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Btlers Need Help

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Jeremy Gates, who writes for our local rag, has just written an article that seems to support the views of one, John Fitzsimons. On the website lovemoney.com, Fitzsimons has written an article calling for financial help for btl landlords, he would like it to be run on the same lines as the Homeowner Mortgage Support Scheme, which offers help to those struggling with mortgages up to £400,000. I have searched the website and cannot find the article, so I am unable to post a link, which is probably just as well. It would only raise my blood pressure.

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It would only raise my blood pressure.

Mine too. I won't post it all, but take a read of the latest update at `Our Daily Debt.' (Blog of a lawyer working in the debtors' courts of England and Wales.)

This guy was in his mid-30s, and over the past four years he had bought eighteen BTLs, on which he owes £2.5 million. His lenders have been hassling him for a while, and recently got a valuation on the portfolio of about £2 million. That’s negative equity, pretty much in line with the decline in the general residential market.

The defendant has benefited from the Bank of England’s swan dive policy on interest rates, and is repaying a fraction on each property compared to two years ago, on an interest-only basis: total monthly payments of £9,000. But he’s still treading water. Why? A crucial portion of his rents are not being paid.

continues here

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Mine too. I won't post it all, but take a read of the latest update at `Our Daily Debt.' (Blog of a lawyer working in the debtors' courts of England and Wales.)

continues here

Nice find. Have you shown Eric?

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Jeremy Gates, who writes for our local rag, has just written an article that seems to support the views of one, John Fitzsimons. On the website lovemoney.com, Fitzsimons has written an article calling for financial help for btl landlords, he would like it to be run on the same lines as the Homeowner Mortgage Support Scheme, which offers help to those struggling with mortgages up to £400,000. I have searched the website and cannot find the article, so I am unable to post a link, which is probably just as well. It would only raise my blood pressure.

I really liked this bit:

The defendant came to court to reduce an instalment on a £25,000 judgment debt, from £1,000 per month to £150. Lender’s computer said No, but the court said Yes – so long as the lender can apply for a charging order to secure the debt on the defendant’s home.

This was also quite amusing:

Overall, this guy was bright, sarcastic [ :blink: ]– although his understanding of the calculation of yields was a bit …[ <_< ] “after the factâ€. Strangely, he was accompanied by a wise, elderly, beer-gutty friend, who claimed to have been “the fourth IVA in the country, back in the eighties†and was not shy of urging yung glasshoppa on to the path of bankruptcy. I put that point to the defendant as well, although not by way of advice: “have you considered ALL the options?†Turns out he had spoken with an insolvency specialist and was dithering.

So, what of this pile of debt? It was amassed on the trust placed by lenders in a guy who now earns about £2,000 per month from his job. But of course property is a sure thing, and with rental yields … etc etc.

Its stuff like this that makes me wonder...

...normally I'm a pretty live and let live person, but this guy is obviously just a dumb ass cocky gambler with other people's money :angry:

He deserves to lose his home for his greed and recklessness ;)

(Though if he has a family I'm sorry for them on several levels :( )

Also, lets not forget, the bankers who lent him this money should be barred from their industry for life ;)

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Interesting reference to Monopoly in the story.

Monopoly is a game created to demostrate that property speculation destroys society.

You go round the board, earn your wages, and even if you (the public effectively) own the utilities, if you don't buy up as much property as possible then you go bankrupt. Put simply, whoever buys up the most property and crams the most houses onto it ends up with all the money, and everyone else in society ends up bankrupt.

Sadly no-one got the point of it and just took it as a fun game. In fact most people vary from the original rules as going with the original rules it is more accurate to real life but the game seems much less fair.

Edited by TaxAbuserOfTheWeek

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Mine too. I won't post it all, but take a read of the latest update at `Our Daily Debt.' (Blog of a lawyer working in the debtors' courts of England and Wales.)

continues here

This sums it all up quite nicely ..

Our Daily Debt

What passes for prudence and compassion and “give us a break, guv†is going to cause a shitload of trouble for us all, because we chose to prop up the lenders – not just lately, but way back when – through bad regulation and idiotic bailouts. And we did it by electing New Labour and all those politicians who believe in financial fairytales.

We have raced round the Monopoly board – past the real investments, the real returns – and tossed our money in to a Ponzi scheme.

Britain is bankrupt. And here’s the next “solution†…

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