to apply for 5 different self cert mortgages before anyone would accept them.

Thats the reason. They had to self cert which almost certainly meant they lied about their income.

It's all very well blaming the mortgage advisers that get involved in doing that but it takes two to tango. Obviously, after trying 5 times and being rejected, they were not clever enough to realise that they couldnt afford it and then had to lie to get it and found someone that was willing to do it.

I have some sympathy for mortgage advisers today. When I used to do it you would try and stretch the income to get the multiples and would do everything you could to try and help them. Difference was back then you were talking probably no more than £5k borrowing (about £35pm). Now, people have been doing this for £50-£100k and thats a different matter.

The mortgage brokers that are dodgy deserve everything they get but the genuine ones that have tried to help risk getting caught up in witch hunt. Many of these havent been doing the job long and dont know the score from past major complaints (where even those linked to the FOS have agreed that too many people on the pensions and endowments reviews got paid redress incorrectly and the system favoured telling lies).

They dont realise that people dont complain until it goes wrong and then when they do complain they tend to spout a whole load of lies because template letters are put on websites to encourage them to do this because if they know what to say and how to word it they can get their money back and take no personal responsbility.

I appreciate that brankruptcy and property repossession effects the financial market but you can be reassured that my house would be sold before repossessed if it ever came to that situatuion.

I was doing mortgage advise during the last property price crash and I can tell you that if it happens again you wont get a chance. People stop buying, prices drop and you can end up in negative equity unable to sell. Repossession follows not too long after to those that have stretched themselves.

nick74

dunstonh wrote: »

They had to self cert which almost certainly meant they lied about their income.

Indeed they did. They were quite miffed when one of the mortgage lenders asked for a copy of his accounts (he's self employed). It would have shown that he had only been trading for just over a year, making a fraction of the profit he had claimed he was making. That was the end of that application . . .

SquatNow

I hope thhe OP likes living in basic conditions because he'll be working a fair few years in the camps to work this debt off.

$$$_12

To the OP please could you let me know which bank you are using for your mortgage so I can make sure I have no money in it.

Larry365

Thank you everyone who has given me positive advice on how to help me in this situation. I shall certainly consider a lodger and i noticed a few comments on the ciggies this would be good advice but i stopped a while back anyway. A second job is also on my mind. Taxi driver seems appealing to me but although not compulsory it helps to be 21. I am learning the hard way. I am only 18. I shall not be loosing my home. I am too determined. Anyway thanks for the help. As for the people who have critized, its a shame. Everyone can critize people who have made mistakes whats hard is helping them get out of them. If you are on these forums to help then why dont you. I was 17 while setting up my mortgage and when a respected mortgage broker and solicitor tell you they are happy to set up a mortgage with false information and that it is the way the world works then you dont see it as much of a problem. I understand that while i can pay my bills if i have a large bill to pay (as someone said, a new boiler) then i will be in abit of trouble. My life style is the same as any other 18 years old if not abit better, drinking and luxuries are included in my outgoings. But anyway those who gave advice i thank you.

danger_mouse_2

Larry365 wrote: »

My parents lived in an old rectory, bought it for 250,000 five years ago and sold for 740,000 2 months ago

Dont want to sound out of line BUT.....................

if your dad helped you set up this mortgage and theyve made a mint on there house sale can he not help you out a little, it isnt a long term answer but the way i undersand it is he knew what was what with the mortgage and you thought it was ok because that was what you were advised is the normal practice, maybe he owes you a little help for his badly judged advice.

just like to add if ive misunderstood the situation, its a little late and ive ahd a few bevvies, lol.

southernscouser

For someone with no or little qualifications you write extremely well! :think: