Whats going to happen to those who cant remortgage??

Dick_here

beecher wrote: »

Young people going to university have to get into debt, which again normalises it all.

That is a very good point.

With so many more people encouraged to go to uni these days, and student loans replacing grants to help pay for it, having debts when you start work has become the norm - in fact, almost something to aspire to, to 'prove' you've been to uni - rather than it being shameful as it was a generation ago. Young people see debt as natural, not something to avoid. What's an extra few hundred on a credit card when you owe thousands elsewhere already ? This government has a lot to answer for.

missk_ensington

daveyjp wrote: »

"what sort of idiot would get a 125% mortgage?!?!?!?!"

What sort of idiotic bank would offer such a mortgage?

If banks had stopped their silly offers months ago BEFORE the crisis struck the crisis wouldn't have been as bad as it is going to be.

If the money isn't lent, houses remain affordable and prices stay at a sensible level - the availability of 125% has partly caused what we are seeing now.

Yeah and more over from this, the banks have enticed the avergage couple to lend this much and now aren't prepared to help them when the consequences hit home. The banks are now running for the hills, and leaving Mr Average with his 125% mortgage yet they were the ones who got such people into this mess. You can blame the consumer, however you can't legislate for lack of experience/intelligence/both, and the banks seized this opportunity of uninformed people wanting mortgages. The banks should be forced the offer good deals and lend on the same terms as they did to people two years ago

missk_ensington

Youre absolutely right, student debt normalises BEING in debt. I have £12,000 os student debt when I graduate and like everyone else I dont even consider this as being credit/debt. I list my credit cards, mortgage, personal loan if I had one, as debt, but not student loans cos they're unavoidable.

If like me, you are assessed by student finance and qualify for grants, help with tuition fees, you HAVE to take the maximum student loan (£4,650 or somethinbg like that) before they'll give you the non-repayable stuff, which for me includes childcare grants to pay nursery and hardship grant (not Access To Learning). If I refused to take the full loan, I'd have lost £8,000 a year in grants and would have had to pay my own childcare fees of £140 a week so they didnt leave me much choice!

ianmr65

Persoanlly i hope no one on the board get's repossesed. It's traumatic and horrible.

However it's gonna happen to some people. Now when the dreaded day finally arrives. If the amounts you owe are large, compared to the value of your house: you have some diffcult choices

1) Co-operate with the bank, (who i imagine, have been very sympathetic, so far) and let them, and the rest your creditors chase you for the difference between what they sell your house for, and how much you owe for the rest of your life, iva's and all that.

2) Try to get yourself declared bankrupt, with all that entails.

3) Stick the keys in an envelope send it to the bank, and disappear. (Jingle Mail) It's the banks/lenders problem now.

Many people in the USA (A country in which it's a lot easir to disappear into, i grant you) are going for option 3. Even people with families.

Conrad

Miss K, you ask about starting in the mortgage broking business so I thought I'd give you some pointers.

Firstly understand it is a very difficult occupation nowadays. People think you press a few buttons and hey presto, but nothing could be further from the truth.

As a broker you tend to attract a lot of difficult cases where many conflicting factors are at play.

Of course it is difficult getting cases through now and you will often find you spend days, even months dealing with a potential new client only to then finally get thier agreement to place the deal and find out as you do that the lender has withdrawn the deal, increased rates, stopped lending etc.

I used to be a sales manager and we all agreed that whether you suceeded or failed was down to one thing only;
ATTITUDE.
The sucessfull broker is a driven individual with a keen attention to detail. Just giving out quotes and hoping people come back will not get you far. You have to think perhaps when you are at home 'relaxing' about how tomorrow the local agents will try and capture the person as a mortgage client and what steps you can take to reduce the risk. You have to think about how rates going up should drive you to call that client you saw 3 weeks ago and advise them they might want to get an application in now.
You might give them a quote but then forget to say - this is just a snap shot today, Ill re check tomorrow to reassure your potential client.

All sounds obvious enough eh?
But then I ask you to think about what ALL the contestants say to Sir Allan on 'The Apprentice'................ They all sing out platitudes such as "I am here to deliver", " I wont let you down", "I never fail" "I am a renowned negotiator at the highest level"...........................................................................

Why do Humans say these things and then completely not do them?
How many people have you met that claim they are good listeners? Ive met shed loads yet nearly all of them are'nt at all good listeners - how odd we are in our self perceptions.

The best advice I can give, is that you honestly assess your talents and see if they fit the mould.

I wish you well, and have to say you do come accross as fairly level headed and I would think fairly driven given your strong skating motivation.:beer:

InMyDreams

missk_ensington wrote: »

I mean, what sort of idiot would get a 125% mortgage?!?!?!?! What could possibly be so urgent that you need thousands extra? I bet more people spent it on a new 4x4 or a holiday, and nowe they're moaning they cant remortgage, in negative equity and gonna be re-possessed so I dont have a lot of sympathy!

missk_ensington wrote: »

Thanks, Id love to but I dont graduate from uni til July so dont have an income yet (im currently on a self cert but dont want to remortgage on a self cert). My mum is in the process of getting me put on the books for her company (small white lie I know) so I can obtain payslips before June, get the mortgage and then "quit" mums company, which by then I'll be in full time graduate employment anyway.

A wind-up?

missk_ensington

InMyDreams Im not quite sure I get your point. 125% would put you immediately in negative equity, I am not, and never have been in negative equity. Got my mortgage because I knew I wanted to develop property and have made excellent money doing thus. Also, when I say dont have an income, I mean I dont have an income that is accountable for lending, I actually have an income of £25,000+ a year but none of it is what a mortgage lender would lend on

Conrad, thank you for taking the time to post, your advice is very useful and I will take it on board. I think the best thing in the financial services industry is to be adaptable, if youre stuck with mortgages you wont get far. I'll prob do the harder qualification to be financial advisor rather than mortgage advisor, and then if that doesnt work look at other more specific areas and taking the IFS exams for them

missk_ensington

ianmr65 wrote: »

3) Stick the keys in an envelope send it to the bank, and disappear. (Jingle Mail) It's the banks/lenders problem now.

Many people in the USA (A country in which it's a lot easir to disappear into, i grant you) are going for option 3. Even people with families.

,

It must be so awful to have to do that, imagine having to liove your whole life running away and hiding, always fearful that they'll catch up with you. As some people know, I found out my ex had over 90k of debt when we moved in together and we split up shortly after, but now he moves from residence to residence, never on any council tax, always averting creditors. I dont think I could be bothered with the stress, would rather just face up to it and take the consequences on the !!!

InMyDreams

missk_ensington wrote: »

InMyDreams Im not quite sure I get your point.

I'm sorry if I was a bit short. I am confused how you can on one hand feel that your illegal act is perfectly reasonable, appropriate and sensible, yet on the other, pour such scorn on those caught in a terrible trap, who whilst might not have acted in the most sensible manner at least did so within the confines of law. Calling them idiots now doesn't help. Hindsight is a wonderful thing. If things go belly-up for you, I don't think you'd find much sympathy on this board either.

You want to go into the mortgage brokerage business. Will you be suggesting this course of action for clients in your position?

DaiJoA

missk_ensington wrote: »

Yeah and more over from this, the banks have enticed the avergage couple to lend this much and now aren't prepared to help them when the consequences hit home. The banks are now running for the hills, and leaving Mr Average with his 125% mortgage yet they were the ones who got such people into this mess. You can blame the consumer, however you can't legislate for lack of experience/intelligence/both, and the banks seized this opportunity of uninformed people wanting mortgages. The banks should be forced the offer good deals and lend on the same terms as they did to people two years ago

hear, hear! Our little family of three woudlnt be in the situation that we are now if NR would honour our current deal and port our mortgage. Instead, they were happy to give us £135k, now they want it back plus 5k on top ERC. Either we pay them that and give up our house (yes, yes, we're getting some equity back but that's not the point i'm trying to make - we'd much prefer to move to another house that was actually ours, and pay our own mortgage off, rather than someone else's) OR we sit tight and see where we are in 3yrs. The other mortgage companies wouldnt have to be closing their doors if NR weren't closing their doors on their current customers.