Realistbear Posted October 6, 2007 Share Posted October 6, 2007 http://business.timesonline.co.uk/tol/busi...icle2597635.ece From The TimesOctober 6, 2007 We’ll never pay off the mortgage Mark Atherton helps a couple who have stretched their finances to get on the property ladder Isabelle Campbell and her husband, Jason, face a dilemna common to many young couples. Both are in good jobs, in accountancy and teaching respectively, and their joint income is a healthy £60,000 a year. But a combination of Isabelle’s debts from her student days and the couple’s scramble to get on the property ladder has left their finances stretched. Isabelle, 23, says: “We want to have children but cannot see how we would be able to afford it.” The biggest hole in their budget is the monthly payment on their £190,000 interest-only mortgage with Scottish Widows. Their two-year deal, taken out in January and fixed at 5.74 per cent, takes £900 out of their joint net monthly income of approximately £3,500. What’s more, Isabelle and Jason, 34, had to take out a 100 per cent mortgage to secure their two-bedroom flat on a riverside development in Woolwich, in southeast London, now worth an estimated £225,000. Isabelle says: “My biggest concern is how we are going to pay off our mortgage. It horrifies me to think that at the end of the mortgage’s 25-year term we could still owe £190,000 .” Cue: evil genius (Gordon) laugh enhanced with echo effect at the end. Quote Link to comment Share on other sites More sharing options...
Fergie Posted October 6, 2007 Share Posted October 6, 2007 he biggest hole in their budget is the monthly payment on their £190,000 interest-only mortgage with Scottish Widows. Their two-year deal, taken out in January and fixed at 5.74 per cent, takes £900 out of their joint net monthly income of approximately £3,500. ffs. Why do people think this is any better than renting? I mean, sure, if HPI carries on as it has been going, you'll at least be "on the ladder". But if it falls, you're royally bankrupt. That risk is just stupid. Really, if you can only afford IO, then rent and stay free. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 6, 2007 Share Posted October 6, 2007 (edited) Hope they are not relying on the Land Registry stats for their 225K valuation.Most of these developments have been sold with cashbacks to BTLers,Land Registry value 225K real value after cashback to bulk buyers perhaps 180K.My guess they are deep in negative equity s**t. Edited October 6, 2007 by crashmonitor Quote Link to comment Share on other sites More sharing options...
dog Posted October 6, 2007 Share Posted October 6, 2007 Two generations ago, mortgages was described as millstones. We seem to be back where we started. Quote Link to comment Share on other sites More sharing options...
Scarecrow Posted October 6, 2007 Share Posted October 6, 2007 She and Jason are keen to start saving and have £2,000 in a cash Isa, but most of this will go towards paying off a planned Christmas holiday to Thailand. They are uncertain whether to keep saving £500 a month in an Isa or to use the money to pay down Isabelle’s debts. She has a student loan of £12,000, an interest-free loan of £5,500 from work and £500 from her parents, a £1,300 debt on her credit card and a £1,000 interest-free overdraft on her student current account. “I tend to max this each month,” she says. Isabelle adds: “The interest rate on my credit card is greater than I earn on my Isa, but the other loans are interest-free. Should I pay them all off before I save any more, or should I keep up the savings habit?” The couple’s only long-term savings is the £190 a month that Jason contributes to his teacher’s pension. Isabelle has not signed up for the stakeholder scheme offered by her employer because cash is so tight. This just makes me so angry! This is a couple who are rich in comparison to many, and it still isn't enough for them. She doesn't even realise that her student loan isn't interest free. People like this deserve to be caught out. Quote Link to comment Share on other sites More sharing options...
laurejon Posted October 6, 2007 Share Posted October 6, 2007 It beggars belief that a working couple believe that they will have children. Its like something out of the old Tory days when young couples bought a home and started a family on a single wage. People with these old fashioned views are just laughable, we have progressed now with the introduction of contraception where a couple who are working do not have children, as it is the job of the underclass to provide the nations future talent. It is a complete and utter waste of resources, when the state provided an education to a female at taxpayers expense, then they just want to throw it all away and start a family. Quote Link to comment Share on other sites More sharing options...
hankdd Posted October 6, 2007 Share Posted October 6, 2007 http://business.timesonline.co.uk/tol/busi...icle2597635.eceFrom The TimesOctober 6, 2007 We’ll never pay off the mortgage Mark Atherton helps a couple who have stretched their finances to get on the property ladder Isabelle says: “My biggest concern is how we are going to pay off our mortgage. It horrifies me to think that at the end of the mortgage’s 25-year term we could still owe £190,000 .” Cue: evil genius (Gordon) laugh enhanced with echo effect at the end. It horrifies to think an accountant and a teacher have just figured this out. She 23 he 34 methinks she will bail out when he hits 40 anyway, bedstit beckons. Quote Link to comment Share on other sites More sharing options...
Scarecrow Posted October 6, 2007 Share Posted October 6, 2007 It horrifies to think an accountant and a teacher have just figured this out. She 23 he 34 methinks she will bail out when he hits 40 anyway, bedstit beckons. If he was wise, he'd dump her - she's the one with debt and no pension, not him. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 6, 2007 Share Posted October 6, 2007 (edited) This just makes me so angry! This is a couple who are rich in comparison to many, and it still isn't enough for them. She doesn't even realise that her student loan isn't interest free. People like this deserve to be caught out. Wasn't she the accountant,now a reception class school teacher for the rising fives you would expect a complete retard. Edited October 6, 2007 by crashmonitor Quote Link to comment Share on other sites More sharing options...
EmpiricalBear Posted October 6, 2007 Share Posted October 6, 2007 This is plain weird. £900 out of £3500 odd per month is nothing to worry about. Why don't they switch to part repayment say at £1300 per month? No problem. Just stop going out on the booze as often and cancel the Sky subscription and the aspirational holidays. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 6, 2007 Share Posted October 6, 2007 what a pair of tossers cant live on £2400 A MONTH after the mortgage WTF are they spending on???? their lives were out of control BEFORE they got the mortgage Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 6, 2007 Share Posted October 6, 2007 what a pair of tosserscant live on £2400 A MONTH after the mortgage WTF are they spending on???? their lives were out of control BEFORE they got the mortgage Wonder what sort of accountant she is.Budget management in the NHS perhaps? Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted October 6, 2007 Share Posted October 6, 2007 This is plain weird. £900 out of £3500 odd per month is nothing to worry about. Why don't they switch to part repayment say at £1300 per month? No problem. Just stop going out on the booze as often and cancel the Sky subscription and the aspirational holidays. New cars on HPI too probably. Seems very very dim to be trying to save money whilst servicing CC debt. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 6, 2007 Share Posted October 6, 2007 Wonder what sort of accountant she is.Budget management in the NHS perhaps? they probably have to get their food from a "preferred supplier" Fortnams probably. More to the point though, it is insanity to lend to a couple such a sum when it is clear that in the nature of things they are likely to reduce to one income while the mum has sprogs. There should be guidelines- oh yeah, there used to be, but not inthis new paradigm/miracle economy Quote Link to comment Share on other sites More sharing options...
slurms mackenzie Posted October 6, 2007 Share Posted October 6, 2007 what a pair of tosserscant live on £2400 A MONTH after the mortgage WTF are they spending on???? their lives were out of control BEFORE they got the mortgage wow i thought it and you typed it. well done! Quote Link to comment Share on other sites More sharing options...
IDN Posted October 6, 2007 Share Posted October 6, 2007 This is plain weird. £900 out of £3500 odd per month is nothing to worry about. Why don't they switch to part repayment say at £1300 per month? No problem. Just stop going out on the booze as often and cancel the Sky subscription and the aspirational holidays. yep- they're fookin over-reacting they can easily afford 1300 from 3500 joint income- Quote Link to comment Share on other sites More sharing options...
IDN Posted October 6, 2007 Share Posted October 6, 2007 ffs. Why do people think this is any better than renting? I mean, sure, if HPI carries on as it has been going, you'll at least be "on the ladder". But if it falls, you're royally bankrupt. That risk is just stupid. Really, if you can only afford IO, then rent and stay free. renting wouldnt be a whole lot cheaper thats why! eg they're paying £900 a month IO for a 2 bed in south london renting a 2 bed in south london would cost you around 700+- so they're spending an extra 200 but they know they have a home rather than borowwing someone else's place i know they have to pay the mortgage off- but in the above case they can easily afford the repayments (£1300 from £3500 joint income) renting is second choice- lets not kid ourselves over that one Quote Link to comment Share on other sites More sharing options...
headmelter Posted October 6, 2007 Share Posted October 6, 2007 It beggars belief that a working couple believe that they will have children. Its like something out of the old Tory days when young couples bought a home and started a family on a single wage.People with these old fashioned views are just laughable, we have progressed now with the introduction of contraception where a couple who are working do not have children, as it is the job of the underclass to provide the nations future talent. It is a complete and utter waste of resources, when the state provided an education to a female at taxpayers expense, then they just want to throw it all away and start a family. Imagine Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 6, 2007 Share Posted October 6, 2007 renting wouldnt be a whole lot cheaper thats why!eg they're paying £900 a month IO for a 2 bed in south london renting a 2 bed in south london would cost you around 700+- so they're spending an extra 200 but they know they have a home rather than borowwing someone else's place i know they have to pay the mortgage off- but in the above case they can easily afford the repayments (£1300 from £3500 joint income) renting is second choice- lets not kid ourselves over that one they are struggling as it is,saving £200 per month would have been a huge benefit to them, plus, if they need to bail out, what with the coming HPC, they'll be in negative equity, having paid out £12000 per annum for nothing, plus all the fees and charges involved in the pruchase- No, its a bad decision all round- notwithsatdning that they were in a mess B4 they even bought the place Quote Link to comment Share on other sites More sharing options...
laurejon Posted October 6, 2007 Share Posted October 6, 2007 renting wouldnt be a whole lot cheaper thats why!eg they're paying £900 a month IO for a 2 bed in south london renting a 2 bed in south london would cost you around 700+- so they're spending an extra 200 but they know they have a home rather than borowwing someone else's place i know they have to pay the mortgage off- but in the above case they can easily afford the repayments (£1300 from £3500 joint income) renting is second choice- lets not kid ourselves over that one Some people are beyond help, surely they could consolidate their debts with a loan from Ocean Finance, it only take a phone call and you can get 25k whilst hubby does the washing up, and the kids are beating each other up in the garden. In fact its that easy, when you put the phone down you dont even mention to your husband you have just borrowed his take home pay after tax for the next two years. Quote Link to comment Share on other sites More sharing options...
Moo Posted October 6, 2007 Share Posted October 6, 2007 The biggest hole in their budget is the monthly payment on their £190,000 interest-only mortgage with Scottish Widows. Their two-year deal, taken out in January and fixed at 5.74 per cent, takes £900 out of their joint net monthly income of approximately £3,500. If they're stretched with £2,600 per month left after housing costs, they must have an absolutely Himalayan mound of unsecured debt to go along with it! If said unsecured debt is anything less than collosal, they really need to stop whining and learn to budget. Quote Link to comment Share on other sites More sharing options...
huw Posted October 6, 2007 Share Posted October 6, 2007 Only one adviser seemed to recognise the opportunity to cut unnecessary expenditure, there's no commission in that of course stop excessive babbling on mobile phones £90 stop the mag subs etc. £15 (+ whatever they save by no longer being brainwashed into consuming so much) drop the gym membership £42 make packed lunches £90 = easy savings of about 250 a month. And if they're that profligate in these few areas, I bet they could find similar savings elsewhere. Quote Link to comment Share on other sites More sharing options...
Guest tbatst2000 Posted October 6, 2007 Share Posted October 6, 2007 wow i thought it and you typed it.well done! Seconded. What f*ck*ing planet are these two from? They deserve to go under just for being so absolutely dumb and profligate with it. Quote Link to comment Share on other sites More sharing options...
ziknik Posted October 6, 2007 Share Posted October 6, 2007 I cannot believe that Isabelle has saved £2000 in an ISA for a holiday while owing £1300 on her credit cards. Why didn't she pay off the credit card, thus saving the interest and then later use the credit card to pay for the holiday. She's an accountant without any financial sense. Unbelievable! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 6, 2007 Share Posted October 6, 2007 Only one adviser seemed to recognise the opportunity to cut unnecessary expenditure, there's no commission in that of course stop excessive babbling on mobile phones £90 stop the mag subs etc. £15 (+ whatever they save by no longer being brainwashed into consuming so much) drop the gym membership £42 make packed lunches £90 = easy savings of about 250 a month. And if they're that profligate in these few areas, I bet they could find similar savings elsewhere. they could pop a webcam in the bedroom and earn a few bob every night doing " shows" Quote Link to comment Share on other sites More sharing options...
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