GordonBrownSpentMyFuture Posted May 23, 2010 Share Posted May 23, 2010 If you have a hot drink in your hand you might want to put it down... £120k of non-mortgage debt... but seemingly with £70k positive equity... advice? Basically, I am mired in £120k of non-mortgage debt: £50k owing to my dad (secured against HIS house) and £70k owing to credit card and loan companies; in all, I have 11 separate CC/HP liabilities. ... I own four flats, two of which are worth more or less what I paid for them. However, a further two are collectively £70k (approx.) in positive equity (£45k and £25k respectively). So... ... would anyone think there might be a way of exploiting this situation to re-structure/re-finance my debts? There are a couple of things which may limit me, though: (1) My credit record, whilst not disastrous, is poor. (2) Re-mortgaging, I suspect, would be difficult (all flats were bought 'self-cert', so I'd not have the financial wherewithal from my salary to be in line for a remortgage given the prevailing rigorous lending criteria I would need to meet). So... I wondered whether a secured loan *gulp* (in spite of the dangers of a variable rate) or any other financial product might be available to me so that I could start reducing my debt in capital terms instead of simply treading water by making only minimum payments? I was almost feeling sympathetic because the guy does sound desperate and has an affable posting style... but then I found this... from FOUR MONTHS before... Martin (or anyone!), advice DESPERATELY sought: £122,342.83 of (non-mortgage) debt! At the moment, I am only surviving as I "own" 4 flats -- (I say own, but all four mortgages are interest-only mortgages) -- rent them out to tenants and make approximately £1300.00 per month profit. HOWEVER, I keep getting unexpected bills of high three-figures or low four-figures (property maintenance costs, service charges, etc.) cropping up out of the blue which are eating up any profit and leaving me unable to start to reduce my overall debt.It will get even worse, too, if interest rates start rising again, which, if some of the media reports are to be believed, isn't light years away from happening. The responses he received were pretty good too (for MSE) and yet here we are four months later. Some people really do seem adamant on learning their lessons the hard way. This obsession with property really does blind people from the obvious doesn't it? And this guy is just one example of every out-of-their-depth BTLer up and down the country. Something tells me the next 3 years are going to be even more interesting than the last. I'll try not to laugh too hard. Quote Link to comment Share on other sites More sharing options...
newbonic Posted May 23, 2010 Share Posted May 23, 2010 It was for people like this that Schiller wrote "Against stupidity the gods themselves contend in vain." Quote Link to comment Share on other sites More sharing options...
neil324 Posted May 23, 2010 Share Posted May 23, 2010 I feel sorry for his dad most likely grafted and saved all his life, about to take a 50k haircut. Quote Link to comment Share on other sites More sharing options...
GordonBrownSpentMyFuture Posted May 23, 2010 Author Share Posted May 23, 2010 I feel sorry for his dad most likely grafted and saved all his life, about to take a 50k haircut. I don't. His dad raised a greedy imbecile and thought he'd line his pockets with the earnings of the young while also denying them an affordable home of their own. His dad may well lose his house too and find himself in rented but he'll be fine; being a pension slave isn't so bad once you get used to it. Quote Link to comment Share on other sites More sharing options...
Tonkers Posted May 23, 2010 Share Posted May 23, 2010 Has he not thought to sell them all and pay his debts? Quote Link to comment Share on other sites More sharing options...
Pent Up Posted May 23, 2010 Share Posted May 23, 2010 Has he not thought to sell them all and pay his debts? Don't be silly! Just wait it out for house prices to go up! I might go and offer some *hugz* Quote Link to comment Share on other sites More sharing options...
Cogs Posted May 23, 2010 Share Posted May 23, 2010 The solution I used to read about here is that whatever happens its fine, you just raise the rents and pass on the costs. Can't recall what the poster's name was now though... Quote Link to comment Share on other sites More sharing options...
Tonkers Posted May 23, 2010 Share Posted May 23, 2010 The solution I used to read about here is that whatever happens its fine, you just raise the rents and pass on the costs. Can't recall what the poster's name was now though... I love that he says he is turning a profit, but has to spend it all on the cost of maintaining the flats. Er..... Quote Link to comment Share on other sites More sharing options...
lulu Posted May 23, 2010 Share Posted May 23, 2010 If you have a hot drink in your hand you might want to put it down... £120k of non-mortgage debt... but seemingly with £70k positive equity... advice? . This obsession with property really does blind people from the obvious doesn't it? And this guy is just one example of every out-of-their-depth BTLer up and down the country. Something tells me the next 3 years are going to be even more interesting than the last. I'll try not to laugh too hard. On one of these posts he claimed to have a take home pay of £1400 a month. How on earth did anyone lend this pillock enough to take out mortgages on four BTL properties on IO basis?! If I were to go to the bank tomorrow they would proably lend me something in the region of £100K and I earn more than this. It is quite worrying what is going to happen when all this starts to unravel. Quote Link to comment Share on other sites More sharing options...
MongerOfDoom Posted May 23, 2010 Share Posted May 23, 2010 <br />Has he not thought to sell them all and pay his debts?<br /> Maybe he is clever enough to realise that he cannot afford the mortgage repayments while they are being sold, and that the proceeds won't cover his debts even if he really has equity. Seeing as he has already built up a lot of unsecured debt, he is clearly overspending and heading for bankruptcy. His only hope of avoiding it is if the housing market picks up (he might need "only" another 20% or so, LOL). I imagine a decent course of action would be to see if he can raise enough money to repay his father before the (presumably) inevitable comes to pass, but the other creditors may well find that objectionable (I don't know exactly what would happen, but transfers up to something like one year preceding a bankruptcy get looked at and may be reversed). Quote Link to comment Share on other sites More sharing options...
billfunk Posted May 23, 2010 Share Posted May 23, 2010 If only shadenfraude could be exchanged for financial stability... or happiness. In reality it's a s hi t substitute. Quote Link to comment Share on other sites More sharing options...
Sibley's Love Child Posted May 23, 2010 Share Posted May 23, 2010 C'mon guys, don't be hard on him. After all, he's putting a roof over the heads of four British hard-working families. Perhaps if he took on more BTL properties, he might then turn a profit. Remind me, why is it that I can't afford a house for my family? Quote Link to comment Share on other sites More sharing options...
GordonBrownSpentMyFuture Posted May 23, 2010 Author Share Posted May 23, 2010 How on earth did anyone lend this pillock enough to take out mortgages on four BTL properties on IO basis?! If I were to go to the bank tomorrow they would proably lend me something in the region of £100K and I earn more than this. "(2) Re-mortgaging, I suspect, would be difficult (all flats were bought 'self-cert', so I'd not have the financial wherewithal from my salary to be in line for a remortgage given the prevailing rigorous lending criteria I would need to meet)." ... or as Eric would call them... It is quite worrying what is going to happen when all this starts to unravel. Afraid so. Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted May 23, 2010 Share Posted May 23, 2010 I think I speak for us all when I say how proud I am of our previous government and their dedication to ensuring the asset prices of true entrepreneurs like this are kept out of the reach of FTBers, and that everything that is possible is done to ensure his mortgages remain affordable. Quote Link to comment Share on other sites More sharing options...
lulu Posted May 23, 2010 Share Posted May 23, 2010 "(2) Re-mortgaging, I suspect, would be difficult (all flats were bought 'self-cert', so I'd not have the financial wherewithal from my salary to be in line for a remortgage given the prevailing rigorous lending criteria I would need to meet)." ... or as Eric would call them... Afraid so. So a clear case of mortgage fraud and should be investivaged as such? It looks like highly public prosecutions for both the buyer and the lenders who didnt check any of the details thoroughly would not go amis that would get the piggies squeeling and rushing for the exits. I went to a mortgage brokers ~8 years ago with a view to getting a mortgage, they were reluctent to even do me a quote as I only had a single pay slip and was told under no uncertain terms that to be officially aproved they would need 6 months of salary slips. When/why did the lenders stop checking this stuff? Quote Link to comment Share on other sites More sharing options...
Redcellar Posted May 23, 2010 Share Posted May 23, 2010 On one of these posts he claimed to have a take home pay of £1400 a month. How on earth did anyone lend this pillock enough to take out mortgages on four BTL properties on IO basis?! If I were to go to the bank tomorrow they would proably lend me something in the region of £100K and I earn more than this. It is quite worrying what is going to happen when all this starts to unravel. How did he get the money? The clue is in the post, 'self cert' which he says he would now fail given "the rigorous lending criteria". That could be read as a 'liar loan', either that or at the time he magically was affluent and passed the criteria to get 4 houses. Could be that. I know which my money is on Quote Link to comment Share on other sites More sharing options...
Prof Posted May 23, 2010 Share Posted May 23, 2010 Surely we need some government scheme to help this hard-working investor. I think they already have one, it`s called prison, I think. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted May 23, 2010 Share Posted May 23, 2010 Does anyone have the mortgage fraud grass line email address? Quote Link to comment Share on other sites More sharing options...
Stop The Ride Posted May 23, 2010 Share Posted May 23, 2010 Does anyone have the mortgage fraud grass line email address? It's been closed down and the staff redeployed to 150k p.a. jobs in disabled Muslim breastfeeding outreach programmes. Quote Link to comment Share on other sites More sharing options...
Blue Nose Bear Posted May 23, 2010 Share Posted May 23, 2010 Does anyone have the mortgage fraud grass line email address? Wouldn't bother this f**ckers gonna get toasted soon enough Quote Link to comment Share on other sites More sharing options...
miko Posted May 23, 2010 Share Posted May 23, 2010 I feel sorry for his dad most likely grafted and saved all his life, about to take a 50k haircut. Over the last 25 years seeing the boom and bust of the late 80's the slump the boom up to 2007 and now this bust and amazing debt that so many are saddled in i have learnt many things the biggest is parent's ( especially those on limited means ) should never remortgage their assets and loan the money to their kids. The examples of disaster i have heard about in people I know and others i have heard about on places like this are enough to write a book. Quote Link to comment Share on other sites More sharing options...
miko Posted May 23, 2010 Share Posted May 23, 2010 On one of these posts he claimed to have a take home pay of £1400 a month. How on earth did anyone lend this pillock enough to take out mortgages on four BTL properties on IO basis?! If I were to go to the bank tomorrow they would proably lend me something in the region of £100K and I earn more than this. It is quite worrying what is going to happen when all this starts to unravel. As long as you earn't 20k lots of mortgage companies lent you unlimited amounts of money for BTL as long as you put down 15% deposit, which could be remortgaged form another property. Quote Link to comment Share on other sites More sharing options...
miko Posted May 23, 2010 Share Posted May 23, 2010 Has anyone suggested he should go on the game? He's going to have to take it up the ar*se one way or another. lol at 37 i think he might be a bit passed it . Quote Link to comment Share on other sites More sharing options...
non frog Posted May 23, 2010 Share Posted May 23, 2010 .... I'll try not to laugh too hard. I wouldn't laugh at all if I were you. You're paying for people like this. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted May 23, 2010 Share Posted May 23, 2010 I wouldn't laugh at all if I were you. You're paying for people like this. which do you reckon, Northern Crock of Sh!t ofr Halifarce? Quote Link to comment Share on other sites More sharing options...
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