Sunday, Jul 21, 2019

Cry me a river

Telegraph: Buy-to-let nightmare: ‘I owe 56k after zombie banks repossessed my property empire’

Greedy boomer buys three BTL properties in the early 2000s with little deposit on IO mortgages. Fails to pay off any of the capital. Lenders go bust. Boomer is stuck paying an "excessively high" 5.09 per cent interest rate because he doesn't have enough equity to remortgage elsewhere. Can't afford it and properties get repossessed. Goes bleating to the Torygraph. Comments are scathing.

Posted by little professor @ 09:06 PM (1361 views)
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5 Comments

1. landofconfusion said...

I agree with some of the comments; the "it was zombie banks which did it" argument doesn't stick. Rental income has risen as have house prices and yet he's still underwater? And if a margin call looked likely why didn't he just sell out?

And an IR of 5.1% for what is effectively a commercial loan isn't bad either.

Monday, July 22, 2019 12:00PM Report Comment
 

2. tenyearstogetmymoneyback said...

No sympathy whatsoever. That is three first time buyers he has denied getting properties.

He looks old enough to remember double digit interest rates and prices dropping 20%.
Perhaps he was a tenant himself back then and ignored what was happening in the land of owner occupiers.

Monday, July 22, 2019 09:48PM Report Comment
 

3. mombers said...

How many thousands of pounds of free public services and housing benefit did he hoover up during his ill fated venture?

Thursday, July 25, 2019 08:27AM Report Comment
 

4. jack c said...

Typical individual who wants all of the upside benefits but non of the risk (or ruin in this case)

Thursday, July 25, 2019 09:04AM Report Comment
 

5. deepak said...

So who made the money?
1) Government/ Local council: By taxes
2) Bank: Maybe not, as they would have the loss of on investment and the cost of loan
3) Bank employee: The person who got the loan signed off. This is not the investment banker I mean, this is common lower level paper filler.
4) Estate agent/ lawyer: General services that you have to use when buying house
5) Insurance: Yes,
6) local residents: Whose property value goes up due to geared buy from the business who can write off the interest (or could do)
7) Other banks: Probably made money, due to their asset value going up, the Loan to value would go down. Hence could loan more money.
8) Market makers: Like zoopla, rightmove, people who create indexes (their jobs)

Very interesting, I just started by thinking who made money. Got quite a few people there. So is there are reason for the status quo to change with one person failing. I think not. There circular moment of money makes a lot of people money here.

Thursday, July 25, 2019 05:11PM Report Comment
 

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