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ingermany

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Posts posted by ingermany

  1. 6 hours ago, scottbeard said:

    I was about to despair if this was the next PPI....but it isn't.  Good.  If anything this thread has me relieved that there is some common sense amongst mumsnet users, and therefore the general public at large.

    There is a fundamental difference between being sold a PPI policy that you literally can NEVER claim on (which is clear mis-selling) and being sold an IO mortgage instead of a repayment one (which is a swings-and-roundabouts decision).

    Even if it was upheld in some cases that the IO was mis-sold (for example, if paperwork shows false or misleading facts about IO were provided at the time) the actual level of compensation would not necessarily be that much: because surely it isn't your loss on the property that's the claim, but your loss compared to some "alternative universe" where you had a repayment mortgage, which feels like that must be fairly close to all square.  Even if you lost value in the 2007-8 crash (or some future HPC) that's not necessarily meriting compensation, as you'd have been hit by that whatever mortgage product you took out.  And could you really run a legal argument "I'd never have bought this house at all if I'd have been correctly informed about the IO mortgage"?  I doubt it .  And if the house has gone up in value the judge would surely just say "well, yes the IO mortgage was mis-sold but - oh look, you've actually BENEFITTED from it!  Sell it, take your profit, and move on."  You can't sue for things that made you a profit, as you need to prove both negligence AND loss!

     

    Of course the biggest elephant in the room mis-selling scandal is Help To Buy...Lending someone taxpayers money to create a "faux deposit" to take out a mortgage loan otherwise deemed too risky for even the most reckless commercial money lender.   Deliberately circumventing the FCA's own risk management.  And using said loan to finance property at an outrageously inflated price above market valuation,  with the proceeds of the fraud going to a few chosen chums of Tory politicians.   And just calling it  "Help to Buy" is the ultimate smoking gun that proves mis-selling. 

  2. 10 hours ago, reginekierkegaard said:

    Something is happening in the global housing market. Australian market had crashed. Hong Kong is seeing some sharp 'correction' and even US house market is softening. All the while, the S&P500, FTSE 100 are in correction territories. Emerging Market and Asia pacific stocks are now like a war zone with blood everywhere. There is a flight of capital to the US dollar. 10 year T bill now yield well above 3%. GBP is now reaching another low. With the uncertainty over the stability of UK currency, investors would think twice before investing. Most investors are more concern about protecting their capital now than buying some overvalued residential properties that produce no where enough rental yield to cover their cost of leveraging. 

    This is not a seller market. 

    Absolutely spot on.  The realistic price achievable for a £1m property is dropping faster than the Debenhams share price. No coincidence that raffles and lotteries have replaced sales. 

    On the positive side, I hope that the inevitable collapse in house prices restores the incentive to earn through work and to invest in productivity and innovation. 3 decades of "smart money" going into a real estate ponzi....enough already. 

  3. 5 hours ago, hotblack42 said:

    Yes that's true,  but almost all of the financial advantage of renting was realised in 90-93 so you may as well have re-entered the property market in 93 when the the balance was swinging at an accelerating rate back towards ownership, been able to decorate, modify, repair, etc. and be already invested at the start of the bull run double bubble through to 2016/17.
    2023 looking a good year to buy.  Sadly we will be buying in 2019 or early 2020 due to my being the only rationale person in the family wrt property, but at least the froth is blowing off already..

    In 10 years of ownership my 60k mortgage cost 300 to 600 per month in interest. After 10 years I owed 10k more than the purchase price. In today's context that means paying £1500 to £3000 a month in INTEREST...to live in a small 3BR house...for 10 years after which you discover your house is worth  £50,000 less than you paid for it and there are points during the 10 years of ownership when you could have bought it for £100,000 less than you actually paid. Will that scenario be repeated for today's FTBs? Maybe not, but never dismis the possibility. 

  4. 11 minutes ago, Sausage said:

    I like looking at the charts in the report... The monthly figure always worse than the 3 month figure. Things deffo getting worse. Bring on the spring ? Maybe this will be my final winter in rented houses!!

    Maybe wait another five years?

    Seriously, house prices are just starting to fall. The 1990 crash took around 8 years to bottom out.  It is better to watch prices fall while renting than it is to watch them fall while paying a 95% LTV mortgage. 

  5. https://www.mortgage-claim.co.uk/landingpage/platform1/?utm_source=Platform1MC&utm_medium=DM

    The Daily Mail website (that I once visited by accident) , keeps sending me a link to this "claims site" .  Says that 2 million IO customers are owed thousands of pounds. I keep hearing about this on no win/no fee legal sites. These lawyers seem confident enough to work for a % of the winnings. Suggests to me that there must be some winnings. I haven't seen many case reports....just one retired woman who IFA persuaded to take out a loan for Bulgarian holiday flats that were never built. She won her case.   Either these lawyers are stupid or there is a move planned by banks to cave in on Interest Only and refund loans with interest.  

    .9 Million people have been led into an interest only mortgage

     Lenders and brokers may have mis-sold mortgages to thousands of cutomers 

     Many of the people affected by this have no idea they could be due compensation

    ✓ Interest only mortgage holders are being refunded thousands of pounds

    ✓ Nearly 2 million people have been left repaying a mortgage that was inappropriate

     
    TitleMrMrsMissMsDr
     
     
     
     
     
     
     
     
    Was your interest only mortgage taken out after 30th October 2004?YesNot SureNo
    Was the mortgage buy to let?YesNo
    Was the value of the mortgage over £25,000?YesNo
    Was the mortgage taken on your current address? (as you have entered above)Yes - Thanks, no more information needed. Hit START!No - It was a different address
    I understand that by completing my details on the above form my data will be protected and processed
    STAR
     

    Could

    .9 Million people have been led into an interest only mortgage

     Lenders and brokers may have mis-sold mortgages to thousands of cutomers 

     Many of the people affected by this have no idea they could be due compensation

    ✓ Interest only mortgage holders are being refunded thousands of pounds

    ✓ Nearly 2 million people have been left repaying a mortgage that was inappropriate

    you be owed thousands in compensation?

    Taken an interest only mortgage?

     

    *

     

    Find out today if you can claim!

     
     
     
     
  6. 6 minutes ago, mattyboy1973 said:

    Sounds a bit "fraudy" to me.

    Using government funds to provide preferential interest free unsecured loans to property investors who channelled the cash straight into the personal bank accounts of Persimmon's directors definitely sounds fraudy.  Given the basic fundamentals of the scheme, everything associated with it is going to be somewhere bordering on criminal or unethical. There will be massive mis-selling claims. 

  7. 13 hours ago, Si1 said:

    That wouldn't surprise me.

    But extraordinary claims require extraordinary evidence.

    Could you elaborate on your sources please ?    :)

    This https://www.rjharmer.co.uk

    site contains instructions on how to get concurrent HTB and remortgage valuations in order to redeem the government loan through a mortgage by using the difference between the two valuations to achieve an acceptable LTV for the lender. 

  8. I've posted on this before. Surveyors do "special" HTB redemption valuations.These can determine a low value in order to reduce the HTB equity loan repayment. Then another valuation is done for the purpose of remortgaging in order to finance the other 60% of the loan. Not surprisingly, that valuation is much higher than the HTB one.  If the value really had fallen from 500k to 50k the borrower couldn't refinance the remaining 300k. It is a scam, albeit an officially sanctioned one. 

  9. 16 hours ago, Will! said:

    I saw this post on the Labour Policy Forum:

    Right to sell

    Of course, housing associations have been buying private dwellings for letting for many decades.  This was most recently part of government policy in 1992, when Norman Lamont attempted to reverse the house price crash with a £577m grant as part of the Housing Market Package to Housing Associations to make such purchases.  History relates how successful that was, both for improving the stock of social housing and reversing the HPC.

    I wonder for how much this chap would be willing to sell his house to a Housing Association 'below the market value' and how he feels about the spare room subsidy?

    Yes. People could sell it at the last Land Registry recorded transaction price adjusted by CPIH.  That would create a potent signal to those who purchase property as a financial instrument. 

    Increasing social housing stock is essential. It won't happen while government is spending billions subsidizing builders who supply overpriced houses to property investors. 

  10. Yep. There's a new type of specialist surveyor, that specialises in down valuing properties bought with HTB, in order to reduce the HTB loan redemption value.  Quite different to the specialist surveyors who exaggerate the value of same property to secure remortgage with a lender.  Corruption everywhere you look. 

  11. 9 hours ago, Bruce Banner said:

    The best way is to avoid a chain altogether, make your offer conditional on a prompt and independent exchange of contracts, but be prepared to play hardball when the EA tries to construct a chain regardless. 

    Agree totally. Either someone can afford a something or they can't.  If they need to wait for granny to have a fatal accident, or for some idiot to buy their ludicrously overpriced hovel before they can afford the house of their dreams, they really can't afford it. What worries me is that somewhere in Westminster a committee of government ministers will be discussing how public finances can be diverted to solve this problem. 

  12. On 06/03/2012 at 18:31, mrpleasant said:

    This is much debated and I personally would love to know what's behind it. I also see SSTC on many, many properties on RM, a lot of them for months on end. I can only assume the EAs encourage vendors to take an offer - any offer - when the potential buyer is dependent on finding a buyer for their own property. The EA can offer assurances that the property will still be marketed in the hope that a better offer will come along, but meanwhile the postcode, town or whatever, benefits from the impression of a buoyant market, hopefully frightening other potential buyers into jumping in 'before it's too late'. It has the added benefit of validating current asking prices as it doesn't actually reveal what the acceptable offer was. I remember ringing an EA about a property a couple of years ago and being told in one breath that it had gone under offer and a split second later being asked when I'd like to view it. When I declined you could hear the disappointment in the EA's voice. Hoping for a juicy bidding war, no doubt.

    If it's a sales ploy it is a very dumb one because RM property seach excludes SSTC by default. It's like a greengrocer keeping all his bananas in the shed at the back of the shop unless a customer specifically asks for one. I think it is down to a combination of factors.... slow legal process, surveyors, banking,  searches etc.  People like me agree to buy and then drag their feet while they view other properties.   Agents are also slow,  unless it's getting the initial change from available to SSTC or under offer. Most think the job ends there.   

    In my experience, agents do all they reasonably can to prevent offers coming in after the sale is agreed. I have enquired about houses sstc in the past and been told "sorry it's sold"....end of conversation.  Edit...maybe it's just me though. I'm probably on some blacklist of feet dragging potential buyers. 

  13. https://www.theguardian.com/money/2018/may/29/im-buying-a-second-home-how-much-stamp-duty-will-i-pay

    Unbelieveable that this buyer didn't realise he owed an additional £12,000 stamp duty until he opened the completion statement from the solicitor. The article details his byzantine but futile efforts at avoidance of the tax..... a  "cunning plan"  worthy of Baldrick, that completely failed. 

    Anyway, he bought a second house, whilst reclassifying his existing house as BTL and then designating the new house as his main res.  So he's simply changing his main res?   No....As the Guardian points out....you still own 2 houses mate, so suck up the 3% surcharge. You need to sell that BTL that was your main res. But it's too late now. Well I guess he has 3 years to sell and reclaim the 12k he just paid in tax......

    As Del would say....what a plonker. 

  14. 15 hours ago, mrtickle said:

    Indeed. We, here, always suspected this, but those numbers are damning.

    One would hope that the government would WAKE UP after seeing this, and go a very serious re-examination of other benefits in the light of these alarming statistics. A lot more could be means-tested.

     

    Also, the article is disingenuous - all claimants have had at least two letters sent to them starting in January, ages ago. The article is screaming about people being successfully or unsuccessfully telephoned, but they've ALL already been contacted in writing.

     

     

    The article is screaming about people being successfully or unsuccessfully telephoned, but they've ALL already been contacted in writing.

     

    My conclusion from this is that a very large proportion of claimants are not actually living at the address for which they are claiming mortgage interest benefit. 

    My second conclusion is that the new loans are still a taxpayer funded gift to people who are already in the wealthiest quartile of society. An interest rate linked to gilt rates is 1.4%. Compare with student loans of 6% and you can immediately see whose side government is on. Wealthy older homeowners win. Young renters pay for it. 

     

     

  15. 13 hours ago, Wayward said:

    Yes...I think he means hand the keys back AND pay any shortfall.

    The only way there will be negative equity is if they have MEWed massively. Like examples of mortgage for 100k in 2001, same house in 2018 mortgage of 280k. Plenty of those stories. In those cases it's appropriate for the bank to demand immediate payment using the obvious untaxed cash windfall, with immediate eviction on failure to pay.  No forbearance for the greedy or dishonest. 

    Others, with small loans who can meet interest payments....guidance seems to be extend IO terms til death or senility, then repossess the house. 

  16. 7 hours ago, Funn3r said:

    How is that even legal! How does the guy do a low valuation then next day wearing a different hat it's a higher valuation. "It's gone up a lot since yesterday" 

    https://www.rjharmer.co.uk/rics-help-buy-surveyor/

     

    Explains that HTB valuation is done to a different set of criteria than remortgage valuations or estate agent valuations. The flat in London valued at 50k recently, to effectively write off a massive HTB loan is the extreme, but it is quite possible to get a low valuation, reduce the HTB loan redemption cost and then finance that with a remortgage based on a much higher valuation for the same property.  Of course the whole concept of the scheme is corrupt. CEO of Persimmon pocketed 110 million annual bonus paid for by taxpayers. 

  17. Not exactly bad news for borrowers. I tried to find a surveyor last month and they were all too busy to take the job because they were doing so many HTB valuations. They openly boast that the HTB valuation is completely different from a mortgage valuation.  They explain how a low HTB valuation may help get the equity loan reduced drastically, and be accompanied by a separate, much higher valuation which is used to secure a bigger, cheaper mortgage.  Lots of delighted customer feedback on the HTB loan redemption issue. 

     This might explain why, in a stagnant housing market, surveyors are working 24/7 and are too busy to do ordinary structural surveys. 

  18. 8 hours ago, Beary McBearface said:

    It seems to me that there is an important difference between 'I am buying a house' and 'I have bought a house'. This is my absolute last word on the matter, unless I later say more.

    Not sure that distinguishing between 'I tried to buy a house, but failed to buy a house' and 'I bought a house' represents "nit picking to the extreme" but I accept you may not be details-orientated and may tend towards big picture thinking.

    I bought 3 houses last year. Those letters "sstc" look insignificant, until they aren't. It's not been a year of house buying. It's been a year of solicitor and surveyor sponsoring. 

  19. 3 hours ago, Save me from the madness! said:

    It's the whole arbitrary nature of these things that naffs me off. 28 years old? You're fine, you've had it easy. 24 years old? Oh my poor dear, you've had it tough, here's £10K.

    Just bring down house prices, and stop financially raping uni students by reducing the number of places and probably the pension costs and things will be fairer for all without some complicated system of finding out who pays and who gets and all the many exceptions to each category that need to be factored in somehow.

    Absolutely.  I already have the guilt of not moving to Scotland 15 years ago. A decision that will cost my children dear, as they will be paying higher taxes because of it until they are in their late fifties.  Who could have predicted that? 

    And those student loans attract interest way above base rate. Funny that HTB loans are interest free and are frequently written off if a surveyor feels the house wasn't worth what was initially paid. No such mechanism for student loans. 

    Now they want to give free money to another select group....which will directly disadvantage those who don't qualify...as it will bid up house prices and living costs. Forget the free market. We have a system of random rewards and punishments being capriciously meted out based on the whim of those in power. Byantium,  meet ancient Rome. 

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