IO Self-Cert tale of woe

[janch]

We can expect more of these stories.........

https://www.bbc.co.uk/news/business-44851363

[regprentice]

'The King's case has twice been rejected by the independent adjudicator, the Financial Ombudsman Service (FOS).

In its final decision, in July 2016, the FOS confirmed that Lloyds was not obliged to offer a cheaper mortgage, and said it could not see what else the bank could have done to help the Kings.

Lloyds has not yet repossessed the King's home, although it obtained the legal right to do so a year ago.

It says it is still willing to consider any reasonable proposal.'

Reassuring to see that we haven't given any concessions to IO mortgage holders yet. The banks will happily keep them on the hook for the debt for the foreseeable future... Just a shame they won't foreclose and put that property back into the circulation. 

[Captain Kirk]

1 minute ago, regprentice said:

'The King's case has twice been rejected by the independent adjudicator, the Financial Ombudsman Service (FOS).

In its final decision, in July 2016, the FOS confirmed that Lloyds was not obliged to offer a cheaper mortgage, and said it could not see what else the bank could have done to help the Kings.

Lloyds has not yet repossessed the King's home, although it obtained the legal right to do so a year ago.

It says it is still willing to consider any reasonable proposal.'

Reassuring to see that we haven't given any concessions to IO mortgage holders yet. The banks will happily keep them on the hook for the debt for the foreseeable future... Just a shame they won't foreclose and put that property back into the circulation. 

+1

Quote

Nevertheless in 2008 Mr and Mrs King took out an interest-only, self-certified mortgage of £337,500, sold to them by an Independent Financial Adviser (IFA).

At the time they already had debts of £58,000. And they were apparently unaware they needed to save up to pay off the capital when the loan matured.

That's right, when a bank gives you a mortgage, it's best to assume it is a gift and never needs to be paid back.

[dougless]

They borrowed a great deal of money and exploited a loophole in the regulations but I wonder how many other people are up against it like this couple.  If you follow the money the bank is already a winner in terms of interest payments received and if this couple get repossessed the bank win again.  Got to love bankers.......

[Si1]

[Si1]

Looks a nice house too.

[winkie]

Things happen sometimes...Life, not the end of the world....I am sure their mortgage repayments have been a lot less over the years than many who rent living in a worse place, people who rent that will never have the opportunity to buy......perhaps they will now have no other option but to rent like many thousands are already forced to do....are some people special flowers or what?

[GeneCernan]

How stupid do you have to be to think that you can borrow 1/3rd of a million pounds and not be expected to pay it back one day? 

[opt_out]

32 minutes ago, GeneCernan said:

How stupid do you have to be to think that you can borrow 1/3rd of a million pounds and not be expected to pay it back one day? 

How do you tell the difference between dumb and playing dumb when it comes to the chance to claim for mis-selling.

 

 

Edited July 21, 2018 by opt_out
bit harsh ?

[GeneCernan]

12 minutes ago, opt_out said:

How do you tell the difference between dumb and playing dumb when it comes to the chance to claim for mis-selling.

 

 

Spot on to be honest. They're just playing the "I got ill and the bank wants kick me out of my home" card in the hope of picking up more free money. Funny how the odious BBC never runs "We're young and we'll be paying someone else's mortgage for the rest of our lives" stories.

[winkie]

9 minutes ago, GeneCernan said:

Spot on to be honest. They're just playing the "I got ill and the bank wants kick me out of my home" card in the hope of picking up more free money. Funny how the odious BBC never runs "We're young and we'll be paying someone else's mortgage for the rest of our lives" stories.

It is not their home....it is the banks home, they have not been paying for it only renting it, servicing the debt they borrowed to purchase it.....they have no way to pay for it, no investment put aside to pay for it.... perhaps the next people that buy it may one day actually own it......one day may have no further rent to pay.

[winkie]

An IO mortgage is a very cheap and secure tenancy only as long as you play within the rules.

.....it is only a sizeable cash deposit or a BTL mortgage (sizeable leveraged deposit) that allows access to that exclusive club.

[Si1]

1 hour ago, opt_out said:

How do you tell the difference between dumb and playing dumb when it comes to the chance to claim for mis-selling.

 

 

Check if they watch #### property programmes like LLL

[Bonkers2016]

Quote

Nevertheless in 2008 Mr and Mrs King took out an interest-only, self-certified mortgage of £337,500, sold to them by an Independent Financial Adviser (IFA).

At the time they already had debts of £58,000. And they were apparently unaware they needed to save up to pay off the capital when the loan matured.

I must be living life the wrong way, all that debt!!! Or maybe people have just become so desensitized to those kind of numbers?

 

[simvastatin]

2 hours ago, winkie said:

It is not their home....it is the banks home, they have not been paying for it only renting it, servicing the debt they borrowed to purchase it.....they have no way to pay for it, no investment put aside to pay for it.... perhaps the next people that buy it may one day actually own it......one day may have no further rent to pay.

They must have also taken money out for holidays and other entertainment expenditure for it to get so high

[thewig]

Homeowners must be saved at any cost. Burn a couple of scumbag tenants as a token offering to appease the bankers?

[Guest]

Firstly lets deal with this Guys health....Seriously quite sad, poor bloke, It's not pleasant I have been seriously ill a couple of times myself. OK, not lets put that to one side.

Secondly his financial and personal decisions in life.. They have been totally s***, he was heading for storm anyway, no insurance cover for difficulties etc etc etc, total head on crash job.

 

Right, what does he expect, to now be handed over a house. even though he was probably going to lose it anyway. If I was face to face with him and he was not ill I would probably let him know what people like him did to people like me who refused to break the law and take out fraudulent mortgages, something I am wondering to this day if it was the right move. Imagine it, me wondering if being honest was sensible when 100,000's got away with something  criminal supported by the governmemnt

[Guest]

3 hours ago, GeneCernan said:

Spot on to be honest. They're just playing the "I got ill and the bank wants kick me out of my home" card in the hope of picking up more free money. Funny how the odious BBC never runs "We're young and we'll be paying someone else's mortgage for the rest of our lives" stories.

Posted something on these lines on another thread today, the true victims in the UK are the self reliant people who never play the "victim". How many of you know wannabe buyers who are forced renters living in far worse homes than that who might have a good degree or even two and work in a medical high tech job doing 60 plus hours every week, this guy drives for goodness sake,and don;t give me all that "The knowledge" crap

 

PS  come to think of it, this post should be in my DEBT DEBT DEBT thread ?   it's perfect

Edited July 21, 2018 by Guest

[spyguy]

They paid on IFA to lie on their behalf.

Sll problems with the mortgage need to be referred to the IFA.

Of course they probably committed mortgage fraud

[NuBrit]

Quote

Mr King phoned the Halifax - part of the Lloyds Banking Group - to tell them he could no longer afford to make repayments. He was given two choices - to extend the term of the mortgage, or take a short "payment holiday."

He chose the latter.

But Mr King believes the bank should also have offered him a switch to a lower interest rate.

If our government think they should get a special deal on Brexit, is it unreasonable for these people to be offered the same?

I mean, it's not like this couple are mad BTL'ers, this is their long-term family home. If anyone deserve a special deal, surely it's them? 

[Mossie]

8 hours ago, Si1 said:

Aww Defenders of their house - but it's also their debt.

"But ten years after they took out a mortgage"

I have a headache and not thinking too clearly, but that suggests to me they bought the house in 2008, but BBC News is a bit evasive about it.  They didn't refinance house they owned in 2008 to IO?   So in 2008, into credit-crunch, they went out and actively bought that family home, requiring a £337,500 mortgage.

2008.  People here were claiming the buyers from 2004 onward were looking at difficult times, as they counted the crash, but this couple buying at whatever the final price was with their £337,500 IO mortgage.  

Rents weren't floored, as zirp and QE came in.  Wonder what that house is worth today against their 2008 buying price.   At least didn't read them bringing in any kids into the case.   Loads of renting families with kids, priced out. 

"Instead of paying off the debt, the couple planned to downsize."

Why don't they just sell and downsize then?

Why all the specialness because they're not BTLers?  Still their debt.  Renters have stresses and illnesses to cope with too.

[Arpeggio]

I want to play a game. Only one can win, another loses. If Peter and Lisa King eventually sell their house for a profit or break even they win, the liability is then on the person who bought, the greater fool. If Peter and Lisa eventually have sell at a loss then they are the losers of the game and are the greater fools at the end.

Will Peter and Lisa King escape if someone takes their place?

The housing market, it's all cuddly and nice.

What a ***king joke, the whole thing lol.

Buy Books to read, buy music to listen to, buy food to eat, buy a watch so you can tell the fricking time, buy a phone to communicate, buy a TV so you can fricking watch Television.

Buy a house to live in it? nah so you can make muneeeee!

Rant over.

[Mossie]

10 hours ago, Si1 said:

Laughing at some of the posts here, in agreement with them.

Possible match?   Offers in excess of £575,000.  https://www.rightmove.co.uk/property-for-sale/property-53408598.html

I can't see it on the Streetview and a bit too tired to focus on down on Streetview.

1 hour ago, Mossie said:

 So in 2008, into credit-crunch, they went out and actively bought that family home, requiring a £337,500 mortgage.

"Instead of paying off the debt, the couple planned to downsize."

Why don't they just sell and downsize then?

Why all the specialness because they're not BTLers?  Still their debt.  Renters have stresses and illnesses to cope with too.

There's some other stuff I could post, but I can't be sure it's the same 'former shopkeeper'.  Also there's a pic for another story, where I can't tell if it's same person or not.

People seem to forget there has been surging HPI since 2008-09, and in no small part due to BTL chums.   Lots of people playing victim when it comes to protecting their more than generous positions, and trying to cloud high-risk actions they took.   What is he talking about being 'desperate' for the mortgage.  Loads of us were desperate to buy in 2008, but had to weigh up what we could afford, and what we were willing to pay, and type of house, to bring up our families.  10 years later, still renting, and more priced out, and having to read about 'victims' and 'missold' and other 'owner plights'.   No one is coming to pay me back 10 years of rent.  Just BTLers owning £1Trillion of the housing stock and prices in 2018 at around new very sharp peaks new peaks in my area.

[Mossie]

3 hours ago, Mossie said:

"But ten years after they took out a mortgage"

I have a headache and not thinking too clearly, but that suggests to me they bought the house in 2008, but BBC News is a bit evasive about it.  They didn't refinance house they owned in 2008 to IO?   

It isn't very clear is it.  Can only assume deliberately so.   If it's the same house, then RM Sold Prices (House price data produced by Land Registry) only shows a year 2002 purchase transaction, at £220,000.

https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=54125502&sale=34421502&country=england

That's not to rule out possibility it was bought in 2008 and the transaction details not showing, as happens from time to time (maybe with sale info/data from auction, and purchases by companies)

So I still rule in the possibility they went on some sort of refinancing MEW spree against bubbled-up higher 2008 value (vs 2002 purchase price), although I am not sure how MEW stuff fully works.   Desperate?  For the easy cash-money in refinancing?   And now the whinge, the victim stuff, with prices boomed up once again by hundreds of thousands of pounds??  

In 2008 (and long before it), and now but further priced out, I just wanted a family home, at a price that had some association to two reasonably good working incomes.  Others want money money money, and BTL BTL BTL from property (with some claiming the BTLers don't think/know what they do - of course they do).

Edited July 22, 2018 by Mossie

[ftb_fml]

A sad state of affairs and while the scumbag banks / tptb / media and their "HPI forever" mantra clearly aren't blameless in all of this, the couple in question are grown-ups and made the decision to subscribe to massive, unsustainable debt of their own free will (where's Venger when you need him? :p)

I have little sympathy; they've had 10yrs of living in a house many others couldn't "afford" thanks to skyrocketing prices fuelled by greedy and irresponsible borrowing. Now it's time for them to pay for that. 

Edited July 22, 2018 by ftb_fml