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The Mirror - Property Advice

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Three idiots looking for advice in The Mirror today, poor dears:

Seven years after buying their three-bedroom terraced home for £100,000, Jonty Roberts and his wife have found themselves trapped by negative equity.

"Our original mortgage was for £95,000," says Jonty, 33. "But over the years we have remortgaged three times to help pay for a new bathroom, kitchen, replastering, oak flooring, our wedding and to keep us afloat while my wife trained as a teacher and I was a student nurse. We now have a £180,000 mortgage."

In April last year the couple decided to move from Norwich to London, so the house was put up for sale for £175,000. Weeks later, and with no interest in the property, the couple were advised to reduce the asking price to £150,000.

"There was no way we could sell at that price - it wouldn't have provided us with enough to pay off the mortgage," says Jonty, an outreach worker for a local authority.

So the couple decided to rent it out. They receive £595 a month in rent against a mortgage bill of £900. In October their current mortgage deal ends and payments will rise to over £1,000 per month.

"Having to pay that £300 shortfall each month, on top of our rent in London really hurts," says Jonty. "If we didn't have to find that cash, we could spend it on a new home for ourselves or just a better standard of living."

He adds: "The good news is that prices in Norwich have gone up in the last few months and friends say our house is now worth around £155,000. But sadly it's too late for us and we've missed the boat in London where prices have risen more steeply.

Joanna Dillon bought a two-bedroom house with her boyfriend three years ago - and has been regretting it almost ever since.

The £123,000 property is now worth only £100,000. And she is struggling to make the monthly payments after the couple parted and he moved to Australia.

"I feel very stupid looking back now," says Joanna, 22, a web data analyst. "But I didn't have a clue about mortgages and no one told us what would happen if house prices fell.

"Everyone said buying a house was the safest thing we could do, rather than throwing our money away on rent. Now I am in a right mess."

It looked so different in 2006. Then the couple couldn't believe their luck when they came across a house in Kendal, Cumbria, for £123,000 with front and back garden as well as parking.

A financial adviser arranged a 110 per cent mortgage with the Coventry Building Society for £135,000 which left £12,000 for household essentials with the rest going on a car for her boyfriend and clearing his debts.

"It seems the only way out is to walk away, allow the building society to repossess the house and declare myself bankrupt. I really don't want to go bankrupt, but I can't see any other way out."

The biggest regret James Clark has about the two-bedroom house he bought is the timing.

He bought the semi in Streatham Hill, South London, with a friend in September 2007, just as prices peaked.

"Almost as soon as we moved in, house prices started coming down and our home was losing value," says the 26-year-old telecoms software developer.

He and pal Chris Ostermann took out the cheapest fixed-rate mortgage deal they could find through a broker, buying the house for £250,000, with a 10 per cent, £25,000 deposit.

The deal is due to come to an end next month, but the property is now worth only £220,000.

In addition, Chris proposed to his girlfriend a few weeks ago and is planning to move out in 18 months.

Our Money expert Melanie Wright says.. Staying put until the market recovers is the best option

http://www.mirror.co.uk/news/top-stories/2...15875-21495538/

http://www.mirror.co.uk/news/top-stories/2...15875-21495540/

http://www.mirror.co.uk/news/top-stories/2...15875-21495537/

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Guest AuntJess

The attitude towards money has changed over the decades. At one time folk had to save up to buy something which they could not readily afford, now they are encouraged to go in hock up to the eyeballs.

We need to teach home finance at school as well a homemaking skills - like cookery.

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FTB: Through stupidity/greed I made some REALLY dreadful (stop laughing at the back) financial decisions. Will someone please tell me the easy way out of this?

A: Can't do. There isn't one. You're f@cked and it's going to get a lot worse.

FTB: Oh. Well can I MEW just one more time to keep things ticking over (and possibly get a new RAV4)?

A: No you can't. Now stop wasting time talking to the tabloid press and get a better/second job. What? Can't find one? Oh dear.

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The thing that strikes me the most is that people in this country really are, as thick as mince.

"Our original mortgage was for £95,000," says Jonty, 33. "But over the years we have remortgaged three times to help pay for a new bathroom, kitchen, replastering, oak flooring, our wedding and to keep us afloat while my wife trained as a teacher and I was a student nurse. We now have a £180,000 mortgage."

Both professionals with responsible jobs. It really does call into question their judgement, or lack of...

Edited by superdez

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Our Money expert Melanie Wright says.. Staying put until the market recovers is the best option

Who is Melanie Wright and what qualifications does she have to call herself an expert.

What expert says stay put until prices recover back to September 2007, the peak of the biggest bubble, which should take 30 years at the very earliest. So James Clark 26 of Streatham Hill, South London, you may be able to sell it when you are 56!

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At least they didnt miss the boat, Hope they enjoy the ride on the Titanic

I should be gloating as these are exactly the type of people I hated during the 'boom times'. We/I could see they were going to get badly burnt.

Now I'm still just very angry with them. I don't find it funny at all. Stupid, stupid, stupid imbeciles.

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The thing that strikes me the most is that people in this country really are, as thick as mince.

Both professionals with responsible jobs. It really does call into question their judgement, or lack of...

Yup, as these articles indicate the vast majority of people in the UK are thick as two short planks. The good friends I grew up with still say some of the dumbest things imaginable about the economy, housing prices & Crash Gordon. Even two close mates (mortgaged to the hilt) who work in the automotive industry & who are on the brink of redundancy are still NuLab stalwarts & think Gordon is great :o

On the plus side it has made it very easy to do well in life against this sort of opposition when you're actually able to use your brain to an extent ...

EDIT: Word Mix-up (maybe I'm on the turn?)

Edited by keef

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The thing that strikes me the most is that people in this country really are, as thick as mince.

Yes, exactly.

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The thing that is fair in all this is that if they hadn't remortgaged the first couple would probably still have made a profit on their house value.

Why do people that lose money on property get sympathy compared to people that lose money on shares? They both backed an asset class and lost, but 'Bricks and mortar' is 'special'. Idiots.

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The thing that is fair in all this is that if they hadn't remortgaged the first couple would probably still have made a profit on their house value.

Why do people that lose money on property get sympathy compared to people that lose money on shares? They both backed an asset class and lost, but 'Bricks and mortar' is 'special'. Idiots.

Perhaps it's because people who invest in shares are gambling to make money; while buying a home is mostly about a place to live.

I do sympathize with these 'idiots' but I still need them to fail otherwise the prices don't come down.

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Perhaps it's because people who invest in shares are gambling to make money; while buying a home is mostly about a place to live.

I do sympathize with these 'idiots' but I still need them to fail otherwise the prices don't come down.

Buying a property SHOULD be about somewhere to live, but in recent years it has become a way of making money for many. besides, gambling on shares doesn't price others out of a basic necessity.

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Guest absolutezero
At least they didnt miss the boat, Hope they enjoy the ride on the Titanic

I like that. It deserves a wider audience. Mind if I steal it and put it in my sig?

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There was no way we could sell at that price - it wouldn't have provided us with enough to pay off the mortgage," says Jonty, an outreach worker for a local authority.

a what?

Edited by Si1

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Perhaps it's because people who invest in shares are gambling to make money; while buying a home is mostly about a place to live.

I do sympathize with these 'idiots' but I still need them to fail otherwise the prices don't come down.

this is contradictory, buying a home is a place to live but as soon as you release equity on the place it is clearly no longer a place to live but an inverstment instrument.

Personally i dont think they have lost anymoney through their purchase yet, its still worth more than they paid for it. They have simply taken out an 80k loan, thats their problem let them suffer the consequences rather than the taxpayer

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We need to teach home finance at school as well a homemaking skills - like cookery.

Very true. I have some sympathy for the second case - jointly entered into a big mortgage at the age of 19 :blink: with an apparently low level of financial literacy. She didn't understand what she was doing and her decision will have been guided by older friends and relatives - people she trusted - spouting the usual pwoperdy guff.

The solution? Perhaps a higher minimum age for mortgage applicants or (as I read somewhere else) a legal requirement to demonstrate they understand the mathematics of what they're getting into. Or would that be too much control freakery?

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I should be gloating as these are exactly the type of people I hated during the 'boom times'. We/I could see they were going to get badly burnt.

Now I'm still just very angry with them. I don't find it funny at all. Stupid, stupid, stupid imbeciles.

+1 on that.

What's really galling is that these facking cattle* are the ones that have kept me out of the market while I slaved my ass off trying to earn enough money to catch the market up only to have my money stolen by the government to bail them out.

*them and BTL scumbags of course.

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It might help in future if MEWing was simply not an option available to mortgage holders. It would certainly focus people's minds if they had to obtain the money by means of a simple loan.

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These people are undoubtedly stupid, but there have always been stupid people and there has to be a mechanism in place to protect stupid people from harming themselves. It is policy makers and regulators who should have been performing this role. Unfortunately stupid people were appointed to these roles by a stupid chancellor.

They might have been saved by the financial advisors who advised on their mortgages. However they were stupid too.

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Guest absolutezero
They might have been saved by the financial advisors who advised on their mortgages. However they were stupid too.

Not stupid, but greedy. They want their commission.

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which left £12,000 for household essentials with the rest going on a car for her boyfriend and clearing his debts.

And nows he's split from her and is in Oz.

Yup one born every minute. :lol:

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