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Times Issue A 10 Step Guide To Avoid Going Skint In H P C

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http://business.timesonline.co.uk/tol/busi...icle2398698.ece

Violent crime has doubled in the CCTV decadeHeather Brooke

Ten tips for avoiding a mortgage crisis

The courts have been seeing an increase in repossession cases. A judge tells you how to avoid being one of them

Stephen "Steve" Gerlis

Repossessions on mortgaged property are up by a third on last year, which was two-thirds up on the year before. Increases in mortgage interest and the end of some fixed-rate agreements means that the harsh reality of home ownership is coming home to hard-pressed borrowers. We in the courts, where repossessions are sought, are at the sharp end.
Having dealt with countless possession cases over the past quarter of a century, including the infamous meltdowns in 1988-89, I hope I can offer some useful tips for sailing in these rough seas.
1. Don’t borrow too much in the first place
2. Allow for the fact that interest rates may go up
3. Allow for the fact that your income may go down
4. Prioritise
5. Fixed rate agreements come to an end at some point
6. It’s no good blaming the lenders
7. It’s no good blaming the courts
8. Get rid of the millstone
9. Do not sublet without permission
10. Speak to the lenders

I have an eleventh one which really makes all of the above tautologous remarks redundant:

11. Assume a seated position and place your head between your legs and kiss your sorry ass goodbye. :lol::lol::lol:

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Probably not too many Times readers affected - although having just typed that I suspect that the Great Mortgage Mania preceding GC2 has affected just about everyone's minds.

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Sound advice.

The problem though is that most people can't even add up the change in their pocket.

They will therefore (and not unreasonably imo) tend to believe that when they fill in a mortgage/credit card/personal loan application, that the person lending them the money, being a "professional" (ok salesman) has a much more informed understanding of finance and affordability/prudent lending than the applicant (who let's not forget can't add up the change in their pocket).

So whilst it might be amusing to scoff at people with little financial awareness getting themselves into bother, it is the primary responsibility of the professional lender to ensure people do not take undue risks. They have consistently failed to do this over the past 20 years, and will continue to take advantage of people until they are stopped by regulation.

It is no different from the private pensions and endowment mortgage mis-selling. Banks are incapable of self-regulation and the FSA is largely incapable of policing them. Therein lies the fundamental issue.

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The reason the banks have no interest in whether you can pay or not, is because, even though they provide a service to you (the loan) and then charge you for this service (the interest), all the risk is passed to you. As the risk is, in my opionion shared, then the bank SHOULD have to bear some of the loss in the event of the venture (The house purchase) turing to rats.

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1. Don’t borrow too much in the first place (too late for that)

2. Allow for the fact that interest rates may go up (Can't do that IO anyway can't afford any higher)

3. Allow for the fact that your income may go down (That's fine I'd just return the keys and walk debt free)

4. Prioritise (done so 3 BTL all on IO 105% mortgages)

5. Fixed rate agreements come to an end at some point (My lender never mentioned that!)

6. It’s no good blaming the lenders (why not? they offered the money in the first place)

7. It’s no good blaming the courts (I wouldn't dare that instead blame everyone else & everything else)

8. Get rid of the millstone (Yes sir)

9. Do not sublet without permission (Too late 4 poles in the spare room already)

10. Speak to the lenders (I will when I take them to court to sue)

I have an eleventh one which really makes all of the above tautologous remarks redundant:

11. Assume a seated position and place your head between your legs and kiss your sorry ass goodbye. :lol::lol::lol:(BEST ADVICE OF ALL :lol: )

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How ironic, the Times should have been on the top shelf, the amount of property porn it's peddled over the last 5 years.

From, HPI is the answer to economic woes Kaletsky, to the Bricks and Mortar supplement and the uber BTL pornstar Rosie Millard - the paper has championed the debt lifestyle like no other.

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