GAL BEAR Posted February 23, 2006 Share Posted February 23, 2006 (edited) Its starting to happen! hard working people who have been 'conned' by the VI's are in danger of losing their homes! This is the first person I personally know who this is happening to. She bought last year. She has now told me she is really in a state financially trying to pay everything since she bought a flat last year. She is now using her credit card to pay her bils. She has run up an overdraft and the bank have been on to her moaning that she will have to get a loan to pay it back ! Only earns about £17,000 a year. (That is just a rought guess I'm not 100 % sure) (she works in my office) She is 28 yrs old. I told her over and over not to buy last year but she would not listen (I posted on here about it at the time). Other people in the office kept telling me to shut up and 'she must get on the property ladder at all costs"! In the end I just gave up. She has done this half buy/half rent thing. Her combined Mortage/rent payments are about £600 a month. She only takes home about £950 a month. She then has to pay all her other bills as well on top. She has now taken a Saturday job but is still struggling. Her sister has been 'bailing her out' for months now when she can't afford to pay for things. She is not a spendthrift (you never see her in New clothes, she doesn't go out much she she bought this flat, she had tried to be careful). I wonder if other people in the office would feel guilty if they new. Don't suppose they would. They would just say "She should not have bought if she could not afford it, yet a year ago that is not what they said!" This government and all the vested interests have a lot to answer for, but of course they never will :angry: Oh yes, its an [b]INTEREST ONLY [/b] mortgage !!! Edited February 23, 2006 by GAL BEAR Quote Link to comment Share on other sites More sharing options...
Waiting Patiently Posted February 23, 2006 Share Posted February 23, 2006 Watch the repo's start to shoot up. It's like 89/90 all over again. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted February 23, 2006 Share Posted February 23, 2006 It is going to be a very sad and sorry state of affairs for many, I'm afraid. That is why it is important to respect all sides of the argument. I'm up to 'I TOLD Y' on the banner. Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted February 23, 2006 Share Posted February 23, 2006 Its starting to happen! hard working people who have been 'conned' by the VI's are in danger of losing their homes! This is the first person I personally know who this is happening to. She bought last year. She has now told me she is really in a state financially trying to pay everything since she bought a flat last year. She is now using her credit card to pay her bils. She has run up an overdraft and the bank have been on to her moaning that she will have to get a loan to pay it back ! Only earns about £17,000 a year. (That is just a rought guess I'm not 100 % sure) (she works in my office) She is 28 yrs old. I told her over and over not to buy last year but she would not listen (I posted on here about it at the time). Other people in the office kept telling me to shut up and 'she must get on the property ladder at all costs"! In the end I just gave up. She has done this half buy/half rent thing. Her combined Mortage/rent payments are about £600 a month. She only takes home about £950 a month. She then has to pay all her other bills as well on top. She has now taken a Saturday job but is still struggling. Her sister has been 'bailing her out' for months now when she can't afford to pay for things. She is not a spendthrift (you never see her in New clothes, she doesn't go out much she she bought this flat, she had tried to be careful). I wonder if other people in the office would feel guilty if they new. Don't suppose they would. They would just say "She should not have bought if she could not afford it, yet a year ago that is not what they said!" This government and all the vested interests have a lot to answer for, but of course they never will :angry: Oh yes, its an [b]INTEREST ONLY [/b] mortgage !!! GalBear, how big is her mortgage? Quote Link to comment Share on other sites More sharing options...
Goat Posted February 23, 2006 Share Posted February 23, 2006 She needs to sell now rather than wait to be repossessed & move back into rented. Quote Link to comment Share on other sites More sharing options...
Pluto Posted February 23, 2006 Share Posted February 23, 2006 This government and all the vested interests have a lot to answer for, but of course they never will :angry: Oh yes, its an [b]INTEREST ONLY [/b] mortgage !!! Why have the vested interests and government to blame for your friends financial problems? She was not forced to buy anything. She wanted a flat and she got one. Now she has to pay. It is very simple. The reason we have such a mess right now is not the fault of the government or the vested interests, it's the fault of people like your friend buying property at inflated prices with funds they do not have. Sorry, but the truth is the truth. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 23, 2006 Share Posted February 23, 2006 half rent/buy? So how does that work with evicting her? Can she pay the rent half and not the mortgage half? Quote Link to comment Share on other sites More sharing options...
BillyShears Posted February 23, 2006 Share Posted February 23, 2006 She has done this half buy/half rent thing. Her combined Mortage/rent payments are about £600 a month. She only takes home about £950 a month. She then has to pay all her other bills as well on top. She has now taken a Saturday job but is still struggling. Her sister has been 'bailing her out' for months now when she can't afford to pay for things. ... deleted ... Oh yes, its an [b]INTEREST ONLY [/b] mortgage !!! This is mis-selling. Whoever lent her the money is criminally negligent. I find it utterly appalling that anyone could get away with doing this. There must have been banks and lawyers and who knows who that knew what was happening and let it happen. Billy Shears Quote Link to comment Share on other sites More sharing options...
AteMoose Posted February 23, 2006 Share Posted February 23, 2006 (edited) a lad in my office bought a small flat last year, he always brings in food and seems to have cut back. One of the guys who was telling him he should buy last year, dopped a snide comment today saying that he shoulnt have bought if he couldnt afford to. He bought a 3br in 97/8 for 50kish, and has a small morgage. Edited February 23, 2006 by moosetea Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted February 23, 2006 Share Posted February 23, 2006 Why have the vested interests and government to blame for your friends financial problems? She was not forced to buy anything. She wanted a flat and she got one. Now she has to pay. It is very simple. The reason we have such a mess right now is not the fault of the government or the vested interests, it's the fault of people like your friend buying property at inflated prices with funds they do not have. Sorry, but the truth is the truth. She can't say she wasnt warned! Quote Link to comment Share on other sites More sharing options...
mustrum_ridcully Posted February 23, 2006 Share Posted February 23, 2006 (edited) You almost have to feel sorry for these sheeple, as they like anyone at the bottom of a pyramid are going to get shafted good and proper. But also there is the I told you so aspect or rather why the heck didn't you sit down and do the bleedin' sums. Well once this problem becomes common knowledge at your place of work you should have a bit of a go at your workmates for how they acted. It's a good job for Blair that gun ownership is limited in the UK, otherwise we could end-up with a repeat of what happened in Albania in the early 1990's. In case anyone doesn't remember there was massive pyramid scam in Albania which collapsed big time and resulted in angry mobs rampaging through the streets with AK-47s - it might even of bought the goverment down. Edited February 23, 2006 by mustrum_ridcully Quote Link to comment Share on other sites More sharing options...
eurows Posted February 23, 2006 Share Posted February 23, 2006 It would also be interesting to know what overdraft the bank would give her. It is financial suicide paying your mortgage payments on cc. Is this not classed as cash and as such not only attracts a higher rate of interest but payments you then make on the card are only applied to the cash element when the rest of the card has been cleared first. Quote Link to comment Share on other sites More sharing options...
shermanator Posted February 23, 2006 Share Posted February 23, 2006 Its starting to happen! hard working people who have been 'conned' by the VI's are in danger of losing their homes! This is the first person I personally know who this is happening to. She bought last year. She has now told me she is really in a state financially trying to pay everything since she bought a flat last year. She is now using her credit card to pay her bils. She has run up an overdraft and the bank have been on to her moaning that she will have to get a loan to pay it back ! Only earns about £17,000 a year. (That is just a rought guess I'm not 100 % sure) (she works in my office) She is 28 yrs old. I told her over and over not to buy last year but she would not listen (I posted on here about it at the time). Other people in the office kept telling me to shut up and 'she must get on the property ladder at all costs"! In the end I just gave up. She has done this half buy/half rent thing. Her combined Mortage/rent payments are about £600 a month. She only takes home about £950 a month. She then has to pay all her other bills as well on top. She has now taken a Saturday job but is still struggling. Her sister has been 'bailing her out' for months now when she can't afford to pay for things. She is not a spendthrift (you never see her in New clothes, she doesn't go out much she she bought this flat, she had tried to be careful). I wonder if other people in the office would feel guilty if they new. Don't suppose they would. They would just say "She should not have bought if she could not afford it, yet a year ago that is not what they said!" This government and all the vested interests have a lot to answer for, but of course they never will :angry: Oh yes, its an [b]INTEREST ONLY [/b] mortgage !!! Holy ****! The fallout from our decade of debt and house price madness is happening now. No matter what the official GDP figures are, I believe we are in a recession. Your friend's case will be repeated many thousands of times over. She needs to sell up, get out AND wipe the slate clean. Borrowing on credit is making things worse. She didn't listen to you last year, try again now and tell her "friends" to **** off, if they won't let you. Quote Link to comment Share on other sites More sharing options...
beenhearingthisforyears Posted February 23, 2006 Share Posted February 23, 2006 (edited) You almost have to feel sorry for these sheeple, as they like anyone at the bottom of a pyramid are going to get shafted good and proper. But also there is the I told you so aspect or rather why the heck didn't you sit down and do the bleedin' sums. Well once this problem becomes common knowledge at your place of work you should have a bit of a go at your workmates for how they acted. It's a good job for Blair that gun ownership is limited in the UK, otherwise we could end-up with a repeat of what happened in Albania in the early 1990's. In case anyone doesn't remember there was massive pyramid scam in Albania which collapsed big time and resulted in angry mobs rampaging through the streets with AK-47s - it might even of bought the goverment down. Horrible to hear this. Just hope she can get good advice. Tell her to speak to her mortgage lender asap and the organisation who set up the scheme. if you know her well sit her down and work out a plan of action. most people in this situation bury their heads in the sand hoping problem will go away. It doesn't and normally gets worse....and that is when people loose their homes.... And in this care how the hell did she get a mortgage with only £80 per week approx to live on after her rent/mortgage payments..... Edited February 23, 2006 by beenhearingthisforyears Quote Link to comment Share on other sites More sharing options...
munimula Posted February 23, 2006 Share Posted February 23, 2006 Her combined Mortage/rent payments are about £600 a month. She only takes home about £950 a month. Oh yes, its an ]INTEREST ONLY mortgage !!! This is absolute stupidity. How can someone taking home £950 think that they can afford £600 rent/mortgage before all other costs. This kind of stupidity deserves punishment because it's stupid people like this that are sustaining the bubble and preventing things returning to normal so that the rest of us can move on. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 23, 2006 Share Posted February 23, 2006 But also there is the I told you so aspect or rather why the heck didn't you sit down and do the bleedin' sums. They do, with their friendly mortgage broker, EA, lender, builder or any other two bit spiv who makes commission from the sale. We have witnessed a total breakdown in lending criteria combined with unprecendented spin to encourage people to "get on the ladder" by whatever means are possibe and to lie and deceive themselves as to true overall costs. Quote Link to comment Share on other sites More sharing options...
OurDayWillCome Posted February 23, 2006 Share Posted February 23, 2006 Why have the vested interests and government to blame for your friends financial problems? She was not forced to buy anything. She wanted a flat and she got one. Now she has to pay. It is very simple. The reason we have such a mess right now is not the fault of the government or the vested interests, it's the fault of people like your friend buying property at inflated prices with funds they do not have. Sorry, but the truth is the truth. It's true that no one is forced to buy anything but it's also true that this government is responsible for misleading the public. It was only last year that they had massive billboard posters reminding people that under the tories many people suffered repossesion but under Labour the economy was in 'safe hands' suggesting that repossesions wouldn't happen again. Incidentally the billboards put up around Longbridge got taken down when Rover collapsed! Ouch!!! Quote Link to comment Share on other sites More sharing options...
GCS15 Posted February 23, 2006 Share Posted February 23, 2006 a lad in my office bought a small flat last year, he always brings in food and seems to have cut back. One of the guys who was telling him he should buy last year, dopped a snide comment today saying that he shoulnt have bought if he couldnt afford to. He bought a 3br in 97/8 for 50kish, and has a small morgage. Sounds like someone is asking to be pushed down the stairs at work Quote Link to comment Share on other sites More sharing options...
munimula Posted February 23, 2006 Share Posted February 23, 2006 (edited) This is mis-selling. Whoever lent her the money is criminally negligent. IF she can't do some basic math and work out what she can afford then it is she who is negligent I mean how hard is 950-600-50(council tax)-50(bills)-100(food)-150(car)-100(entertainment) = -100 and that's without hols, clothes, unforeseen bills etc. Total stupidity Edited February 23, 2006 by munimula Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 23, 2006 Share Posted February 23, 2006 munimula OK, she is no doubt negligent, the others are complicit. Don't forget it is the young and inexpereinced that are the ones that are being targetted and for good reason, they are the ones that are most likely to be hoodwinked. What are the penalities for misrepresentation in the wider fianancial sphere? Quite severe. Quote Link to comment Share on other sites More sharing options...
mustrum_ridcully Posted February 23, 2006 Share Posted February 23, 2006 But also there is the I told you so aspect or rather why the heck didn't you sit down and do the bleedin' sums. They do, with their friendly mortgage broker, EA, lender, builder or any other two bit spiv who makes commission from the sale. We have witnessed a total breakdown in lending criteria combined with unprecendented spin to encourage people to "get on the ladder" by whatever means are possibe and to lie and deceive themselves as to true overall costs. Yeah that's right, unfortunately, they do it the "easy way" with the "nice friendly mortgage broker" instead of sitting down for an hour with pencil and paper and doing the sums themselves. Do they even consider that the person is trying to sell them something... Quote Link to comment Share on other sites More sharing options...
beenhearingthisforyears Posted February 23, 2006 Share Posted February 23, 2006 (edited) IF she can't do some basic math and work out what she can afford then it is she who is negligent I just find it incredible that no-one stopped her!! I remember buying my 1st property and chatting to friends/family about the costs etc, getting their advice/opinions. Now people spend longer considering which tv ready-meal they are going to heat up in the microwave......than they give to the life changing decision to buy a property...... Edited February 23, 2006 by beenhearingthisforyears Quote Link to comment Share on other sites More sharing options...
OurDayWillCome Posted February 23, 2006 Share Posted February 23, 2006 This is absolute stupidity. How can someone taking home £950 think that they can afford £600 rent/mortgage before all other costs. This kind of stupidity deserves punishment because it's stupid people like this that are sustaining the bubble and preventing things returning to normal so that the rest of us can move on. There's plenty of stupidity out there. I had an employee who took home £1,300 a month and had mortgage repayments of £900 per month. He had a perfectly good home before upgrading to something he couldn't afford. Having a wife who didn't bring in any income and two young children you would expect him to be a little more responsible with his finances. Quote Link to comment Share on other sites More sharing options...
BillyShears Posted February 23, 2006 Share Posted February 23, 2006 IF she can't do some basic math and work out what she can afford then it is she who is negligent Yes, she is negligent, but so is the bank and the others involved in the transaction. If I go to a doctors and ask for drugs to kill myself, I won't get them. If I go to a taxi driver and offer to pay him/her to run me over, it won't happen. In either case if the transaction went ahead, the doctor or taxi driver would be blamed. When she went to a bank and asked for loans totalling to a life-destroying amount of debt, she got them. Billy Shears Quote Link to comment Share on other sites More sharing options...
karhu Posted February 23, 2006 Share Posted February 23, 2006 She needs to sell now rather than wait to be repossessed & move back into rented. How can she sell. She'd probably have to take a 50K cut to sell it fast and then she'd probably be in negative equity. Quote Link to comment Share on other sites More sharing options...
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