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Little Professor

Another Mse'er To Laugh At

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Just when I think im making headway it all goes pearshaped. I recieved a letter today telling me that my mortgage rate will be increasing to 10.25%

As we have appalling credit we took a offer from Kensington mortgages 3 years ago and was paying 6.5% discounted.

When I questioned them today over the phone that I hadnt heard of the bank of england changing the base rate they told me they do not follow the bank of england rate but LIBOR [London Interbank Offered Rate]

I think its just legal robbery.

I am wondering if my current mortgage has been increased as I had my flat repossessed earlier this month.

http://forums.moneysavingexpert.com/showthread.html?t=480990

Gotta love it. The increase in bond yields has taken the decisions out of the BoE's hands, rates are climbing everywhere - pushing numpties like this (who have "appalling credit" and £39,000 debt, yet somehow managed to get mortgages to buy TWO properties) over the edge :lol:

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I am wondering if my current mortgage has been increased as I had my flat repossessed earlier this month.

:lol::lol::lol:

I think there may be a smidgen of a possibility that that is the case!

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Guest Bart of Darkness
I think its just legal robbery.

Legal because of that agreement thingy you signed. You know, the one with all the tiny writing on it.

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Whilst I can't be bothered to post on MSE can anyone figure out just how they got to a rate of 10.25% as the highest variable rate Kensington do is 9.50% before additional risk loadings. The worst case can I can figure out is remortgage (+.50%) and self cert (+.50%) which would be 10.5% iirc no combination of products adds up to 10.25% :huh:

Even to get close then they must be unlimited CCJ's, unlimited arrears territory and that would have been for a deal taken out before they got repo'd. I mean just radioactive is their credit file....

http://www.kmc.co.uk/KMOnline/PDFs/AdverseProductGuide.pdf

Edited by b0rk

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http://forums.moneysavingexpert.com/showthread.html?t=480990

Gotta love it. The increase in bond yields has taken the decisions out of the BoE's hands, rates are climbing everywhere - pushing numpties like this (who have "appalling credit" and £39,000 debt, yet somehow managed to get mortgages to buy TWO properties) over the edge :lol:

This post on that page is interesting..

"Big Hugs - our mortgage is with SPML (like Kensignton) and we've just had a letter about the same thing, its only gone up about £4 but as we are on a fixed rate I think its disgusting."

So, is it true that payments for those on FIXED rates are increasing too due to the hike in bond yields last week?!?!?! :o

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Whilst I can't be bothered to post on MSE can anyone figure out just how they got to a rate of 10.25% as the highest variable rate Kensington do is 9.50% before additional risk loadings. The worst case can I can figure out is remortgage (+.50%) and self cert (+.50%) which would be 10.5% iirc no combination of products adds up to 10.25% :huh:

Even to get close then they must be unlimited CCJ's, unlimited arrears territory and that would have been for a deal taken out before they got repo'd. I mean just radioactive is their credit file....

http://www.kmc.co.uk/KMOnline/PDFs/AdverseProductGuide.pdf

love the tagline

KENSINGTON A WHOLE RANGE OF SUPPRISES

what like your mortgage bouncing upto 10.25%, meaning both your properties get reposessed :o

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Negative equity, posted in January and still trying to sell today.

http://forums.moneysavingexpert.com/showthread.html?t=479066

P.S - REALLY PANICKING NOW!!!!
On paper it sounds like a good option but what do we actually word this to the second mortgage company in these circumstances? (It sounds like "If you don't let us come to an arrangement with the £10k then we'll hand the keys back and you'll lose more - so there )
P.S - Just found the feedback about YES Loans and realised how poorly recommended they are so will have to look for another unsecured 'high risk' lender.

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The OP of that thread smells of horse sh1t to me. Questions I would like answered:

-You had a second property -a flat - that was respossesed?

-How did you manage to get 2 mortgages approved with an appalling credit record and £39k debt?

-Your mother "signed over" half a house worth £200k but you owe £107k? How did you get into negative equity? And surely if you owe money on it then she actually sold it and didnt just "sign it over"

-Where do you find a 4 bed houses in London for £200k?

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I'd like to laugh at these people but to be honest reading their tales of stupidity makes me feel a bit queasy. The responses aren't much better either:

"You could argue that it is their fault for lending when there was insufficent margin." :unsure:

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Regrettably, I also have to say this all sounds a little odd. :huh:

I was going to give the guy the benefit of doubt but after reading his latest post I'm completely bemused. 2 discount year sub prime mortgage taken out 3 years ago now variable rate yet he claims to have had a good credit history up until 18-24 months ago sorry but wtf.. The rate he's paying now and was paying then would have put him in the highest or second highest risk category product for KMC so very bad credit history e.g. a monster CCJ or arrears. :rolleyes:

Reading some of his earlier posts really contradict what he's claiming now.. flat purchased via investment company (I'd put money on inside track or similar) on a residential mortgage they arranged without a letting clause.. oh dear.

Tentent sub lent and did a bunk with the sub letters rent who trashed the place. Lost job, repaired property using CC got another tenent then went into arrears. http://forums.moneysavingexpert.com/showpo...mp;postcount=12

Not clear if new rent covered mortgage plus costs. I'd guess it didn't for him to have fallen into arrears on it, lender then repo'd it and recharged him for service charges and interest whilst it was unsold. Nice generous touch I must admit at least they didn't immediately bounce him on BTL rates and reclaim previous underpayment or pursue him for mortgage fraud.

Yet in one of his earlier posts the story is slightly different... http://forums.moneysavingexpert.com/showpo...amp;postcount=8

Hi, I actually did buy a BTL property hoping that I would I cash in if we got the olympics and after doing some research and attending a few courses and reading the books I brought the property.
What they
dont show you on these TV shows
were everyone is making money left right and centre is that Tenants can be complete pains in the !!!! and stop paying there rent. What do you do then? the Mortgage company are not interested and just want there monthy installment.

One to many episodes of property ladder me thinks.

Since buying the flat I have had the worst 3 years of my life and am now in majot debt buy borrowing and consolidating, and buying again.
I know it works
for some people and
I do intend on getting back into the property market at some point
but I will do it when I actually have a proper deposit and a Emergency fund when the tenants miss there payments.

You can tell he is a gambler, would have been better blowing the lot on red or black. :P

One item that is notable is his naivety when it came to understanding that the mortgage lender on his millstone investment wanted payment on time and in full no matter what his circumstances were it is after all a commercial loan.

Edited by b0rk

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If brains were dynamite this boy wouldn't have enough to blow his nose. :blink:

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What they dont show you on these TV shows were everyone is making money left right and centre is that Tenants can be complete pains in the !!!! and stop paying there rent. What do you do then? the Mortgage company are not interested and just want there monthy installment.

Oh, those nasty mortgage companies! What a scandal, asking you to repay your mortgage. Quick, someone write to Watchdog!!! :ph34r::lol:

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My/our debts total approx $39k so there is equity. My mother who owns the house and signed half of it across to me a few years back is now 62 and although she still works running her own nanny/childminding business I cant see her mananing to do it for much longer. I really need to get something sorted out.

Obviously idiocy runs in the family.

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This post on that page is interesting..

"Big Hugs - our mortgage is with SPML (like Kensignton) and we've just had a letter about the same thing, its only gone up about £4 but as we are on a fixed rate I think its disgusting."

So, is it true that payments for those on FIXED rates are increasing too due to the hike in bond yields last week?!?!?! :o

I've seen this before either

the main loan is on a fixed rate and when they took the mortgage they added the booking fee onto the mortgage. This fee is added on the SVR or LIBOR for subprime on a repayment basis. The payment for the main mortgage does not change, but the small additional mortgage does.

or

the mortgage payment includes wither buildings an contents or ASU insurance and this premium has been increased.

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I think these stories are really sad but unfortunately this is a necessary part of a HPC. These people have taken on debt that they cannot afford, have driven prices to a stupid level and now it is time to pay up.

It is these people at the margins suffering that will bring down houseprices. It was never going to end well :(

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I think its silly to tarnish the entire MSE site. For every "Ive screwed up post" theres another outlining to pay off a mortgage in 3 years etc. I think we are all responsible for our own actions, if you want to be paying off your mortgage right now then you could.

Id suggest 200k gets you a 2 or 3 bed terrace or semi in my zone 6 town, you go cheaper if you move away from the station though. Of course most of us want the transport - else you'd have to buy a car! eek - there goes ya deposit straight away!

:lol:

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I've seen this before either

the main loan is on a fixed rate and when they took the mortgage they added the booking fee onto the mortgage. This fee is added on the SVR or LIBOR for subprime on a repayment basis. The payment for the main mortgage does not change, but the small additional mortgage does.

or

the mortgage payment includes wither buildings an contents or ASU insurance and this premium has been increased.

Isn't there some kind of insurance premium they add on to subprime mortgages too? That could well be on a variable rate.

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I think its silly to tarnish the entire MSE site. For every "Ive screwed up post" theres another outlining to pay off a mortgage in 3 years etc. I think we are all responsible for our own actions, if you want to be paying off your mortgage right now then you could.

Id suggest 200k gets you a 2 or 3 bed terrace or semi in my zone 6 town, you go cheaper if you move away from the station though. Of course most of us want the transport - else you'd have to buy a car! eek - there goes ya deposit straight away!

:lol:

Maybe you should tell that to these guys:

http://www.askaboutmoney.com/showthread.php?t=56928

http://www.askaboutmoney.com/showthread.php?t=56995

:lol::lol::lol::lol:

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I was going to give the guy the benefit of doubt but after reading his latest post I'm completely bemused. 2 discount year sub prime mortgage taken out 3 years ago now variable rate yet he claims to have had a good credit history up until 18-24 months ago sorry but wtf.. The rate he's paying now and was paying then would have put him in the highest or second highest risk category product for KMC so very bad credit history e.g. a monster CCJ or arrears. :rolleyes:

Reading some of his earlier posts really contradict what he's claiming now.. flat purchased via investment company (I'd put money on inside track or similar) on a residential mortgage they arranged without a letting clause.. oh dear.

Presumably if he bought at one of their courses/seminars he would have been stitched up on the mortgage rate as well as the purchase price.

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