live in hope Posted February 24, 2013 Share Posted February 24, 2013 innovativitivity So is the whole story a crock of shit? It sounds too much. Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted February 24, 2013 Share Posted February 24, 2013 Owe 64k intrest 2700pcm how does that work then? That's what I was thinking until you asked the same question. A lot higher than 50% APR too. Shit bust. Burton is the pits. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted February 24, 2013 Share Posted February 24, 2013 So is the whole story a crock of shit? It sounds too much. Definitely some details missing. Quote Link to comment Share on other sites More sharing options...
live in hope Posted February 24, 2013 Share Posted February 24, 2013 Definitely some details missing. i expect they will get by somehow. No one starves to death in this country. lol Quote Link to comment Share on other sites More sharing options...
stormymonday_2011 Posted February 24, 2013 Share Posted February 24, 2013 (edited) The article indicates that there are an estimated 700,000 properties covered by interest only loans with no repayment mechanism and another 400,000 where the repayment mechanism will leave a sizable shortfall. Worth noting that this particular bomb is timed to go off fully some time about 2020 which is when most of the post war baby boom bulge will start retiring (ie those born about 1955-1965). This will be a massacre as those stuck with no means of repaying will be competing to sell in the market with those who own their homes outright downsizing. If they start flooding the market then that is going to put a major downward pressure on house prices with a matching knock on effect on the financial system as banks have to take hefty write downs. My guess at least some of these assets will effectively be 'nationalised' at some time in the future to stop that happening. Edited February 24, 2013 by stormymonday_2011 Quote Link to comment Share on other sites More sharing options...
tomandlu Posted February 24, 2013 Share Posted February 24, 2013 The article indicates that there are an estimated 700,000 properties covered by interest only loans with no repayment mechanism and another 400,000 where the repayment mechanism will leave a sizable shortfall. If they start flooding the market then that is going to put a major downward pressure on house prices with a matching knock on effect on the financial system as banks have to take hefty write downs. My guess at least some of these assets will effectively be 'nationalised' at some time in the future to stop that happening Sounds plausible - who the winners and losers in the outcome are going to be is very hard to say. All one can say is that there will be an outcome. Taking it for granted that the feckless will pay the price and the prudent will win is a matter of faith rather than reality. TBH I'm not too bothered - I just don't want serfdom. Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted February 24, 2013 Share Posted February 24, 2013 The three-bedroom house in Burton upon Trent, Staffordshire, has been on the market for months without attracting much interest and they recently slashed the asking price from £134,950 to £122,500. I wouldn't call 10% off slashing prices, would you? Quote Link to comment Share on other sites More sharing options...
Jolly Roger Posted February 24, 2013 Share Posted February 24, 2013 It's almost as if expecting a bureaucratic state to be compassionate and understanding towards your individual concerns is misguided. Quote Link to comment Share on other sites More sharing options...
Hold Fast Posted February 24, 2013 Share Posted February 24, 2013 The Jacksons’ loan, taken out in 2006, is with Northern Rock, the failed lender that encouraged tens of thousands to take on high-risk mortgages no need to reposses anyone then, mis-selling to the rescue Quote Link to comment Share on other sites More sharing options...
billybong Posted February 24, 2013 Share Posted February 24, 2013 (edited) Apparently they were paying £1000 per month then when they got in difficulties that dropped to £300 per month interest only and now the demand is for £2700 per month - apparently. Apparently the mortgage is £64000 but it's not clear whether that is the original mortgage or the sum outstanding after the 3 years of monthly capital repayments - from what they say about £700 per month so maybe about £20,000 in total? If the £2700 monthly arrears is all interest and penalties etc then it sounds a total rip-off but if it's just recognising that the capital sum isn't being paid off then that doesn't seem so bad. There again if there's been some government involvement and support since they were in difficulties then very likely everything is topsy turvy and the accounts are likely in a muddle and the £2700 could be a massive accounting error - little of it is clear. As usual the newspaper clarifies nothing and goes into little or no detail but it's filled a sheet of paper. Edited February 24, 2013 by billybong Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted February 24, 2013 Share Posted February 24, 2013 The article glosses over the fact that they're expecting to earn 60k, without working for it. Funny that. The article sort of hints at a related issue around risk strategy:- "The Jacksons’ loan, taken out in 2006" , (they are approaching 70th birthdays) ".......But with the onset of recession their joinery business failed and they asked –...." Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 24, 2013 Share Posted February 24, 2013 The article indicates that there are an estimated 700,000 properties covered by interest only loans with no repayment mechanism and another 400,000 where the repayment mechanism will leave a sizable shortfall. Worth noting that this particular bomb is timed to go off fully some time about 2020 which is when most of the post war baby boom bulge will start retiring (ie those born about 1955-1965). This will be a massacre as those stuck with no means of repaying will be competing to sell in the market with those who own their homes outright downsizing. If they start flooding the market then that is going to put a major downward pressure on house prices with a matching knock on effect on the financial system as banks have to take hefty write downs. which will feed on its own tail as mortgages become more scarce - overall a art of the mechanism that will see decadal house price falls owing to demographics, until the 2030s imho My guess at least some of these assets will effectively be 'nationalised' at some time in the future to stop that happening. oh they'll try - but will no longer have the democratic balance to power to do so Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted February 24, 2013 Share Posted February 24, 2013 (edited) The article sort of hints at a related issue around risk strategy:- "The Jacksons’ loan, taken out in 2006" , (they are approaching 70th birthdays) ".......But with the onset of recession their joinery business failed and they asked –...." exactly , these peeps seem relatively prudent , the loan should have been 200K+ taken out in CHF against a property in outer mongolia, i think the relative prudence of these guys should be seen as a good thing Edited February 24, 2013 by Tamara De Lempicka Quote Link to comment Share on other sites More sharing options...
stormymonday_2011 Posted February 24, 2013 Share Posted February 24, 2013 (edited) exactly , these peeps seem relatively prudent , the loan should have been 200K+ taken out in CHF against a property in outer mongolia, i think the relative prudence of these guys should be seen as a good thing Maybe that fabled canny Chinese property investor eager to punt his money on the Burton house market failed to turn up. Edited February 24, 2013 by stormymonday_2011 Quote Link to comment Share on other sites More sharing options...
200p Posted February 24, 2013 Share Posted February 24, 2013 (edited) BEEEEEP Edited February 24, 2013 by Notanewmember2 Quote Link to comment Share on other sites More sharing options...
ROC Posted February 24, 2013 Share Posted February 24, 2013 Definitely some details missing. There is usually enough in the article. The two prices and dates match a house for sale in Elm Road; a joinery company registered there has folded, underwater about 40k; the director record has 1944 as d.o.b. and Jackson is a pretty lazy attempt at a name change. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted February 24, 2013 Share Posted February 24, 2013 (edited) There is usually enough in the article. The two prices and dates match a house for sale in Elm Road; a joinery company registered there has folded, underwater about 40k; the director record has 1944 as d.o.b. and Jackson is a pretty lazy attempt at a name change. I thought that too, and the photo from the Wail article looks like it could be taken from the same place as photo #9: http://www.rightmove.co.uk/property-for-sale/property-39292142.html edit: RM house looks like this one: http://maps.google.com/maps?q=DE15+9AQ&hl=en&ll=52.801308,-1.618853&spn=0.008342,0.022724&geocode=+&hnear=DE15+9AQ,+United+Kingdom&t=m&z=16&layer=c&cbll=52.801184,-1.617639&panoid=8v8zohGCB2N9KKpXjGUT5Q&cbp=12,217.37,,2,-6.21 Edited February 24, 2013 by cheeznbreed Quote Link to comment Share on other sites More sharing options...
Venger Posted February 10, 2015 Share Posted February 10, 2015 Hilarious, they are 70 years old with a 64k mortgage. On which planet does this make any sense? They needed to sell in 2009 but I guess they waited for the market to recover so they could downsize and walk away with some HPI 'profit'. So basically these scumbags borrowed more than they could afford thereby upping housing prices which means us current lot can't afford a box in cardboard city. Not to mention in their old age they will be a drain on the state and want free bus passes; also they'll probably vote for some party that makes things worse. A law needs to be enacted to put these people in prison for recklessness as we're all suffering because of these scumbags. The article indicates that there are an estimated 700,000 properties covered by interest only loans with no repayment mechanism and another 400,000 where the repayment mechanism will leave a sizable shortfall. Worth noting that this particular bomb is timed to go off fully some time about 2020 which is when most of the post war baby boom bulge will start retiring (ie those born about 1955-1965). This will be a massacre as those stuck with no means of repaying will be competing to sell in the market with those who own their homes outright downsizing. If they start flooding the market then that is going to put a major downward pressure on house prices with a matching knock on effect on the financial system as banks have to take hefty write downs. My guess at least some of these assets will effectively be 'nationalised' at some time in the future to stop that happening. Only pleasing part is banks are sometimes now actually going for the repos, against these 'victims' as in the Nottingham guy story 'I paid the interest over 25 years' - 'debt isn't real' - 'Can't repo cause I'm freeman of the land.' GTFO. Quote Link to comment Share on other sites More sharing options...
CHF Posted February 10, 2015 Share Posted February 10, 2015 Haven't read all the comments but I bet their NOT adding on£2700 per month. unless they are paying circa 50% interest rate? Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted February 10, 2015 Share Posted February 10, 2015 If homes did not cost so much. The lending for those homes was responsible, taking into account other loans and long-term commitments. A deposit of 10% for an affordable home was a must. Interest only without an assigned monitored investment plan was banned. More people could and would own and eventually pay for their home no problems....but fewer, smaller loans at low interest rates doesn't make lenders much money...rolling over the compounded interest on a home with equity makes them much more......cheaper house prices doesn't make the rich indebted multi property owners who only ever pay the interest only, that make more from those who have no other choice but to rent from them and the tax payers that pay their rents so much money But homes did cost that much 30-40 years ago so why is it a problem for 70 year olds Quote Link to comment Share on other sites More sharing options...
winkie Posted February 10, 2015 Share Posted February 10, 2015 But homes did cost that much 30-40 years ago so why is it a problem for 70 year olds Securitization..... Is the name of the game. Quote Link to comment Share on other sites More sharing options...
gf3 Posted February 10, 2015 Share Posted February 10, 2015 They will probably end up in rented accommodation on HB costing the state more money than if they left them there. Nothing like cutting you own nose off to spite your face. Funny enough my mortgage statement came through and I owe £64,000 on IO it would cost me £36 a month. I wonder how much HB their new land lord will get a month. Quote Link to comment Share on other sites More sharing options...
Venger Posted February 10, 2015 Share Posted February 10, 2015 They will probably end up in rented accommodation on HB costing the state more money than if they left them there. Nothing like cutting you own nose off to spite your face. Funny enough my mortgage statement came through and I owe £64,000 on IO it would cost me £36 a month. I wonder how much HB their new land lord will get a month. Even if that is so, it's the right thing to do. Pay your debts. And we've got landlords with 700 houses (not Wilsons) in grim areas, with loads of Housing Benefit complaining they're not getting paid/arrears because of Universal Credit test. £500pm+ for basic houses in Wales. Maybe when it smooths out over time, deflation takes hold, some will be able to buy such homes from bankrupt landlords - such as £1K - £1.5K flats in Salford in 1994-95 auctions. Quote Link to comment Share on other sites More sharing options...
Venger Posted February 10, 2015 Share Posted February 10, 2015 (edited) They will probably end up in rented accommodation on HB costing the state more money than if they left them there. Nothing like cutting you own nose off to spite your face. Funny enough my mortgage statement came through and I owe £64,000 on IO it would cost me £36 a month. I wonder how much HB their new land lord will get a month. Have you considered STRing. I take from that it would be £36 per month if you were on IO (but that you're not). Into a HPC £64,000 becomes significant debt again - maybe even negative equity? Edited February 10, 2015 by Venger Quote Link to comment Share on other sites More sharing options...
Venger Posted February 10, 2015 Share Posted February 10, 2015 They will probably end up in rented accommodation on HB costing the state more money than if they left them there. Nothing like cutting you own nose off to spite your face. Funny enough my mortgage statement came through and I owe £64,000 on IO it would cost me £36 a month. I wonder how much HB their new land lord will get a month. Nothing like a homeowner wanting to protect the HPI eh. Quote Link to comment Share on other sites More sharing options...
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