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james791

Home Repossesions Rocket By 80%!

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hello all it James here, long time lurker first time poster, decided to finally join after seeing the front page of my local paper here in sunny blackpool:

SOARING SPIRAL OF BAD DEBT

Home repossesions rocket by 80 per cent.

A GROWING trend of repossession orders and bankruptcy is threatening to swamp the Fylde.

Government figures show an 80 per cent rise in mortgage repossessions in Blackpool in the past year.

The number of individuals and businesses declaring themselves bankrupt in the resort has also rocketed by 17 per cent.

Many residents are being left with debts they cannot handle after being lured by high-interest loans secured against their homes.

There have been 239 repossession orders in Blackpool in the past three months alone, while 70 individuals or businesses have declared themselves bankrupt.

These are among the highest increases in Lancashire with neighbouring Preston seeing a like-for-like rise of 53 per cent.

Today Blackpool's Euro MP Chris Davies called for more help to be offered to couples and individuals who are struggling with their debts.

The Liberal Democrat MEP said: "People should be able to get quick and easy access to help as soon as they start having money troubles.

"All too quickly a small debt grows out of control and people don't know where to turn.

"Their credit cards have kept the high street boom going and their mortgages inflated the housing bubble, but people are starting to tighten their belts."

Mike Barry, debt project development manager at Blackpool's Citizens Advice Bureau, said the figures do not make easy reading.

He said: "The message to people must be before you even think of calling one of those companies that advertises on the television to clear your debts with a secured loan, take some independent advice on what other options are available to you."

One couple caught up in the trap of high interest loans were Frank and Jeanette Sharratt.

After taking out a £2,450 loan to clothe her children the couple, from Grasmere Road, Blackpool, spent 20 years in the poverty trap.

The couple faced a constant threat of being made homeless because of the high-interest loan with London North Securities. They were finally relieved of their debt misery last year when a landmark court judgement wiped out their debt.

Mrs Sharratt said: "To anyone thinking of taking out a loan I would urge them to think very seriously first.

Wiped

I would certainly never take out a loan for non-essential items like a car or a television."

Mr and Mrs Sharratt (above) paid more than £10,000 back in interest and loan repayments before the loan, which had rocketed to £73,000, was wiped.

She added: "Borrowing money has without a doubt made our lives a misery for a long time. If I can help stop people from falling into the same trap as us then I'm happy to help."

Bad for those who are trapped in the cycle, but hopefully it means a few extra places on the market that i could afford.

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Welcome James, get posting!!!

As has been said many times before, think if these repossession levels are being hit at these "record low level IRs", then what would happen when IRs return to their historical average? Or indeed if they move up three fold like they generally do from any low to high.

NDL

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These are the same stupid people who have pushed house prices up to completely insane levels.

It will be good to watch them burn.

A 2,450 quid loan to clothe her children :blink::blink: wtf did she clothe them in?? Mr T bling :lol: ?

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Welcome. Nice to see HPC Forum has found it in their hearts to welcome a new poster in a civil manner! Always nice to have another persons input in the melting pot :D:D

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thank you all! been reading here for a long time, and a lot of sense gets talked here, far more than by many of my friends who have bought and are now crowing at me about how much equity they now have.

One of them has actually just bought a 2nd house as btl, for a ridiculous price. Tried to tell him to at least visit this site but he wouldnt have any of it. ah well.

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Oh my god, £2450 on clothes, no sympathy what so ever for them I'm afraid, now if it had been a wide screen that would be a different matter !

"After taking out a £2,450 loan to clothe her children the couple, from Grasmere Road, Blackpool, spent 20 years in the poverty trap."

£2,450 20 years ago - that's about a million quid now, isn't it?

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These are the same stupid people who have pushed house prices up to completely insane levels.

It will be good to watch them burn.

The full story doesn't make them sound quite so profligate.... and seeing as they bought their house in 1975 I don't think that they "have pushed house prices up to completely insane levels"

In fact it seems that the lending company are completely immoral scum. If I recall the verdict was disapointing as it did not comment on the usurious interest rates charged (which would have allowed many other loans to be cancelled) but rather on irregularities in the loan companies paperwork.

Triumph for debt misery couple

James Tozer and Rebecca Camber, Daily Mail

4 November 2005

A COUPLE who saw a £2,240 loan spiral until they owed £100,000 are celebrating after a judge effectively wiped out the debt.

Frank Sharratt, 68, and his wife Jeanette borrowed the money 18 years ago to help raise their five children after he had to stop work following an accident.

But a punitive interest rate and stiff charges for missed repayments saw the debt mushroom and, despite paying back the original loan four times over, they found themselves facing ruin.

They even sold all their furniture and Mrs Sharratt's wedding and engagement rings. With the couple both now retired and with no prospect of raising the money, the loan company mounted legal action to try to seize their family home.

But a judge has thrown out the case, effectively ending the threat of a homeless, penniless retirement for the couple, who have been married for 43 years.

Grandmother Mrs Sharratt, 62, said she planned to celebrate by starting to replace some of the basic possessions they had sold.

'I had to sell the carpets so we've had bare floorboards for about five years,' she said. 'At Christmas I'm getting a carpet and it will be the best present in the world.

'I feel better than if I had won the lottery. We might be living in poverty and still have no money, but now I know no one is coming for my house any more.'

The couple bought their terrace house in Blackpool, where Mr Sharratt was a tram driver, in 1975. In 1987, after an accident left him unable to work he decided to take out a loan to cover day-to-day expenditure. London North Securities sold them a £2,240 loan at an annual interest rate of 39.5%.

They had to pay £71.46 a month for ten years to clear the debt, meaning they would repay £8,640. But monthly interest at a compound rate of 2.8% was charged on any missed instalments, and as the Sharratts started to fall behind, their debt began to multiply.

By April 1994, the default payments were £123 a month, and with legal fees added on top, the total debt stood at £5,231. A year later the Sharratts increased their monthly payments to £100, but the debt was running away from them. By July 1999 it had topped £30,000, and by December 2000 it was £47,430.

Finally, having handed over £10,000 - more than four times the value of the original loan - the Sharratts stopped paying. The debt has now reached around £100,000, and LNS has fought to execute a possession order on their home, which is worth about that amount. "

Edited by Solvent Celt

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A 2,450 quid loan to clothe her children :blink::blink: wtf did she clothe them in?? Mr T bling :lol: ?

Boll0x - I find it hard to believe that it was possible to spend that amount of money on kids clothes twenty years ago - unless they were either 1)made of gold or 2) she had thirty kids!!!.

maybe they just want sympathy - I can just see it-

"for gods sake don't tell them we took out the loan to landscape the garden - say it was for kids clothes"

If they did spend that amount of money on clothes then they are remarkably stupid.

Then again - some people feel that their kids have the right to puke regurgitated rusks down designer bibs

EDIT

Just seen the post above - I feel sorry for them (and angry at the lending company) but it just goes to show that when incomes dry up the best thing to do is tighten your belt and ride out the bad times - not try to carry on living as you were by borrowing money.

Edited by 2005

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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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