poppet2 Posted June 30, 2013 Share Posted June 30, 2013 The benefits system pay the interest on a mortgage for up to two years, I don't see how she managed to lose the house. But don't you have to be out of work for a period of time before such payments kick in, such as 9 months? Also, it was before that New Labour Party announcement of the govt loaning people help with their mortgage payments. Link to comment Share on other sites More sharing options...
maxmaximus Posted June 30, 2013 Share Posted June 30, 2013 But don't you have to be out of work for a period of time before such payments kick in, such as 9 months? Also, it was before that New Labour Party announcement of the govt loaning people help with their mortgage payments. Its three months now but home owners used to get help immediately, it’s also always been possible to insure against a job loss and save money for such an eventuality. After paying a mortgage for 23 years her payment should have been miniscule and her house would have increased in value significantly. Link to comment Share on other sites More sharing options...
LeMaquis Posted June 30, 2013 Share Posted June 30, 2013 After paying a mortgage for 23 years her payment should have been miniscule and her house would have increased in value significantly. She may have remortgaged and the increased value of the house would make it more attractive to the bank to repossess. Link to comment Share on other sites More sharing options...
maxmaximus Posted June 30, 2013 Share Posted June 30, 2013 She may have remortgaged and the increased value of the house would make it more attractive to the bank to repossess. There was only two years of payments left to pay so the remaining debt must have been very small in comparison to the value of the property. Link to comment Share on other sites More sharing options...
Harleyman Posted June 30, 2013 Share Posted June 30, 2013 yes don't buy a house..rent one for £600 a month...nice little earner... That's cheap. Where I live houses rent for around 1,200-and up....that's in pounds by the way...... based on current pound-dollar exchange rates Renting properties is like any other commercial venture. What you charge is what the market will bear. If decent, cheap affordable housing is needed that's the government's department. There are a lot of overheads landlords have to pay and a fair retrurn for their investment is reasonable enough to expect Link to comment Share on other sites More sharing options...
LeMaquis Posted June 30, 2013 Share Posted June 30, 2013 There was only two years of payments left to pay so the remaining debt must have been very small in comparison to the value of the property. Which is what would have made it so attractive to the bank. I had a neighbour who owed about £1,500 in arrears about 15 years ago. The Halifax repossessed even though the market was flat. They just wanted their money. With prices now a few times higher they know they can make a killing. Link to comment Share on other sites More sharing options...
jfish1936 Posted June 30, 2013 Share Posted June 30, 2013 We bought a big house in Australia for our family. They've grown and gone. We sold the big house and bought a little one. The difference funded our retirement. Rents are rising rapidly, and our grandchildren are concerned about being able to afford them. Where would we be if we had rented? Link to comment Share on other sites More sharing options...
poppet2 Posted June 30, 2013 Share Posted June 30, 2013 There are a lot of overheads landlords have to pay and a fair retrurn for their investment is reasonable enough to expect Yes, but landlords calculate these overheads into their rents, that and any profit they seek to make. Link to comment Share on other sites More sharing options...
I1L2T3 Posted June 30, 2013 Share Posted June 30, 2013 Don't you think as mortgage rates rise, rents will rise, rent and mortgages both need paying, the advantage with a mortgage is that you can extend its terms and it will one day be paid off, the advantage with renting is the government will pay it indefinitely if you fall on hard times, but if you don’t lose your job it needs paying for life. The problem is what happens if wages don't rise. Like I said what seems like cheap debt now could Become very expensive potentially destroy people in the future. The market fundamentals are not there any more to support the crazy property bubble. Deflation could be even worse. Even worse than stagflation. Link to comment Share on other sites More sharing options...
Harleyman Posted June 30, 2013 Share Posted June 30, 2013 I think it depends on where you live and how long you expect to be in the property. Nowadays, most people throw their hands up in horror if somebody suggests getting an 'interest repayment only' mortgage. When I had such mortgages, the Insurance policies backing them could be relied upon to cover the principal and - unlike regular repayment mortgages - they were transferrable. When I moved house, I bought a top-up policy to cover the difference in price and moved the mortgage with me. Eventually, when the policies matured, they paid off the mortgage I had at that time. If you're not well-established in a career or are likely to move (for promotion, advancement or whatever) then owning a house can be - unless you live in a place there they can be rented easily and safely - a marked disadvantage. I wonder how many people have refused jobs because they couldn't afford to move? Those interest repayment only motrgages were only for around five years and then the home buyer had to start making payments on the principal and the monthly payment about doubled. Hence the number of foreclosures which sprouted like mushrooms in a dark, damp cellar. I dont know who was behind the idea that owning a home was everybody's expectation including 10 dollar an hour convenience store clerks. When we bought our present home back in the early 80s the banks set the standard that a monthly morgage payment should not be higher that 25 percent of gross monthly earnings. If the potential home buyer did not reach that criteria the loan request was denied. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.