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Your Home Could Become A Prison!

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The impact from last night's TV seems to be continuing...

http://uk.biz.yahoo.com/050913/35/frxzu.html

"I watched a very gloomy programme on ITV1 last night, entitled Repossession, Repossession, Repossession (a title we suggested in this article). The show featured real-life tales from homeowners who had been turned out of their homes after getting into difficulty with debt or mortgage repayments.

Here are the warnings and lessons that I took away from this show:

House prices will not rise forever!

As the value of homes soared, many families increased their mortgage to release money, chiefly to splurge or pay off other debts. This is known as mortgage equity withdrawal, and it pumped almost £150 billion into our pockets in the three years to the end of 2004. However, as I showed in The Dangers Of Rolling Up Your Debts, nine times out of ten, consolidating your debts doesn't work!

Sadly, one couple on the show remortgaged three times to roll up existing debts and did so once more for a final time - even though they knew that they couldn't afford the repayments. All they gained from this churning process was a larger mortgage and yet more unsecured debts. Indeed, when losing their home became a certainty, they and their four children were evicted. Even worse, mum's elderly parents, who had lived in an adjacent granny flat, had to beg for a bed at a homeless hostel. Oh no!

Negative equity has returned!

Even some wealthier homeowners are finding things tough. Of the five thousand or so new flats built in London's exclusive Docklands area in recent years, only around a third are owner-occupied. Another third have been sold to property investors, but most of these flats lie empty, while the remaining third remain unsold. This glut of unsold property has lowered property prices in the area, leaving many people with mortgages greater than the value of their homes, known as negative equity.

...."

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Indeed, according to the Council of Mortgage Lenders, over 100,000 borrowers are three or more months in arrears with their mortgage repayments. Although this amounts to only 1 in 115 mortgage borrowers, the number of borrowers in arrears has been rising for eighteen months and will go a lot higher.

That is a bit high is'nt it!

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Reduced income (e.g. loss of overtime or bonuses): 26%

Financial mismanagement: 25%

Redundancy and unemployment: 14%

Accident, sickness or injury: 12%

Relationship breakdown: 7%

Over-indebtedness: 5%

Others: 11%

So people are basing their mortgage payments on the fact they are working overtime? Now that the economy is less vibrant, more people will find their overtime and bonuses reduced.

Oh dear!

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So people are basing their mortgage payments on the fact they are working overtime? Now that the economy is less vibrant, more people will find their overtime and bonuses reduced.

Oh dear!

I'm thinking about stopping doing overtime altogether,but, what the hell, i'm renting, so won't be getting my fingers burned anyway.Nice position to be in actually.

Has anyone noticed how brainwashed we all are about this desperate need to get on the housing ladder? It's taken me ages to get it out of my system & not worry about it anymore. Bit like going "Cold Turkey"!

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So people are basing their mortgage payments on the fact they are working overtime? Now that the economy is less vibrant, more people will find their overtime and bonuses reduced.

Oh dear!

Not only overtime, just bonuses in many cases. People in the City have a nasty predaliction for this sort of thing, you'd hope they'd know better.

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  • 301 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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