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people should need to take an IQ test before being granted a mortgage, if their IQ is lower than 75, as in this case, they should bot be allowed to apply.

£8,400 salary and £117,500 self cert mortgage.

But is ok because the house has increased in value by 25% in the last 5 years!

Hi, I will try and keep this straightforward: February 2011 I come out of a fixed rate mortgage deal with Bristol and West. I took the mortgage on myself, as at the time, I had a partner with bad credit rating, however I self certified as I had the required deposit and savings. My ex partner left me after 2 years. Since then I have been using my savings to cover my mortgage, however they are almost gone.

My income is £8,400 pa net. My repayment mortgage payments are currently £808 per month, I believe at 4.65%. my council tax is, even with a single person reduction £1500 pa. I have been applying for jobs which fit in with my current employment, to no avail. I have rented a spare room for £320 per calendar month, however I am still short. I have 2 more rooms that I am trying to let.

My question is what to do next? I have been looking at interest only mortgages, which I could afford, however I don't want to change lender so as not to incur fees, also the likelihood is that I would be turned down as I am not sure that lenders self certificate any more??

If I go down the interest only route, how long would I be able to do this for? I realise that the lender would require some assurance of my current mortgage being paid off, would a term life insurance suffice? I ask because I currently owe approx £98000 if I died tomorrow, the house would be sold and more than pay back that sum, therefore what is the difference if I die in 10 years time??

The term of my current mortgage is just over 13 years, which takes me to age 65.

Any help as to what I can do to stop the stress that I have been under for the last 3 years would be appreciated tx.

Edit: link http://forums.moneysavingexpert.com/showthread.php?t=2904852

Edited by Pent Up

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would a term life insurance suffice? I ask because I currently owe approx £98000 if I died tomorrow, the house would be sold and more than pay back that sum

A bit drastic but go for it. Nice to see someone taking their debts seriously.

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You never know what someone's life experiences are or, to be blunt, what cr*p has happened to them. Try not to be so judgemental.

I know it is hard as we are all prone to being so but this chap may have gone through illness or illness of a loved one, loss of a loved one, all manner of things. You can be sailing along quite comfortably in life and then, wham, something awful happens.

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I have rented a spare room for £320 per calendar month, however I am still short. I have 2 more rooms that I am trying to let.

I keep saying it and I'll say it again. Once money gets tight, everyone and his dog will be looking to rent a room out, and the market for the bottom section of the ladder - the cheapest rentals - will vapourise.

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You never know what someone's life experiences are or, to be blunt, what cr*p has happened to them. Try not to be so judgemental.

I know it is hard as we are all prone to being so but this chap may have gone through illness or illness of a loved one, loss of a loved one, all manner of things. You can be sailing along quite comfortably in life and then, wham, something awful happens.

Right on, TMT. I know that some mortgage brokers knowingly offer liar loans. It's hardly surprising that ordinary joes go for it when a broker offers it as an option. The joe is trusting the broker.

And all the rest you write is true. The guy, if it is a guy, might be a really decent person.

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I keep saying it and I'll say it again. Once money gets tight, everyone and his dog will be looking to rent a room out, and the market for the bottom section of the ladder - the cheapest rentals - will vapourise.

amen to that.

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people should need to take an IQ test before being granted a mortgage, if their IQ is lower than 75, as in this case, they should bot be allowed to apply.

£8,400 salary and £117,500 self cert mortgage.

But is ok because the house has increased in value by 25% in the last 5 years!

Edit: link http://forums.moneysavingexpert.com/showthread.php?t=2904852

really hits home how some people are willing to risk putting it all on the line just to have a house

ive been here a little while now and am very thankful, for the knowledge i now have about the true state of things

i have a cousin who ive constantly thought about after reading threads and getting clued up

he got a liar loan through a friends (yeah right) fsa, made up wage slips ect, had 10k unsecured debt lumped in on top of a %100 mortgage

152k in total, house was purchased in 2007, mortgage with nothern rock, a house same street went for 120k early this year befor the drops just had a baby working all the overtime.

i dont or wouldnt think of mentioning anything about it, but he has stopped telling me to hurry up and buy a house

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You never know what someone's life experiences are or, to be blunt, what cr*p has happened to them. Try not to be so judgemental.

I know it is hard as we are all prone to being so but this chap may have gone through illness or illness of a loved one, loss of a loved one, all manner of things. You can be sailing along quite comfortably in life and then, wham, something awful happens.

Well said

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It seems a pretty simple answer. He/she just needs to sell up and buy something they can afford? No?

All their stress and worries will be gone. Struggling to buy something you can't afford is nuts no matter how nice it is, moving banks and deals is only prolonging the agony. It's the same with people who transfer credit card balances, or bundle all their debts into one painful, sorry I meant easy, payment. Hopefully someone at MSE will tell him the easy answer.

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Maybe he had a much higher income at the time he took out the mortgage?

If he lost a good job or a business, he might have been reduced to shelf-stacking as the only job someone will hire an over-50 for.

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You never know what someone's life experiences are or, to be blunt, what cr*p has happened to them. Try not to be so judgemental.

I know it is hard as we are all prone to being so but this chap may have gone through illness or illness of a loved one, loss of a loved one, all manner of things. You can be sailing along quite comfortably in life and then, wham, something awful happens.

Yeah, and sometimes every decision a person takes in thier life turns out to be the wrong one!

There comes a point when I stop feeling sorry for people who have chosen to follow the crowd and not spent time weighing up thier options in life.

I speak from experience of my brother who at over 40 is an unemployed bankrupt, yet still suggests if's going to buy a house and insists on giving me financial advice on getting a mortgage! He's the one with the 50 inch plasma, bluray player, games consoles two or three top line mobile phones!

This person was a moron, an over 10 times income mortgage, with a partner with a bad credit. That wasn't a good sign. He could have rented from the outset like the rest of us on here. No sympathy from me.

Hardass TB who's p'eed off that even now excessive debt pays off!

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Her income was the same when she took out the mortgage, with an out of work partner. seems the plan was just to pay the mortgage out her savings? Still at least she got a nice house.

They didn't ask how much I earned, the property was £162,500 almost 5 years ago, I put down approx £45,000 as a deposit, I, at the time had £40,000 in savings. During the first year my then partner was out of work, therefore my saving reduced to £20,000, half way through the second year he left......the mortgage is in my name only. I have reduced the mortgage to approx. £98,000 over the last 5 years. I didn't rent rooms sooner as there were various jobs which needed to be completed, a catch 22 situation, however I bit the bullet and the jobs were finished in July.

I have not received or been entitled to any benefits, apart from single person council tax reduction.

Currently the market is dead, I feel that it would be a good idea to contact my lenders to ask for interest only for a couple of years, then go hell for leather to bring more money in and overpay.......thank-you for that one.

The house is currently worth around £200,000

Thank-you for all the advice

£162,500 in 2006 and it's now worth £200,000! Good luck with that!

Edited by Pent Up

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At his time of life it's unlikely that his earnings are going to increase significantly. He needs to stop deluding himself, sell the house and rent something affordable, maybe a room in a house like his lodger.

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neg eq would mean repo,and then carrying the shortfall whilst renting. Doubt (s)he has any equity, although (s)he doesn't specify. sounds like (s)he's f*****

If she's in negative equity her best plan would be to stop paying the mortgage, find a rental place she can afford easily on her wages, stash as much cash as she can can where it can't be found, and go bankrupt.

The shortfall to the bank is then written off automatically.

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  • 285 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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