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I have a friend who i have known for some 29 years and he has managed to get himself in big cash trouble.

Bought house with wife for £35000

Mewed upto 100k total.

Wife left him.

Had to pay wife 40k

Got mortgage with advice? from financial adviser to borrow 130k over 33 years!!!!!!!

His take home pay is £1100 per month and he has two kids so he has to pay the CSA and he is living at his parents as he cant afford to live in the house he is actually buying! So the property just sits there empty whilst he pays £700 month mortgage on it. I know this is stupid but he keeps telling me it will be alright as house prices will keep rising etc etc

Has anyone got any suggestions on how i can convince him just to sell it and get himself back on track.

Oh and suprise suprise the financial adviser told him to lie on his mortgage application about his wages :(

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Guest Guy_Montag

My advice for the man is to emigrate without a forwarding address. :ph34r:

Sometimes it really does seem better to shrug your shoulders & leave.

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1. sell the house

or

2. rent the house out at least!

or

3. run away!

or

4. Bankruptcy

Decisions....

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Guest Baffled_by_it_all

I'd go bankrupt, there's no stigma attached to it anymore. Maybe he shouldn't have got greedy and MEW'd it up in the first place.

What did they buy? Loads of tat?

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I have a friend who i have known for some 29 years and he has managed to get himself in big cash trouble.

Bought house with wife for £35000 Mewed upto 100k total. Wife left him. Had to pay wife 40k Got mortgage with advice? from financial adviser to borrow 130k over 33 years!!!!!!! His take home pay is £1100 per month and he has two kids so he has to pay the CSA and he is living at his parents as he cant afford to live in the house he is actually buying! So the property just sits there empty whilst he pays £700 month mortgage on it. I know this is stupid but he keeps telling me it will be alright as house prices will keep rising etc etc Has anyone got any suggestions on how i can convince him just to sell it and get himself back on track. Oh and suprise suprise the financial adviser told him to lie on his mortgage application about his wages :(

I suggest that you your friend goes to the citizens advice bureau.

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I have a friend who i have known for some 29 years and he has managed to get himself in big cash trouble.

Bought house with wife for £35000

Mewed upto 100k total.

Wife left him.

Had to pay wife 40k

Got mortgage with advice? from financial adviser to borrow 130k over 33 years!!!!!!!

His take home pay is £1100 per month and he has two kids so he has to pay the CSA and he is living at his parents as he cant afford to live in the house he is actually buying! So the property just sits there empty whilst he pays £700 month mortgage on it. I know this is stupid but he keeps telling me it will be alright as house prices will keep rising etc etc

Has anyone got any suggestions on how i can convince him just to sell it and get himself back on track.

Oh and suprise suprise the financial adviser told him to lie on his mortgage application about his wages :(

My take home pay is £1,100 a month so I can relate to this guy a little, though wages are where the comparison ends. On £1,100 a month I consider none of what he is doing to be remotely affordable, so he needs to change his circumstances. My advice would be at best to flog the house and at worst rent it out. By the time a degree of normality has returned to house prices he may well be able to buy something decent, but trying to sustain a potentially depreciating asset on which he has such a huge debt is crazy. I'd also advise him to keep a hold of the details oif the IFA who told him to do what he has. I suspect when the sh*t hits the fan there will be cause for mis-selling cases for many who have been told borrow up to the eyeballs to buy overpriced houses in a potentially IR-raising environment.

Incidentally, what was the £100K of MEW for? Has he bought anything that he can sell?

Edited by Bingley Bloke

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I would just like to add this person in question is not me, the author!!!!!!!

He has nothing to show for the money borrowed, not even a car. To this day im still not quite sure what they managed to spend all the money on, but i do recall a dog at £500 which chewed up £1500 worth of furniture, shortly after this even the dog was given away to his parents.

He offered to rent it to me for 350 month (3 bed bungalow) but it isnt in the best condition or location so i'm not really that keen, though it obviously is a bargain at this price and he doesnt fancy going through an agency because he didn't want a load of scummers living there.

I think an interest rate rise of 2% would finish him off for good. Maybe it would be a good thing, maybe it wouldn't.

Hopefully sense will come to him at last :)

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I would just like to add this person in question is not me, the author!!!!!!!

He has nothing to show for the money borrowed, not even a car. To this day im still not quite sure what they managed to spend all the money on, but i do recall a dog at £500 which chewed up £1500 worth of furniture, shortly after this even the dog was given away to his parents.

He offered to rent it to me for 350 month (3 bed bungalow) but it isnt in the best condition or location so i'm not really that keen, though it obviously is a bargain at this price and he doesnt fancy going through an agency because he didn't want a load of scummers living there.

I think an interest rate rise of 2% would finish him off for good. Maybe it would be a good thing, maybe it wouldn't.

Hopefully sense will come to him at last :)

The idea of renting your your friend's place out seems quite a good one.

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As someone has already said you your friend should get yourself themself down to the CAB pronto as they specialise in cases such as yours your firends.

Edited by shakerbaby

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The idea of renting your your friend's place out seems quite a good one.

I like your use of strikethroughs on both of your posts

As everyone is using these lovely things, i thought that i would join the party.............. what do you think

Edited by Nick T

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I'd do your mate and favour and rent his property for £350 a month no matter what the location. Quids in for you and your mate keeps his head above water for a while longer.

Edited by Swipe

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He's got to rent it out, the losses would be ofset against his tax code wouldn't it ? (I don't know this but I bet somebody on here would).

Has he had a valuation ?

No

if he was renting it out at market rates and making a loss he would be able to set that loss off against profits :lol: from other rental properties he owned. He wouldn't be able to set his loss off against his other income - such as employment income.

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I don't think anyone should be telling this guy to go to the CAB, they are stretched enough as it is what with all the twits out there who only have themselves to blame - let 'em suffer :ph34r:

BTW I am waiting for advice / help from the CAB, on ways in which our family can stay affloat and get a little bit of help with our daughter's nursery fees.... Because we are just staying out of debt and not upto our eyeballs in it the CAB are not really interested - How f*cking sh!t is that!

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Guest Winners and Losers

My advice for the man is to emigrate without a forwarding address. :ph34r:

Who would ever do a thing like that? :unsure:

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I don't think anyone should be telling this guy to go to the CAB, they are stretched enough as it is what with all the twits out there who only have themselves to blame - let 'em suffer :ph34r:

BTW I am waiting for advice / help from the CAB, on ways in which our family can stay affloat and get a little bit of help with our daughter's nursery fees.... Because we are just staying out of debt and not upto our eyeballs in it the CAB are not really interested - How f*cking sh!t is that!

I wouldn't dream of encouraging this guy to go to the CAB. It's his 'friend' (wink wink) who needs to go.

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I wouldn't dream of encouraging this guy to go to the CAB. It's his 'friend' (wink wink) who needs to go.

But my point Dog is that the CAB weren't just setup to sort out people who get into irriversable debt, but it would appear there are so many of these tossers that the CAB are struggleing to cope, and not prioritising other cases that in my opinion are more deserving :ph34r:

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A nice representative story of the foundation upon which Gordon "Mirace Economy" Brown's policies have been built. From individuals to the nation itself, it has been wealth based on borrowing which works until someone wants to be paid back. As Mervyn said, house prices are just opinion whereas the money you borrowed is reality.

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Eh, why so judgemental about the poster and/or his friend?

The guy in question has enough on his plate, losing your family like that is a bummer. Maybe the wife is the guilty one here, the 100k could well have gone onto 'saving' the marriage... :o

And, what does it matter if the poster or his friend are in this position? So what if he maybe doesn't want to admit anonymously to the world that he messed up royally -- it doesn't change the story. So quit lookin' petty and mean :P

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But my point Dog is that the CAB weren't just setup to sort out people who get into irriversable debt, but it would appear there are so many of these tossers that the CAB are struggleing to cope, and not prioritising other cases that in my opinion are more deserving :ph34r:

Very fair point. They made their bed. Perhaps they should lie in it.

Edited by dog

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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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