Jump to content
House Price Crash Forum
Realistbear

One Third Of Homeowners Are Now "mortgage Prisoners"

Recommended Posts

http://blogs.telegraph.co.uk/finance/ianmcowie/100010526/frozen-bank-rate-brings-no-cheer-to-mortgage-prisoners/

Frozen bank rate brings no cheer to 'mortgage prisoners'
By Ian "EE-Anne" CowieYour MoneyLast updated: June 9th, 2011
316,456 CommentsComment on this article
Bank of England base rate remaining frozen at 0.5pc for two years and three months after today’s announcement will bring no comfort to a third of homebuyers who are ‘mortgage prisoners’ because of stricter new lending criteria and falling house prices.

Lower rates are a bonus to the Banksters only. Everyone else pays to keep them in the bonus based lives of luxury they do not deserve? Choo going to do about it?

Share this post


Link to post
Share on other sites
Frozen bank rate brings no cheer to 'mortgage prisoners'

They better had be f*cking happy, it's all for their benefit.. I sure as hell ain't happy.

Share this post


Link to post
Share on other sites

They better had be f*cking happy, it's all for their benefit.. I sure as hell ain't happy.

Friends of mine are "mortgage prisoners" and to be fair I do sympathise.

Bought a reasonable 3 bed semi for about £250k, both employed in good jobs.

Property now valued at £220k so unable to switch mortgage and having to pay 6.5%.

If they were paying 3.5% they'd be £500 a month better off and able to pay down some of the capital.

It seems to me they got screwed over twice, buying at the peak and locked into a poor deal.

Share this post


Link to post
Share on other sites

Friends of mine are "mortgage prisoners" and to be fair I do sympathise.

Bought a reasonable 3 bed semi for about £250k, both employed in good jobs.

Property now valued at £220k so unable to switch mortgage and having to pay 6.5%.

If they were paying 3.5% they'd be £500 a month better off and able to pay down some of the capital.

It seems to me they got screwed over twice, buying at the peak and locked into a poor deal.

Using brain cells could have avoided both fates?

Share this post


Link to post
Share on other sites

Friends of mine are "mortgage prisoners" and to be fair I do sympathise.

Bought a reasonable 3 bed semi for about £250k, both employed in good jobs.

Property now valued at £220k so unable to switch mortgage and having to pay 6.5%.

If they were paying 3.5% they'd be £500 a month better off and able to pay down some of the capital.

It seems to me they got screwed over twice, buying at the peak and locked into a poor deal.

That'll teach 'em!

Share this post


Link to post
Share on other sites

never mind joe taxpayer/saver getting screwed on their behalf.

How is the tax payer/saver getting screwed on their behalf?

They are paying 6.5% interest on their mortgage. The lower interest rates have done nothing except widen the profit margin of their lender.

Share this post


Link to post
Share on other sites

How is the tax payer/saver getting screwed on their behalf?

They are paying 6.5% interest on their mortgage. The lower interest rates have done nothing except widen the profit margin of their lender.

Beautifully executed by the Banksters who have topped this monster scam off with bonuses to boot! The perfect crime against humanity.

Share this post


Link to post
Share on other sites

Oh how my heart bleeds for the poor mortgage prisoners. Forced to take on a huge mortgage on an overpriced house they were press-ganged into buying.

Not

:lol::lol::lol::lol:

Share this post


Link to post
Share on other sites

Oh how my heart bleeds for the poor mortgage prisoners. Forced to take on a huge mortgage on an overpriced house they were press-ganged into buying.

Not

:lol::lol::lol::lol:

Your own signature says you almost bought a house in 2007 and had a lucky escape.

Clearly you have 20/20 hindsight.

Share this post


Link to post
Share on other sites

Friends of mine are "mortgage prisoners" and to be fair I do sympathise.

Bought a reasonable 3 bed semi for about £250k, both employed in good jobs.

Property now valued at £220k so unable to switch mortgage and having to pay 6.5%.

If they were paying 3.5% they'd be £500 a month better off and able to pay down some of the capital.

It seems to me they got screwed over twice, buying at the peak and locked into a poor deal.

So there you have it. Part of the problem. Both you and they think a quarter of a million quid is ok for a "reasonable" (hardly sounds inspiring does it?) 3 bed semi. Did they stop to think for one minute just how much 250 grand is? But then it was easy money, wasn't it. Piece of cake.

Share this post


Link to post
Share on other sites

How is the tax payer/saver getting screwed on their behalf?

They are paying 6.5% interest on their mortgage. The lower interest rates have done nothing except widen the profit margin of their lender.

In 2007 the base rate was 5.75% so mortgage rates would have been about 7.75% on average?

Savings easily 6% now a struggle to get 3% easy access?

Share this post


Link to post
Share on other sites

Those caught in this mortgage trap are typically:

Homeowners whose property has dipped in value, leaving them with less than a 10% deposit, or putting them in negative equity;

Those whose incomes have dropped or remained flat since they last took out a mortgage

Anyone with even the smallest amount of adverse credit, such as one missed payment on a credit card

Middle-aged borrowers on interest-only deals

Self-employed workers who now need to prove their income rather than just being able to assure the lender they can afford the loan

Borrowers will face far more detailed checks on whether they can afford to repay their loan.

Although the rules are not official yet, most of the High Street's biggest lenders have already adopted a tougher approach, fearing the wrath of the FSA.

Trade body the Council of Mortgage Lenders estimates 3.2m of the six million people who took out a mortgage since 2005 would not be able to get a new deal because of these changes.

But Money Mail estimates, based on the latest figures, suggest this could be several hundred thousand more, equating to 30% of the UK's 11.4 million mortgage holders.

Share this post


Link to post
Share on other sites

Your own signature says you almost bought a house in 2007 and had a lucky escape.

Clearly you have 20/20 hindsight.

I chose not to jump in, because I found this website just before committing to a purchase involving a large mortgage and it confirmed the nagging doubts I was having at the time. That's where the luck came in .

Used most of the the deposit money to buy gold. Has more than doubled in value so hoping to buy a better house for cash or with a small mortgage sometime in the next year or two.

Foresight seems to have served me well so far, even if I needed a bit of extra confirmation to help me to resist the pressure of others at that time.

Thanks for your comments, and for giving me the opportunity to clarify things for you :D

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.