An example of the sheer insanity of the house market

space_rider

I got a letter from my mortgage company Abbey asking me if I want an additional loan of at least £5000. Could be tempted if I was really stupid and didn`t read papers, listen to the news or trawl the internet. I do have a big deposit but still doesn`t make sense that they are offering me this in the current climate. I guess some people would think that well if they want to lend it me then I must be able to afford it!

iyiarz

Sorry, I have no symathy whatsoever for this person. How irresponsible can you be ? When working out how bigger mortgage I can have, I find out what we could borrow, then halve it. Playing it safe. We are currently looking at moving. We could have £260k, but £130k + our deposit will give us a £200k house. The repayments will be managable, even if one of us is not working.

Starz_Ceilings

iyiarz wrote: »

Sorry, I have no symathy whatsoever for this person. How irresponsible can you be ? When working out how bigger mortgage I can have, I find out what we could borrow, then halve it. Playing it safe. We are currently looking at moving. We could have £260k, but £130k + our deposit will give us a £200k house. The repayments will be managable, even if one of us is not working.

The difference is that you are sensible. And a lot of people are clearly not. They will borrow the absolute maximum of what they are allowed without a thought of how they will afford to pay it back. The lenders are at fault a lot of the time for offering people this kind of money.

Neillgb

The country as a whole has gone mad with regrd to money.

This woman will end up in social housing and we will pay for her and her offspring. Hubby has of course done a runner coz it suits them both financially. She and her kid gets hand outs and hubby works cash in hand cabbing. Probably stashed away loads of cash anyway when they realised the game was up.

I would be ashamed to appear in a national paper admitting i couldn't pay my debts. This woman obviously has no shame, probably hoping to get a few quid selling her 'story'. Awwwww......bless.

Dithering_Dad

poppysarah wrote: »

banks need to have some very strict rules about lending people money.

They used to - when I bought my first house in 1995 the rules were that as a single person I could borrow a maximum of 3x my salary and I HAD to put down a 5% deposit.

I was earning about 18k and so was allowed to borrow upto £54k, but I baulked at the idea of having so much debt and so bought a little two bed bungalow for 40k instead, with a mortgage of 38k and deposit of 2k.

If the banks had kept to this simple formula, then house prices would still be in line with people's wages and we would not be in the mess we are now.

ler01kjh

clobber wrote: »

The mind boggles.

I feel a bit sorry for them. .

I don't feel sorry for them. You reap what you sow. Why is everyone else to blame when things go wrong. If kids go off the rails, it's society's fault, not the parents, if people borrow too much, it's the bank's fault, not theirs.
Repossessions, however bad they may be, will teach the country another lesson in prudence and financial management - its down to individuals to take responsibility for a change.

guppy

I'd have more sympathy if they weren't, as neillgb points out, completely shameless and unapologetic for their own greed and stupidity.

bo_drinker

How can anyone have an ounce of pity for them. Clearly brain dead half wits, as was the spotty oik that threw another 60k at them, go on it's only money. It's because of these stories is why we are where we are with things today. That is one example, how many more are lurking, thousands no doubt. F.kn idiots.

bo_drinker

I stand by my words. I wonder why Northern Rock are in the position they are in today. Kept afloat by the tax payer. Where were their heads when signing the dotted line, obviously where the sun dont shine. Tell it like it is, a spades a spade around here.

*Louise*

Hector-The-Inspector wrote: »

*Louise* wrote: »

I feel sorry for them - they obviously stretched themselves beyond their means

Maybe the original £1,500 mortgage was easy for them to pay. They weren't to know that they would split up, and maybe didn't consider the extra £800 it would cost when the fixed rate term ended.

I can't get over the madness of them getting an extra 60k though! (Wonder what they spent it on...)

It's a shame...[/quote]


Probably,

New taxi.

New car for the wife.

New Kitchen.

New bathroom.

And a few exotic holidays.


It's a crying shame!

That's your assumption


Nothing wrong with having a bit of compassion for other people, not everyone is clued up about the financial side of life.

Yes, they have obviously been stupid getting into that situation...but someone even more stupid gave them the money in the first place.