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Bearfoot

If I Know 2 People Who Can't Pay Their Mortgage

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I have 2 friends who have their own (mortgaged) properties. They are not linked in any way.

One kept bragging about `how weathly he felt` and kept telling us to buy asap, or we will miss the boat...

He has fallen behind on 5 mortgage payments and was in the lucky position of relatives helping him out of a very big hole, otherwise his wife & kids would've lost their home.

The other, left her partner, got him to buy her out of their joint property. She bought a 2 bed Terrace for 130K and has a mortgage of around 100k. (she only earns about 16K).

Sitting up the pub the other night, she announced that she either has to sell or rent the property out. As she cannot keep up with the mortgage, the bills and her 8 grand credit card debt she has run up. When she was told that she would be responsible for anything breaking down if she rented the property out, eg heating, she said oh! I didn't realise.

Now that's 2 people I know who are genuinley struggling to keep up with paying the Mortgage, quite sad & worrying really.

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I know of one couple. They tried to sell last year and missed the boat. They are now 2 months behind. Why they did not lower their price is beyond me, I don't have the heart to ask them why they did lower the price.

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No details, just that I have friends and friends of friends who are either struggling or have had to take serious action and downsize to pay off debts etc.

The same lot who sniggered when I str'd :D:lol::lol:

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It's sad when it's people you know,even if it is self inflicted :(

Mortgage lenders dont seem to give much leeway on late payments at the moment (and why should they?). I noticed this on the Trevor McDonald programme last week. They pulled the plug in less than 9 months.

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I have a friend just down the road, single girl, bought a one bed flat about 2 years ago.

She's finding she can't pay the mortgage on her flat, so is now going to rent the place out and move into cheaper accommodation.

I asked her why she didn't sell it rather, and she told me because of the high redemption penalties on the mortgage. Basically she can't afford to sell it.

This is in London, so it would probably sell for less than she paid for it.

I really hate to think what would happen if rates hit 6% or she loses her job...

Edited by BandWagon

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I know people with very large CC bills and a mortgage, but even though they were left money and paid off their CC's, they've since run them up again. :rolleyes: They can afford their payments at the moment but if one were to lose their job, they'd be buggered!

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Sorry to spoil the party but I don't know anyone who can't pay their mortgage, probably because they bought years ago and are well established in their careers.

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Sorry to spoil the party but I don't know anyone who can't pay their mortgage, probably because they bought years ago and are well established in their careers.

Same here, i dont know anyone but then they all bought +5 years ago. First time i havn't disagreed with you BL :);)

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I think I met one this afternoon. I'm looking for a cheap place to live for a year or so until (visa officer permitting) I emigrate, and went round to see a place where some woman was eager to rent out a room in her house. Obviously hadn't before as it wasn't even a bedoom yet, and a bit too desperate for my liking.

Just checked nethouseprices.com and she bought it for 250,000 in October 2003, so I guess that two-year cut-price fixed-rate mortgage is running out and she's up sh*t-creek. Looked like a pretty crappy area too, though admittedly that's by the standards of someone who currently lives on 'Investment Banker and Millionaire Road' :).

In future I'll be checking nethouseprices.com _before_ I go for a look at places to rent.. I don't want the place getting reposessed under my feet :).

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Guest Charlie The Tramp

I know that 54,345 people definitely had problems paying their mortgage during the first 6 months of this year. :(

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Guest Charlie The Tramp
How far in arrears are they?

Sorry can`t help you there. I believe the CMC publish detailed stats.

That was the number of actions entered into by the lenders in the County Courts for England and Wales according to the DCA

Wasn't it 6 months or more

Q3 has not been published by the DCA yet.

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Guest muttley

I don't know anyone having problems with their mortgage

I do know one couple who have MEWed and spent it on a car and holidays (or as she put it,"to pay off our debts" :huh: ),but they still pay their mortgage.

Maybe I need some more friends!?

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Two that i know of are complaining, not just morgages bust costs in general

One is a teacher on 25k, she lives on her own in a two bedroom house, she has about 80k morgage on the property, and when she went to get her morgage done again after the deal expired realised she wouldnt have much to live on (admitedly the girl loves holidays). She is thinking off selling up and moving abroad or getting a lodger..

Another friend also a teacher bought a property with her dad for 140k, they are sharing the morgage and hoping to sell for about 190k. Costs have been much higer than they imagined and alot of her income goes into an empty property she doesnt live in, they have been doing it up for 12 mounths... They are working extra hard to get it finished and hoping to sell before the christmas lull...

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Guest muttley
Credit to you BL...you are maintaining your consistency...the consistency to scribe posts that are absolutely incredulous..... Just thought I'd ask you, if you do fall on hard times (which I am sure you won't) and you need an extra lodger to take that big bad wolf called the 'bank' from your door, please consider me for a lodger.....I'd love to live in that wonderful fantasy world you live in....

Why is that incredulous?

People in my (ahem) age bracket have lived through two massive house price booms.Providing they didn't MEW,then presumably their mortgage now looks like a home improvement loan.

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My bother in-law is just coming off his 2 year low interest rate deal. Quite frankly, he is shit.ing bricks right now. Family will help him for while, but then he will have to downsize - if he can sell that is.

Lots of folks coming off thier low interest start ups. 5% base rate will be last nail in their coffins.

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I dont know anyone who can't pay their mortgage, but I do have a good friend

who is selling her house so she can give her ex-husband his equity and pay

off her debts. Luckily they bought in 1997 so she will still have a few grand left

afterwards (assuming she gets near asking, which she should as its reasonably

priced). I feel for her though as she will need to rent and get a new job (works

from home currently) and she has a young daughter too.

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Guest The dude
Why is that incredulous?

People in my (ahem) age bracket have lived through two massive house price booms.Providing they didn't MEW,then presumably their mortgage now looks like a home improvement loan.

Edited by The dude

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Guest muttley
To be frank Muttley...I'm not even in your league regarding house prices....as someone living back with a parent, I don't even think that I could reply to any of your posts with any kind of insight or wisdom.....nor yours mine.....We are both living in a different world. I would be a potential FTB.....but I'm not......owning a house for me IS a dream.  I would appreciate you ignoring any posts I may make in the future as we are totally poles apart from each other..

Maybe we can pool our wisdom

I reckon anyone who quotes Groucho and listens to The Smiths can teach me SOMETHING.

In 1988 I was back living with a parent too.I got lucky regarding the timing of the housing market cycle.I hadn't paid any thought to it,I just got lucky.The cycle is moving downwards now.

I visit this site for information.I find FTB information very useful,and I willingly offer information regarding previous cycles.So I'll still be reading your posts.

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I don't know anyone that's admitting to being in trouble (though I did a couple of years ago). Another one here who knows mainly people who bought years ago and are comfortably off now, though a number of friends have now 'traded up' recently so things may change :( .

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Guest muttley
I don't know anyone that's admitting to being in trouble (though I did a couple of years ago).  Another one here who knows mainly people who bought years ago and are comfortably off now, though a number of friends have now 'traded up' recently so things may change  :( .

It's a fair point.How many of us have friends that would admit they were having problems repaying their mortgage?

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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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