Smi/interest only mortgage

2

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  • dunstonh
    dunstonh Posts: 116,030
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    Pixie5740 wrote: »

    June 2013
    May 2016
    May 2018

    As this time around is a year early, does that mean we get to wait another 4 years to be asked the same thing?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Mr ginge- 20k, not that this has anything to do with the initial query??
  • John-K_3
    John-K_3 Posts: 681 Forumite
    Thank you to everyone for your replies.
    In particular Dunstonh.
    As It seems you live in Norfork, I fail to see how you would have any knowledge of House prices in Wales
    Seriously? There are published data easily available, anyone can look them up.

    You seem to be avoiding the question of how much is in the ISA. It sounds as though you may have stopped paying in, and not paid for any insurance, so of course you’ll struggle now.

    This is the result of your choices, there is no-one else to blame her I’m afraid.

    I know that it it not what you want to hear, but you gambled, and lost.
  • Pixie5740, Dunstonh
    You are both obviously very clever, so much so you have exceptional time on your hands to read every forum question, whilst taking great lengths to criticize and not really advise?.
    I would even go as fas saying 'Astute', especially for pointing out that I posted this question before. However now there is the added issue of the new benefit rules, on mortgage payments. Either way, It is still an issue, and I still would like advice. Unfortunately on my previous post in 2016 , i was bombarded with personal and confrontational, personally vindictive messages, and a few sales pitches from some independant Financial Advisors. Sadly that hasn't changed.
  • poppy10_2
    poppy10_2 Posts: 6,574
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    Either way, It is still an issue, and I still would like advice. Unfortunately on my previous post in 2016 , i was bombarded with personal and confrontational, personally vindictive messages, and a few sales pitches from some independant Financial Advisors. Sadly that hasn't changed.
    I don't see any vindictive messages on your old thread. Also across both previous threads you've never really answered the questions that have been put to you by people trying to help.

    According to the Land Registry, the average house price in Wales when you bought in 1998 was £47k. You claim you paid £100k, more than double the average house price.

    It's the equivalent of paying £323k for a house in Wales now. You'd get more than a do-upper 2 bed for that.

    In addition, you spent £40k (almost the equivalent of a whole new house at the time) on improving the property.

    It's inconceivable that your house is still only worth £140k twenty years later. House prices even in the most deprived parts of Wales have trebled over the last 20 years - and that's not taking into account the improvements you have made to it, or the fact that bungalows are in red-hot demand due to falling supply and an ageing population.

    If you won't tell the truth to people trying to advise you, there's little anyone can do to help. That's not vitriol or abuse, just honesty.
    poppy10
  • dunstonh
    dunstonh Posts: 116,030
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    You alienated people in your previous thread in 2016. You are doing it again now to people who did not comment in your previous threads. Its a bit of a habit. Have you considered that all the responses reflect your attitude?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • John-K_3
    John-K_3 Posts: 681 Forumite
    Whits end, your attitude stinks.

    If you were not so sneering at people who took the time to help then the tone of the replies might have been better, but you seem unable to avoid lashing out when people contribute.

    What ideas do you want here? You spent money that you should have been paying off your mortgage, so of course you are going to struggle now.
  • antrobus
    antrobus Posts: 17,386 Forumite
    . However now there is the added issue of the new benefit rules, on mortgage payments. Either way, It is still an issue, and I still would like advice.

    The new SMI rules mean that instead of HMG paying the interest on your behalf, HMG now pay the interest on your behalf and expect to get repaid when the property is sold.

    However, in your case there is no equity in the property, and thus if it was sold HMG would get nothing. So in practical terms, it makes little difference.

    Your basic problem remains as it was, you have an interest only mortgage that will end in four years time and have no means of repaying the capital. You need a lender that is willing and able to extend the term of that mortgage until both of you die and they can get their money back.

    I am not a mortgage broker but I doubt that there are any lenders out there who will offer that kind of deal. I suspect that your only option is to persuade your existing lender to practice forbearance. If in four years time they threaten repossession, well two things; it will cost them money in terms of legal fees, and it will likely cost them in terms of the fact that repos frequently sell at a discount.

    So rather than take a hit of £20k or so, they might be prepared to do nothing and continue to earn 2.61% on the asset. Or thereabouts, because that's what the SMI rate is currently.

    I have no idea of whether they would or not. They might decide to go nuclear to get it off their books. In which case you will have to wait for the eviction and throw yourself on the mercy of the local authority.
  • Thank you Antrobus. Actual advice. !!!!!!.
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