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When Love Meets Interest Only Mortgages


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I think it's time to bring a little love and a little ethics to HPC! Here's a story for you, hypothetical of course.

Boy works and saves for a house deposit and at the ripe old age of 33, thinks there might be a time in the coming year when housing prices will reach something affordable. Boy looking forward to getting out of rented flats.

Enjoying it so far?

Boy meets Girl. Boy falls for Girl and Girl falls for Boy.

Now it gets interesting

Girl has two houses. One she lives in, one is a BTL. Girl appears to have followed the sheep into mortgage insanity. Both mortgages are interest only. Both have been re mortgaged and in total, Girl has £250K of interest only mortgage. Although she earns approx £30K, Girl took on 10x her salary at the time of taking the interest only mortgage debt though. Girl can pay off the interest but has no means to save for the actual repayment of the debt in 25 years.

The mortgages were dished out by high street banks about 3 years ago. Guestimate value of the properties now is <£200K

Boy is incredulous.

Boy is also worried for all sorts of reasons and wonders if HPC has every discussed this or can offer advise about:

1- Is there a mechanism to complain to the banks that dished this sort of debt out to such an unsuitable candidate? Is there any real likelihood of Girl escaping a life of mortgage slavery she has signed up to?

2- Is Girl technically bankrupt, and long term better off declaring so now?

How will this affect Boy.

Any comments?

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How will this affect Boy.

Any comments?

Is she good looking? A decent shag? If so, stay with her and always, always wear a condom. And never, ever marry her. And never, ever lend her money; for anything.

If she's a bit of a dog, leave now. And don't forget to wish her all the best with her "portfolio."

Cheers,

Nomadd

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This takes us back to my advice in a similar thread a while back.

On a first date, always demand that the woman brings the last couple of years of her bank statements. Discussing them over a glass of wine to determine her solvency can an excellent ice-breaker.

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1- Is there a mechanism to complain to the banks that dished this sort of debt out to such an unsuitable candidate? Is there any real likelihood of Girl escaping a life of mortgage slavery she has signed up to?

:lol: My sides! stop, please, you're killing me!

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This takes us back to my advice in a similar thread a while back.

On a first date, always demand that the woman brings the last couple of years of her bank statements. Discussing them over a glass of wine to determine her solvency can an excellent ice-breaker.

...And yet women still always complain that men never want to listen to what they have to say. :)

Nomadd

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Here's another little story (true and recent):

Girl (cohabiting with boy) says one evening to boy, 'I seem to have rather a lot of money in my current account - could you have a look?'

Boy looks, and nearly has a fit. Girl has over £20K sitting there - and it's not a bank error. It's built up 18 months or so, and it's never occurred to her to check or shift it into a savings a/c.

Not thick, one of those very clever types who's away with the fairies half the time.

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1- Is there a mechanism to complain to the banks that dished this sort of debt out to such an unsuitable candidate? Is there any real likelihood of Girl escaping a life of mortgage slavery she has signed up to?

Misselling! Misselling!

(but she's already being bailed out, by suicidally-low[1] interest rates)

2- Is Girl technically bankrupt, and long term better off declaring so now?

Nope. Well, not based on what you've said alone, though there might be more.

Boy needs to be sure he doesn't get entangled in her finances. If he moves in with her, pay market rent and keep it formal. Steer well clear of sprogs or nuptials, or any other commitments in which the law might take an interest!

If she's worth it on those terms, then enjoy! The fact you're asking here presumably means you haven't got the bug so badly as to want to get dragged down yourself ...

[1] for the economy

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Here's another little story (true and recent):

Girl (cohabiting with boy) says one evening to boy, 'I seem to have rather a lot of money in my current account - could you have a look?'

Boy looks, and nearly has a fit. Girl has over £20K sitting there - and it's not a bank error. It's built up 18 months or so, and it's never occurred to her to check or shift it into a savings a/c.

Not thick, one of those very clever types who's away with the fairies half the time.

TBH keeping it in a current account isn't the worst "investment" she could have made over the last 18 months!

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This takes us back to my advice in a similar thread a while back.

On a first date, always demand that the woman brings the last couple of years of her bank statements. Discussing them over a glass of wine to determine her solvency can an excellent ice-breaker.

It is a beautiful turnaround of events for sure, I remember once having a "discussion" with a mong BTL bull who was asking whether it was embarassing to admit being a renter to a new date

Now it's obviously critical to ascertain on a first date whether she has any BTLs or a crippling mortgage

RUN AWAY!

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I think it's time to bring a little love and a little ethics to HPC! Here's a story for you, hypothetical of course.

Boy works and saves for a house deposit and at the ripe old age of 33, thinks there might be a time in the coming year when housing prices will reach something affordable. Boy looking forward to getting out of rented flats.

Enjoying it so far?

Boy meets Girl. Boy falls for Girl and Girl falls for Boy.

Now it gets interesting

Girl has two houses. One she lives in, one is a BTL. Girl appears to have followed the sheep into mortgage insanity. Both mortgages are interest only. Both have been re mortgaged and in total, Girl has £250K of interest only mortgage. Although she earns approx £30K, Girl took on 10x her salary at the time of taking the interest only mortgage debt though. Girl can pay off the interest but has no means to save for the actual repayment of the debt in 25 years.

The mortgages were dished out by high street banks about 3 years ago. Guestimate value of the properties now is <£200K

Boy is incredulous.

Boy is also worried for all sorts of reasons and wonders if HPC has every discussed this or can offer advise about:

1- Is there a mechanism to complain to the banks that dished this sort of debt out to such an unsuitable candidate? Is there any real likelihood of Girl escaping a life of mortgage slavery she has signed up to?

2- Is Girl technically bankrupt, and long term better off declaring so now?

How will this affect Boy.

Any comments?

Boy and Grirl are completely intellectually incompatible, but Boy's brain is still being drowned in prehistoric love chemicals which evolved in the days when caves were free. One day, Boy will wake up and realise that Girl is completely f***ing daft, and now he too has lost his deposit swallowed into her cavernous debts. Boy should run now and either find less daft girl, or take the cheaper option and buy his milk from the shop instead of keeping a cow at home.

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Have you read "all my friends are middle class twats" over in anecdotals?

Sounds to me you're just looking for a girlfriend like he's got - one which you can roll your eyes at regarding the plight of others.

But don't worry - all hope is not yet lost! My bf and I don't have a bean between us but yet we STILL look down on other people for other reasons. Just find out what it is which makes you and her superior to the rest of the population.

Seriously - there is more to life than money - love is very valuable.

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Have you read "all my friends are middle class twats" over in anecdotals?

Sounds to me you're just looking for a girlfriend like he's got - one which you can roll your eyes at regarding the plight of others.

But don't worry - all hope is not yet lost! My bf and I don't have a bean between us but yet we STILL look down on other people for other reasons. Just find out what it is which makes you and her superior to the rest of the population.

Seriously - there is more to life than money - love is very valuable.

What are your "other reasons" to look down on people???

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Have you read "all my friends are middle class twats" over in anecdotals?

Sounds to me you're just looking for a girlfriend like he's got - one which you can roll your eyes at regarding the plight of others.

But don't worry - all hope is not yet lost! My bf and I don't have a bean between us but yet we STILL look down on other people for other reasons. Just find out what it is which makes you and her superior to the rest of the population.

Seriously - there is more to life than money - love is very valuable.

err - sounds like she's ruined, but apart from that spot on

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I think it's time to bring a little love and a little ethics to HPC! Here's a story for you, hypothetical of course.

Boy works and saves for a house deposit and at the ripe old age of 33, thinks there might be a time in the coming year when housing prices will reach something affordable. Boy looking forward to getting out of rented flats.

Enjoying it so far?

Boy meets Girl. Boy falls for Girl and Girl falls for Boy.

Now it gets interesting

Girl has two houses. One she lives in, one is a BTL. Girl appears to have followed the sheep into mortgage insanity. Both mortgages are interest only. Both have been re mortgaged and in total, Girl has £250K of interest only mortgage. Although she earns approx £30K, Girl took on 10x her salary at the time of taking the interest only mortgage debt though. Girl can pay off the interest but has no means to save for the actual repayment of the debt in 25 years.

The mortgages were dished out by high street banks about 3 years ago. Guestimate value of the properties now is <£200K

Boy is incredulous.

Boy is also worried for all sorts of reasons and wonders if HPC has every discussed this or can offer advise about:

1- Is there a mechanism to complain to the banks that dished this sort of debt out to such an unsuitable candidate? Is there any real likelihood of Girl escaping a life of mortgage slavery she has signed up to?

2- Is Girl technically bankrupt, and long term better off declaring so now?

How will this affect Boy.

Any comments?

Boy needs his head testing. Would boy really want to mix his DNA with a sub species?

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Have you read "all my friends are middle class twats" over in anecdotals?

Sounds to me you're just looking for a girlfriend like he's got - one which you can roll your eyes at regarding the plight of others.

But don't worry - all hope is not yet lost! My bf and I don't have a bean between us but yet we STILL look down on other people for other reasons. Just find out what it is which makes you and her superior to the rest of the population.

Seriously - there is more to life than money - love is very valuable.

Are you freakily tall?

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Boy should run as fast as possible.

If boy doesn't run under no circumstances tell Girl he has money in the bank.

If he lives with her they can share the cost of utility bills which will help her as she will have some money to reduce debt and he will be able to save more for deposit. He will need a deposit as she is destined for the looney bin once interest rates start to rise.

Another consideration would be the damage she could do to his credit rating if he is at the same address as her.

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What are your "other reasons" to look down on people???

Varied and wonderful. Bloke to the left has the orangest tan I've ever seen (Andre, P excepted). Bloke to the right has terrible taste in music and his mum accidentally shows her pants when she's cleaning.

You can look down on almost anybody if you put the effort in! I can't imagine ever limiting myself to simply their mortgage products! :lol:

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  • 420 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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