MSE News: Mortgage prisoners need help to escape costly loans, watchdog told

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  • Consumerist
    Consumerist Posts: 6,310 Forumite
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    leveller2911 wrote: »
    Personally I have about £38k saved up for a deposit but unless house prices fall I will stay renting.I'd rather have a life and rent than own and be shackled..When/if we buy it will be a home and not an investment.
    You may find this article, from the <Mail Online> of some interest
    Negative equity is only a problem if you need to sell,doesn't sound like you do..
    Unfortunately, it is also a problem, these days, when you want to re-mortgage at the end of a deal. This is the problem that the FSCP is asking the FSA to look at and provide some interim help.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
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    edited 8 April 2012 at 7:29PM
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    leveller2911 wrote: »
    Well your mistake was buying in 2007,It may well have been the only option for you, don't know your personal circumstances, but 07 was not a good year to buy.Don't forget that interest rates have been at an all time low for that past couple of years, so when you were in a position to overpay savers were getting less than .5% interest rates so you gained and lost but those who rented or no mortgage lost ....


    Unfortunately i didnt have a crystal ball and didnt know we'd be in this position 5 years ago. We took the oportunity to buy as we were getting priced out of the market so bought a wreck as it was all we could afford, spent a lot of time and money doing it it for it to be worth less than what we paid for the 'wreck'.
    We do need somewhere bigger, so need to sell but as i said in last post it isnt possible so we'll have to make do.
    Despite the above i'm still glad we did buy, as we had friends who held out for prices to drop and now as first time buyers cant get a mortgage at all, or are being told to raise 25% deposit, whilst paying twice the amount we pay on a mortgage in rent... and despite the .5 interest rate we havent benefited at all so i wouldnt have minded rates going up,we took a 5.5% fix overpaying was at the expense of holidays, treats and savings, as we didnt want to be in negative equity.
  • Dorastar
    Dorastar Posts: 2,173 Forumite
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    @ Brodie not sure how you or we could have read the future in 2007 we bought then as well and we took advice (we assumed would be good as it was from an expert) and didn't overstretch ourselves either. We are also overpaying what we can but remortgaging seems unlikely although we are waiting on valuation to see how negative our equity is. We didn't get a mega-mortgage or anything outrageous just an 85% ltv nor were we greedy, we just wanted a garden to throw the kids into in the summer. We don't chuck money away and work hard but unfortunately the advice we got was not as good as it could have been and the change in property prices around here has made a huge difference to our situation.
    Mortgage £128,626 going down slowly
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
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    Exactly dora, i remember at the time of buying our house in Jan 2007 places were selling before the for sale sign went up, we were going to viewings and offers were being made to the estate agent at the door and people bickering over who offered first.... yet on here everyone seems to say (in hindsight) they knew there was going to be a crash and 2007 was the worst time to buy... well they must have been the only ones!
  • Dorastar
    Dorastar Posts: 2,173 Forumite
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    At least we have the benefit of realising our situations and being able to start addressing them financially - there will be a lot of people I suspect who are going to find themselves up the proverbial creek without a paddle and a lot for whom this was helped by bad advice. We are lucky that we are in the hosue we intend to grow old in as well so things will work out eventually but there will be others who will be 'stuck' in every sense of the word.
    Mortgage £128,626 going down slowly
  • Endofcheapeasycredit
    Endofcheapeasycredit Posts: 7 Forumite
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    In the Metro this morning it was very depressing reading. Saying that credit is only going to get more expensive and harder to get.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Endofcheapeasycredit wrote: »
    In the Metro this morning it was very depressing reading. Saying that credit is only going to get more expensive and harder to get.

    Nothing new. BOE foresaw this in a published report in May 2009.

    Sometimes people live in hope that something magically is going to change the situation.
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