Catastrophic Missive Fees

Captain_Mainwaring_2

siowenson wrote: »

Well done! I congratulate you on your superior decision.
You buy and sell property and make a decent amount out of it if I'm not mistaken?
I, on the other hand, have owned my flat for only 3 years and want a house to raise my family.
I made my decisions based on what was happening around me with regards to ALL the flats in my area selling very quickly.
Maybe in the areas you live people have been struggling to sell but it wasn't untill all the morgage lenders withdrew their deals from the market that people here have had problems selling.
This is a recent peice of news. Dont tell me last year you foreseen the banks making it hard for people to make a purchase/remorgage by taking 80pc(est) of their products from table?

You're mistaken.

It's all very well maintaining that "well normally they sell quickly" , it's like the guy whose dog had just bitten someone's face off "well that's odd, he has never done that before".

And yes, I did see the bank getting tough - look at how much they have lost with the new bankruptcy laws, and just how acceptable it is now for people to take on credit that they have no intention of paying. Agreed 15 years ago I was miffed at being charged £30 to bounce a £10 cheque, but I was well aware of the penalities, now we are encouraged to claw back fees for every contract we have entered into.

Want Want Want. Yes, we all want more and bigger, but the trick is being able to fund it, a look at your finances suggests that you needed to be very careful about a signing a contract the gave away your backside.

If you can accept Persimmons offer for a partex and borrow the money you need to get yourself out of this pickle then you stand a chance of not taking too much of a hit.

Captain_Mainwaring_2

siowenson wrote: »

Wouldn't it be great to own a bank: they can reduce the interest rate so low that everyone thinks they can buy a house and then gradually increase the rate to squeeze every last penny from their customers.

I dont know how they sleep at night!

I had just a bit of sympathy for you, but that comment has just dissolved my sympathy. The interest rates at the moment are pathetically low, and look at the results.

You wait until the rates hit 8 or 10%, then you will be selling the kids.

beecher

Captain_Mainwaring wrote: »

I had just a bit of sympathy for you, but that comment has just dissolved my sympathy. The interest rates at the moment are pathetically low, and look at the results.

You wait until the rates hit 8 or 10%, then you will be selling the kids.

And maybe that's the biggest difference between people below 40 and people above 40 - we have a completely different concept of what a high interest rate is. When I first bought I was advised that money would never be so cheap as it was then - the rates on offer were over 8%! So I still see 6% as being relatively low, and believe they've still a way to go.

Captain_Mainwaring_2

beecher wrote: »

And maybe that's the biggest difference between people below 40 and people above 40 - we have a completely different concept of what a high interest rate is. When I first bought I was advised that money would never be so cheap as it was then - the rates on offer were over 8%! So I still see 6% as being relatively low, and believe they've still a way to go.

Well you found me out...

My mortgage interest rate went up to 13.8% from 8.5%, that made me stand up a bit. I think that had the rates gone up harder earlier then the forthcoming crash could have been minimised a little.

The OP needs to take some pretty drastic action to avoid getting in a right mess.

siowenson

If you can accept Persimmons offer for a partex and borrow the money you need to get yourself out of this pickle then you stand a chance of not taking too much of a hit.

At last, a constructive comment.


I'm still waiting for the p/x offer from persimmon, hopefully I should find out on monday. The maximum they can offer is £128k, going by the 30pc rule they have, so god knows what they will actually offer.
My MA told me I wouldn't be able to take out a loan to finance the £9k deficit as it would effect my credit rating which would in turn cause me to be rejected a morgage.

beecher

siowenson wrote: »

At last, a constructive comment.


I'm still waiting for the p/x offer from persimmon, hopefully I should find out on monday. The maximum they can offer is £128k, going by the 30pc rule they have, so god knows what they will actually offer.
My MA told me I wouldn't be able to take out a loan to finance the £9k deficit as it would effect my credit rating which would in turn cause me to be rejected a morgage.

I think there have been a lot of constructive comments on here, though I accept it must be difficult to read them when they're not always saying what you want to hear.

Good luck with the persimmon offer - I had assumed they'd already offered you £128k. Seems unlikely if they see that you have it on sale for less. Good luck in whatever you do - you also need to work out if the new house is affordable for you I suppose.

BettiePage

Captain_Mainwaring wrote: »

Well you found me out...

My mortgage interest rate went up to 13.8% from 8.5%, that made me stand up a bit.

I bet you didn't have anywhere near the amount of debt then, that the average person does now? Plus, it'll be a higher interest rate on a larger mortgage amount than back then too.

Ouch!

siowenson

Sorry, I should have specified: it was the first from the captain.

I've had lots of help from this thread and it has been much appreciated. Thanks all. :beer:

If you think of anything else, don't hesitate.

Captain_Mainwaring_2

siowenson wrote: »

At last, a constructive comment.


I'm still waiting for the p/x offer from persimmon, hopefully I should find out on monday. The maximum they can offer is £128k, going by the 30pc rule they have, so god knows what they will actually offer.
My MA told me I wouldn't be able to take out a loan to finance the £9k deficit as it would effect my credit rating which would in turn cause me to be rejected a morgage.

You had plenty of advice, but it seems you know better .

As expected you are confirming that Persimmon won't actually pay you 128K, but possibly around 70% of this. What happens to your plan now if you substitute 90K for 128K?

Seems you are back to paying £1500 a month until they remarket it, and with them making £1500 a month I'm not sure they will exactly hurry the process, but then you know that don't you?

Captain_Mainwaring_2

BettiePage wrote: »

I bet you didn't have anywhere near the amount of debt then, that the average person does now? Plus, it'll be a higher interest rate on a larger mortgage amount than back then too.

Ouch!

I had a reasonable mortgage and I had just bought a brand new JCB on finance. If you are asking whether or no I had credit card debts for flat screen TV's and holidays then the answer is NO.

3K a month was going out in interest only at that point.