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OnlyMe

High-risk Lenders Target Vulnerable

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I wonder if anyone at the FSA, BOE has the first clue about what they have done to the economy and how unhinged they have made it by encouraging nothing but speculation and gouging by banks.

Increasingly I think not.

http://observer.guardian.co.uk/cash/story/0,,1833110,00.html

High-risk lenders target vulnerable

Firms stand accused of exploiting social housing tenants' right to buy. Jill Phillip reports

The bureaux say that many such tenants cannot afford to keep up the high repayments, and subsequently become homeless and lose their right-to-buy status when their homes are repossessed

........

Shelley and her partner Craig live in a cramped two-bedroom flat in East Staffordshire, with their children aged eight and two. They pay £125 per week to a private landlord and owe more than £140,000 in accumulated debts. Three years ago they had no debt and rented a semi-detached housing association property for £50 per month.

'Our mistake was to try to buy our own home,' says Shelley.

The couple were initially sold a mortgage for £42,000 - £32,000 to buy the property and £10,000 to pay for home improvements - from a sub-prime lender. To begin with everything seemed fine but, after their second child was born, the bills started to mount and they began to use credit to budget. At this stage Shelley and Craig considered selling the house but decided against it because they would have to repay their discount.

'The lender contacted us, explaining that they knew we were experiencing financial problems and asking if we needed any help,' explains Shelley.

They were advised to remortgage and sold a second loan for £67,000. However, it was only after completion, when Shelley first saw the paperwork, that she realised the mortgage was interest-only. 'Nobody told us that, nor did they explain we needed some kind of savings plan to pay it off.'

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Edited by OnlyMe

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I've just seen an slot on the BBC News about pensioners taking out MEW and not realising how the interest builds up and the penalties involved

Yet another group of vunrable low income people who are basically borrowing to fill the growing gap between their income and prices

Not once did the BBC report mention rising inflation - the main reason WHY these people are borrowing...

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I'm not usually that sympathetic with people's self-made financial messes but after reading that piece I would say that the way they have been exploited by the lenders and lawyers is morally repugnant and criminal. However, it is telling that all their problems seem to stem from the initial pressure they felt to "own" their home. The hpi/debt economy and the mass speculation that it has spawned is a disgrace to the nation and an international embarrassment. :angry:

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I've just seen an slot on the BBC News about pensioners taking out MEW and not realising how the interest builds up and the penalties involved

Yet another group of vunrable low income people who are basically borrowing to fill the growing gap between their income and prices

Not once did the BBC report mention rising inflation - the main reason WHY these people are borrowing...

Age Concern charity shops actually sell booklets on how to release equity in their homes to suppliment them in old age, this is disgraceful as most pensioners would be encouraged to do this just because they trust the charity.

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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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