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I really fee for our best friends. They brought at the absolute peak (got a good deal on the place all things considered but it was a total dump) and got a 5y fix.
They are coming off their deal and after being laughed at by their current provider they have asked me to pour over their financial position. This can’t be easy, and for the husband to save face they have asked me to do this via his wife and my wife so in a few days time they are going to open book their life with me.
The wife is a teacher and the husband is a skilled craftsman. They say they never have money (but go on holiday a lot) and have large unsecured debts as well (£20k +).
I do worry for them though, they have no equity in the house (its still being done up 5y later) and I know they took out a 100% mortgage but I’m not sure if they took over 100% to try and pay down other debt (we shall see), its another example of the pinch for people as the come off 5y fixes just as the SVR is going up.
I’m going to send them onto a broker but they have asked me attend this with them as well.
A nosy part of me is fascinated by what I will see as their gross income should be OK c£60k per year, I really hope I can help them out
Anecdotal - Friends Have Asked Me To Help With Mortgage After Coming Off Their Fix the curse of the peak 5y fix coming to an end
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#2
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Posted 03 March 2012 - 05:28 PM
Unless they have a hefty deposit saved it will be the lenders SVR for them. Which may well be better than their fix was.
Remember that buying a house is a highly leveraged investment and can result in losses that exceed your initial deposit. Buying a house may not be suitable for everyone, so please ensure that you fully understand the risks involved.
"The time to buy is when blood is running in the streets" Baron Nathan Rothschild
"The time to buy is when blood is running in the streets" Baron Nathan Rothschild
#3
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Posted 03 March 2012 - 05:35 PM
I have helped two friends financially, realising that we may not see the money again and it may have made a difference to them.
Both had asked for help before and when given had fairly quickly paid it back.
It is interesting that neither of them have paid us back recently.
Flame me if you wish but I am not complaining as the money was inconseqential in terms of house fund and as I say I am prepared to not see it again. I post as a anecdote reinforcing the worsening times for many.
Both had asked for help before and when given had fairly quickly paid it back.
It is interesting that neither of them have paid us back recently.
Flame me if you wish but I am not complaining as the money was inconseqential in terms of house fund and as I say I am prepared to not see it again. I post as a anecdote reinforcing the worsening times for many.
Closer than you think!
This species has amused itself to debt.
This species has amused itself to debt.
#4
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Posted 03 March 2012 - 05:51 PM
man o, on 03 March 2012 - 05:35 PM, said:
I have helped two friends financially, realising that we may not see the money again and it may have made a difference to them.
Both had asked for help before and when given had fairly quickly paid it back.
It is interesting that neither of them have paid us back recently.
Flame me if you wish but I am not complaining as the money was inconseqential in terms of house fund and as I say I am prepared to not see it again. I post as a anecdote reinforcing the worsening times for many.
Both had asked for help before and when given had fairly quickly paid it back.
It is interesting that neither of them have paid us back recently.
Flame me if you wish but I am not complaining as the money was inconseqential in terms of house fund and as I say I am prepared to not see it again. I post as a anecdote reinforcing the worsening times for many.
Nice of you to do.
I suspect you are a minority. The 'fix' you gave them though may only have bought them some more time. Sadly, when people are borrowing money it usually means they are about to fail big time. Borrowing a tenner because you're not near the ATM and want to buy some drinks is one thing. Borrowing to keep your life afloat is completely different.
Anyone got any recent figures of those going bankrupt and seeking voluntary agreements? Interested to see how it's change in the last twelve months. I know of someone who works with those in debt, and his business is booming.
Allegedly.
#5
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Posted 03 March 2012 - 06:07 PM
Pent Up, on 03 March 2012 - 05:28 PM, said:
Unless they have a hefty deposit saved it will be the lenders SVR for them. Which may well be better than their fix was.
that's what i figured
even a stopped clock gives the right time twice a day
When they come a wull staun ma groon, Staun ma groon al nae be afraid
Thoughts awe hame tak awa ma fear, Sweat an bluid hide ma veil awe tears
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When they come a wull staun ma groon, Staun ma groon al nae be afraid
Thoughts awe hame tak awa ma fear, Sweat an bluid hide ma veil awe tears
my blog
#6
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Posted 03 March 2012 - 06:07 PM
Redcellar, on 03 March 2012 - 05:51 PM, said:
Nice of you to do.
I suspect you are a minority. The 'fix' you gave them though may only have bought them some more time. Sadly, when people are borrowing money it usually means they are about to fail big time. Borrowing a tenner because you're not near the ATM and want to buy some drinks is one thing. Borrowing to keep your life afloat is completely different.
Anyone got any recent figures of those going bankrupt and seeking voluntary agreements? Interested to see how it's change in the last twelve months. I know of someone who works with those in debt, and his business is booming.
I suspect you are a minority. The 'fix' you gave them though may only have bought them some more time. Sadly, when people are borrowing money it usually means they are about to fail big time. Borrowing a tenner because you're not near the ATM and want to buy some drinks is one thing. Borrowing to keep your life afloat is completely different.
Anyone got any recent figures of those going bankrupt and seeking voluntary agreements? Interested to see how it's change in the last twelve months. I know of someone who works with those in debt, and his business is booming.
not so nice to start a thread though
I hope when they do open up to you ...you do act a friend and keep it totally in confidence
#7
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Posted 03 March 2012 - 06:12 PM
How much did they pay for their house?
#8
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Posted 03 March 2012 - 06:15 PM
Tankus, on 03 March 2012 - 06:07 PM, said:
not so nice to start a thread though
I hope when they do open up to you ...you do act a friend and keep it totally in confidence
I hope when they do open up to you ...you do act a friend and keep it totally in confidence
Telling no one but anonymous people on Internet forums.
Remember that buying a house is a highly leveraged investment and can result in losses that exceed your initial deposit. Buying a house may not be suitable for everyone, so please ensure that you fully understand the risks involved.
"The time to buy is when blood is running in the streets" Baron Nathan Rothschild
"The time to buy is when blood is running in the streets" Baron Nathan Rothschild
#9
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Posted 03 March 2012 - 06:55 PM
FIGGY, on 03 March 2012 - 05:02 PM, said:
I really fee for our best friends. They brought at the absolute peak (got a good deal on the place all things considered but it was a total dump) and got a 5y fix.
They are coming off their deal and after being laughed at by their current provider they have asked me to pour over their financial position. This can't be easy, and for the husband to save face they have asked me to do this via his wife and my wife so in a few days time they are going to open book their life with me.
The wife is a teacher and the husband is a skilled craftsman. They say they never have money (but go on holiday a lot) and have large unsecured debts as well (£20k +).
I do worry for them though, they have no equity in the house (its still being done up 5y later) and I know they took out a 100% mortgage but I'm not sure if they took over 100% to try and pay down other debt (we shall see), its another example of the pinch for people as the come off 5y fixes just as the SVR is going up.
I'm going to send them onto a broker but they have asked me attend this with them as well.
A nosy part of me is fascinated by what I will see as their gross income should be OK c£60k per year, I really hope I can help them out
They are coming off their deal and after being laughed at by their current provider they have asked me to pour over their financial position. This can't be easy, and for the husband to save face they have asked me to do this via his wife and my wife so in a few days time they are going to open book their life with me.
The wife is a teacher and the husband is a skilled craftsman. They say they never have money (but go on holiday a lot) and have large unsecured debts as well (£20k +).
I do worry for them though, they have no equity in the house (its still being done up 5y later) and I know they took out a 100% mortgage but I'm not sure if they took over 100% to try and pay down other debt (we shall see), its another example of the pinch for people as the come off 5y fixes just as the SVR is going up.
I'm going to send them onto a broker but they have asked me attend this with them as well.
A nosy part of me is fascinated by what I will see as their gross income should be OK c£60k per year, I really hope I can help them out
Asking for 'help' or 'information' is often a precursor to asking you for money. Be prepared for your answer and make sure the wife is on the same line as you...because they'll target the weak link.
it is, until it isn't tm
#10
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Posted 03 March 2012 - 07:15 PM
hotairmail, on 03 March 2012 - 06:55 PM, said:
Asking for 'help' or 'information' is often a precursor to asking you for money. Be prepared for your answer and make sure the wife is on the same line as you...because they'll target the weak link.
Good point but it will never ever happen, they are good people and if they had been on the poverty line I would hep them out (I have done this for someone int he past) but they are living a lifestlye on borrowed money (big white wedding paid for by a loan).
No one knows who they are on here and I've kep it even more that way by not referencing the job he has, only talking about him being skilled.
I expect it will be SVR, which is what I said to them. They may be super lucky and have a nice low tracker rate but we will have to see.
I think they like the security of a fix so it will be hard for them to move to something that can change at any time, the current hike in SVR isn't going to help.
#11
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Posted 03 March 2012 - 07:23 PM
FIGGY, on 03 March 2012 - 05:02 PM, said:
I really fee for our best friends. They brought at the absolute peak (got a good deal on the place all things considered but it was a total dump) and got a 5y fix.
They are coming off their deal and after being laughed at by their current provider they have asked me to pour over their financial position. This can’t be easy, and for the husband to save face they have asked me to do this via his wife and my wife so in a few days time they are going to open book their life with me.
The wife is a teacher and the husband is a skilled craftsman. They say they never have money (but go on holiday a lot) and have large unsecured debts as well (£20k +).
I do worry for them though, they have no equity in the house (its still being done up 5y later) and I know they took out a 100% mortgage but I’m not sure if they took over 100% to try and pay down other debt (we shall see), its another example of the pinch for people as the come off 5y fixes just as the SVR is going up.
I’m going to send them onto a broker but they have asked me attend this with them as well.
A nosy part of me is fascinated by what I will see as their gross income should be OK c£60k per year, I really hope I can help them out
They are coming off their deal and after being laughed at by their current provider they have asked me to pour over their financial position. This can’t be easy, and for the husband to save face they have asked me to do this via his wife and my wife so in a few days time they are going to open book their life with me.
The wife is a teacher and the husband is a skilled craftsman. They say they never have money (but go on holiday a lot) and have large unsecured debts as well (£20k +).
I do worry for them though, they have no equity in the house (its still being done up 5y later) and I know they took out a 100% mortgage but I’m not sure if they took over 100% to try and pay down other debt (we shall see), its another example of the pinch for people as the come off 5y fixes just as the SVR is going up.
I’m going to send them onto a broker but they have asked me attend this with them as well.
A nosy part of me is fascinated by what I will see as their gross income should be OK c£60k per year, I really hope I can help them out
OMFG don't whatever you do lend them a penny.
I lent £8K to a "friend" 2 years ago, and never saw a penny back. I had to threaten her with legal action and then it was her husband who had to bail her out by paying me off.
Back to your situation these clowns were in financial trouble yet continued to take holidays.
They're irresponsible, are going down, and you must steer clear of giving them any money while they do so.
Libertarian capitalism is the best approach to wealth for any society.
Freedom from government coercion. Property rights and private ownership.
Freedom from government coercion. Property rights and private ownership.
#12
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Posted 03 March 2012 - 07:25 PM
hotairmail, on 03 March 2012 - 06:55 PM, said:
Asking for 'help' or 'information' is often a precursor to asking you for money. Be prepared for your answer and make sure the wife is on the same line as you...because they'll target the weak link.
That is very cynical of you.
(It's exactly what I thought when I read the OP)
If you say "democorruptcy" quickly, it sounds a bit like "democracy". In a "democracy" people vote for politicians who represent their interests. In the UK's "democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.
The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR and interest rates swaps are now being paid by savers so that bankers can keep pocketing bonuses.
"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%
If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm
Did you recognise the two robbers in my avatar? Clue: One got a knighthood and inflation linked pension, the other a 150 year prison sentence.
The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR and interest rates swaps are now being paid by savers so that bankers can keep pocketing bonuses.
"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%
If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm
Did you recognise the two robbers in my avatar? Clue: One got a knighthood and inflation linked pension, the other a 150 year prison sentence.
#13
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Posted 03 March 2012 - 07:30 PM
Thread Killer, on 03 March 2012 - 07:23 PM, said:
OMFG don't whatever you do lend them a penny.
I lent £8K to a "friend" 2 years ago, and never saw a penny back. I had to threaten her with legal action and then it was her husband who had to bail her out by paying me off.
Back to your situation these clowns were in financial trouble yet continued to take holidays.
They're irresponsible, are going down, and you must steer clear of giving them any money while they do so.
I lent £8K to a "friend" 2 years ago, and never saw a penny back. I had to threaten her with legal action and then it was her husband who had to bail her out by paying me off.
Back to your situation these clowns were in financial trouble yet continued to take holidays.
They're irresponsible, are going down, and you must steer clear of giving them any money while they do so.
And the strange thing is when you lend money YOU become the bad guy when you want the money back.
Osborne says; “Printing money is the last resort of desperate governments when all other policies have failed.”
George Osborne December 2008; “Savers and pensioners are the forgotten victims … They are innocent bystanders and it’s simply not good enough for the Government to walk on by."
In his 1997 Budget speech, Gordon Brown said, "I will not allow house prices to get out of control and put at risk the sustainability of the future". He went on to say that he did not want a return to "instability, speculation and negative equity" of the 1980's and 1990's.
George Osborne December 2008; “Savers and pensioners are the forgotten victims … They are innocent bystanders and it’s simply not good enough for the Government to walk on by."
In his 1997 Budget speech, Gordon Brown said, "I will not allow house prices to get out of control and put at risk the sustainability of the future". He went on to say that he did not want a return to "instability, speculation and negative equity" of the 1980's and 1990's.
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Posted 03 March 2012 - 07:32 PM
FIGGY, on 03 March 2012 - 07:15 PM, said:
Good point but it will never ever happen, they are good people and if they had been on the poverty line I would hep them out (I have done this for someone int he past) but they are living a lifestlye on borrowed money (big white wedding paid for by a loan).
No one knows who they are on here and I've kep it even more that way by not referencing the job he has, only talking about him being skilled.
I expect it will be SVR, which is what I said to them. They may be super lucky and have a nice low tracker rate but we will have to see.
I think they like the security of a fix so it will be hard for them to move to something that can change at any time, the current hike in SVR isn't going to help.
No one knows who they are on here and I've kep it even more that way by not referencing the job he has, only talking about him being skilled.
I expect it will be SVR, which is what I said to them. They may be super lucky and have a nice low tracker rate but we will have to see.
I think they like the security of a fix so it will be hard for them to move to something that can change at any time, the current hike in SVR isn't going to help.
I'd be interested to know if they can remortgage with that much debt and no equity.
Remember that buying a house is a highly leveraged investment and can result in losses that exceed your initial deposit. Buying a house may not be suitable for everyone, so please ensure that you fully understand the risks involved.
"The time to buy is when blood is running in the streets" Baron Nathan Rothschild
"The time to buy is when blood is running in the streets" Baron Nathan Rothschild
#15
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Posted 03 March 2012 - 07:37 PM
Sounds like their creditors have the problem, not your friends. 