Mortgage I can't Afford

kunekune

I do think it is strange to assume that no-one can afford a mortgage at the age of 51. Plenty of people can and do.

Conrad

Brian, did you read my comments on how to complain?

You also since state the adviser had arranged your previous mortgage on a repayment basis so you might be able to demonstrate unusitable advice on that front also - why take you from a secure repayment basis to interest only? (I suspect the reason was that he well knew you were about to be made redundant which further displays a cavallier approach).

Anne3333

Most brokers would show you a Key Features Document for both a Repayment and Interest Only mortgage for you to compare the costs. Given that you were aware from the outset that you were about to be made redundant, would you not have chosen the cheaper alternative at the time anyway?
I personally think you should be very careful about putting in writing that you knew you were aware of your redundancy prior to signing the offer. Could the broker not report you to the lender for false information to them, hence it would be a fraudulent application?

UK007BullDog

The only thing you can do is to sell up, pay off all your debts and rent a cheaper place. Thats it. There is no way you will be able to remortgage as the lenders will lookvery hard at your income. The rates are going up. You would be stuck on their SVR and that can get very costly for you.

Also once you are a pensioner how would you keep paying the mortgage? What income would you have then?

Sell and become free. That is the only option.

steve0115

I think the people here being harsh are the ones with money. You cant blame one person who takes advantage of the situation. There was a documentary on itv over TWO years ago, maybee 3 and they visited 10 banks and brokers. Nearly every one of them were openly advizing to falsify the figures to enable the poor person, ie undercover reporter, to buy one of the nice £165,000 houses that they were just looking at in the window, 35 seconds ago. . Him and millions more have helped overinflated house prices what they are today. They have allowed people to deeply believe in the fairy tale that anyone can buy a house to live in that they cant afford. Then end up selling for a nice profit. Therefore the fact you cant pay for the house is gone. Sell it or re-mortgage, pay the debt and keep the big fat profit. It sounds easy when someone is selling you a dream and over time it is. The trouble is that these people were given time ie, low rates with 2 yrs and then probably told. DONT WORRY!! Just re-mortgage to another with a great introduction rate. Now Times have changed, the BANKS have changed thier minds and they want paying in large quantities. My next prediction is that house prices go down, the banks buy all the houses they can. They then rent them back to us in the millions, I believe this would now be legal and a few years ago it wouldn't have been, I may be wrong, and as if by magic, house prices and rent shoots through the roof again.
You cant blame anyone but the regulators, ie the governments for letting it happen. Or should I say making it happen. Self cert should NEVER have been allowed in residential, buy to live in, mortgages, and that is the root of the problem. American estate agents were hanging around the prison gates waiting for new customers and perhaps we were heading the same way.
All you see on the news now is BAD news about house prices. All you saw back then was GREAT news with a sunny future. We were also heading for a massive shortfall in our housiong stock. Another reason for us to think houses will always be in demand and the market was 100% stable. The banks know that house prices will one day go back up at the staedy rate they always have done, so negative or low equity is only a short downward slope on a graph that only will ever go up (subject to global catastrophe). They could work with people and structure deals but they dont do that do they. It a bloody conspiracy I say and as usual they will win and the people who are supposed to matter will lose.

Anne3333

I agree with you Steve0115, however just because somebody tells you to jump, doesn't mean you should do it. Self certifying your income is a fraudulent offence, the reason the multiples of income are there is to try and ensure affordability and to allow for possible interest rises. There is no doubt that the lenders have been greedy, but giving false information just adds to the problem. The banks wont suffer, it will just be the homeowners and the taxpayers. Their profits will be cushioned at the expense of the rest of us!
I do have sympathy for Treaddie, but he needs to recognise he made a mistake and move forward now. The CAB are great for helping people with debt management and will help him to reassess his difficult situation. Instead of paying MPs exhorbitant expenses, they should fund more CABs as I think they are going to be much in demand in the coming year!

silvercar

You cant blame anyone but the regulators, ie the governments for letting it happen. Or should I say making it happen.

So when someone says, "just sign here that you are earning 3 times your current salary" that's OK?

Self cert should NEVER have been allowed in residential, buy to live in, mortgages, and that is the root of the problem.

Self cert has its place, it became acceptable as a way of securing a mortgage for the self employed whose earnings on paper were low in order to minimise taxs, but their income was larger. When used fraudulently it is open to abuse.

dunstonh

There was a documentary on itv over TWO years ago, maybee 3 and they visited 10 banks and brokers. Nearly every one of them were openly advizing to falsify the figures to enable the poor person

Hardly reflecting the read world position. The documentary research would have identified firms that have a reputation for doing that. So, they visit those.

Regardless of the rights and wrongs of telling lies on an application and who may be culpable, the fact does not change that the person applying for the mortgage was told the monthly cost of the mortgage with the deal and also the cost under the Standard variable rate and given a warning it could go up higher.

Anyone that disregarded that warning and the higher figure only has themselves to blame.

dwsjarcmcd

steve0115 wrote: »

I think the people here being harsh are the ones with money

Maybe, but more likely those with a little bit more intelligence. People earning £15k MUST know they can't afford to repay a £108k mortgage

steve0115

Intelligence may not have come into it for some. The chance of a new house, a new baby on the way and a nagging girlfriend. Some people probably didnt have a choice as the opportunity was there. Self cert is not in itself bad I agree. I am a self employed brickie and will be my only chance. Its just the fact that it was made so easy and available to so many. Surely you would all agree that some of these people WERE mis-sold self cert deals, which weren't designed for them. Intelligent and not so intelligent people all want to buy homes and brokers were probably raking in nice commission cheques. I dont doubt for 1 minute that the worst ones were preying for the next mug to walk through the door. And if you dont think that reflects the real world just turn on the tv. It obviously wasn't a few isolated cases..