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Correction

I Hope Whoever Sold This Interest Only Mortgage ...

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Like all bubbles they have within them the seeds of their own destruction. This last bubble was fuelled by "creative" loans given to people regardless of their real ability to repay (lie to buy etc.). When these loans begin to show their true teeth many houses will be finding their way back onto the market as distressed sales and down it will all come!

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That MF post is interesting on several levels.

1. Me and my misses don't earn that much at all but if we had their mortgage it'd be a piece of pee, even repayment, but then we have no car at the moment and no season tickets. Is it possible that living within one's means is pretty impossible for many modest earners these days?

2. An 80k something mortgage for average or less than average earners is a BIG MORTGAGE. It seems small when you know of people that have huge self-certs and interest onlys on their modest incomes but it's still really big. We are going to see thousands of people finding out just how insane their borrowings are over the next year as they feel the strain.

3. Unless these people are complete nutjobs, there's no reason why they should be struggling. They have a joint income and it seems modest accommodation. Ok, they have a car loan but maybe they need decent transport. If you have a hefty commute who wants to break down in the **** end of nowhere.

Edited by CrashedOutAndBurned

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Blo*dy hell- I know someone who has a 200k interest only mortgage- they borrwed about 9 times the income on a self cert- the whole mess really really scares me!

I hope your joking. :o:o:o:o

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Blo*dy hell- I know someone who has a 200k interest only mortgage- they borrwed about 9 times the income on a self cert- the whole mess really really scares me!

Mate at work is on an £160,000 mortgage.. I would think he is on less the £20,000 although I have not and would not ask such a thing...

Christ.. he rents a room out.. but he is on his own..

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This is the reality...they are, I am sure, not the only ones suffering like this and this is a very small mortgage compared to what some people have taken out in the last 2/3 years.

BUT - Yes..£80k is a big mortgage. It doesn't seem like that these days when people are buying small starter homes at £250K but £80K is £80k.

They are paying less on their mortgage than they would be in a council flat...and they still can't manage!!!

How many other people are living like this?

What do these people do - keep applying for another CC and live from month to month paying the minimum payment on an increasing number of cards.

I don't accept all this boll0x that trolls keep posting on here e.g buy a house (they forget little things like income multiples etc) get an interest free mortgage (rent from the bank) then sit back and watch your asset rise in price.

B0ll0x

Me and my partner earn an average/above average wage - we have no debt (sorry forgot about the £2.50 to the window cleaner) we have no CC/loans and very small outgoings. We have savings. But even we could not afford to live if we bought a simple 3 bed semi in an average area. How the hell are people on low incomes managing?

The figures do not add up - the reality for many is like the couple in the thread. It will be very painful - they could lose that house and still owe the bank money on the mortgage if they are not careful.

For many months I have watched house prices/researched the economy etc and feel there will be a houseprice correction. This is all done at a distance...I don't know anyone close to me who is vulnerable.

Then every now and again I see something like this and the sheer scale of what is happening and the damage from the fall out hits home and makes my blood run cold.

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People on low incomes cannot live in many instances. For someone on a sub 15k salary even renting a dank room in a Rachman hole makes living uncomfortable. If you have a low wage and debt, like many graduates, then you are in reality a minium wage worker or worse.

I knew a girl who bought a one bed flat for 42k while McJobbing on 11k (flats like that today £120+) and mortgage payment much less than the price of a rented room just a few years on. To think that a young couple on 14k each can hardly afford to rent or buy the tiniest house is going to lead to a major societal shift and not a good one.

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I know I have gone on about this before but it really irritates me so much.

WHATEVER HAPPENED TO A MIXTURE OF TENURE

When I was growing up loads and loads of people lived in lovely three bedroom houses with gardens front and back. They did not own the homes but had security of tenure. They could paint the place any colour they liked and stick nails in the walls etc.

It was called Council Housing, the tories actually built more of them than labour in the 1950s

I am NOT repeat NOT talking about high rise blocks of flats.

I am talking about the sort of low rise, spacious housing that one finds in places like the whole of the north of Norwich (where I rented such a house for a year from the tenant - yes you could even sublet them under certain circumstances - or if you kept quiet about it).

This form of tenure has now been awfully stigmatised and most of the decent houses have been sold off. Some have benefited, but for a decent society this was (and still is) a big mistake.

Those houses provided a base and a safety net.

We are worse off without them.

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That MF post is interesting on several levels.

Indeed, when they first stated "interest free" I thought that as a 'key worker' they have one of those interest free jobbies from the government. That doesn't appear to have any repayment though, you pay down the capital on the sale of the property.

Little bit disturbing that they mistake 'interest only' :( Very sad state of affairs, just goes to show what a predicament the market is facing, they have literally run out of people, even some people who want a mortgage cannot support it.

It doesn't feel like we live in a rich country when we do that to people.

Edited by BuyingBear

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Sometimes you guys make my eyes water :)

You see a post like that, on one of the main 'Bull' forums, from a poster named "Fluffbag"..... and you drink it up like Mothers milk.

I've got a real cheap bridge for sale in Sydney if anybody's interested.......jump in quick and beat the rush :):):)

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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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