[Finance] Mortgage question

[Shropshire Seagull]

Slightly off topic [but smugly can't help myself - sorry].
I made my first mortgage payment in 1988 and my last one will be on the 28th of THIS MONTH

#byebyemillstone ...

 

[Goring-by-Seagull]

Slightly off topic [but smugly can't help myself - sorry].
I made my first mortgage payment in 1988 and my last one will be on the 28th of THIS MONTH

#byebyemillstone ...

I'll be sure to post something similar in roughly 26 years' time!

 

[Blue3]

It's a bridging loan that you would need to be put into place

 

[Uncle Spielberg]

It's a bridging loan that you would need to be put into place

Needs to be considered for sure but the rates and fees are much higher than mortgage finance, need to look at all options. What is unclear is what the op intends to do with property 1, sell, rent ? A bridging loan is normally done when a deposit is needed. A bridging loan will not solve the issue of potentially having 2 mortgages in place

 

[AZ Gull]

Slightly off topic [but smugly can't help myself - sorry].
I made my first mortgage payment in 1988 and my last one will be on the 28th of THIS MONTH

#byebyemillstone ...

Congratulations!

I paid off my mortgage at the end of 2016, and it's a great feeling!

Welcome to the club.

 

[Super Steve Earle]

Spot on. As a fellow MA, you’ve just saved me typing out pretty much exactly the same.

To add to some of the comments about interest only mortgages, residential interest only mortgage are very hard to get these days. Rightly so, I speak to people so often who are now in a really difficult situation and basically have no option other than to sell up due to irresponsible lending in the 90’s and 00’s. If you are fortunate enough to meet the lenders criteria with regard to age, equity and minimum income though, you do still have to pass the same affordability checks as if you were taking out a repayment mortgage anyway.

Surely you mean irresponsible borrowers who didn't set up a repayment vehicle, not irresponsible lending?

 

[Uncle Spielberg]

Surely you mean irresponsible borrowers who didn't set up a repayment vehicle, not irresponsible lending?

What people forget is those people managed to get on the property ladder by getting an interest only mortgage as it was cheaper. Now, by doing this they may have made tens of thousands of pounds in equity in periods of price growth that they would not have otherwise had if they had rented instead

 

[Springal]

What people forget is those people managed to get on the property ladder by getting an interest only mortgage as it was cheaper. Now, by doing this they may have made tens of thousands of pounds in equity in periods of price growth that they would not have otherwise had if they had rented instead

This is what happened to me - got an interest only in 2005, monthly payments dropped to about £94 a month when the recession hit, carried on overpaying by £400 a month and built up significant equity to go from 1 bed flat to 3 bed house 10 years later

 

[Sarisbury Seagull]

Surely you mean irresponsible borrowers who didn't set up a repayment vehicle, not irresponsible lending?

Yes for sure but unfortunately there was no way everyone doing it was going to be that sensible and also a lot of repayment vehicles were mis-sold or weren’t actually suitable for the individual or purpose. Like 125% LTV mortgages and self cert mortgages, they were a disaster waiting to happen.

 

[Sarisbury Seagull]

What people forget is those people managed to get on the property ladder by getting an interest only mortgage as it was cheaper. Now, by doing this they may have made tens of thousands of pounds in equity in periods of price growth that they would not have otherwise had if they had rented instead

Whilst that’s true in the south and south east of the country, it’s certainly not the case for many people I deal with in parts of the north and Scotland where prices have remained the same or gone the other way. As you know there are a lot of interest only mortgages coming to an end now and in the next few years where the homeowners have no way of paying it back or remortgaging, I’m speaking to them every day.

It’s one of the reasons equity release is a growing market as for many it will reluctantly be the only way they can pay it off without selling.

 

[Weststander]

Yes for sure but unfortunately there was no way everyone doing it was going to be that sensible and also a lot of repayment vehicles were mis-sold or weren’t actually suitable for the individual or purpose. Like 125% LTV mortgages and self cert mortgages, they were a disaster waiting to happen.

Very true. The soft touch approach to regulation/supervision of the lending sector in the noughties, exacerbated the collapse and near collapse of lending institutions, and misery for some borrowers who were left with negative equity when they wanted to move home.

Lessons of history are never learnt. It was similar to lax, over-lending in the 80’s, which led to 338,000 families having their homes repossessed between 1990 and 1996.

 

[Paulie Gualtieri]

Very true. The soft touch approach to regulation/supervision of the lending sector in the noughties, exacerbated the collapse and near collapse of lending institutions, and misery for some borrowers who were left with negative equity when they wanted to move home.

Lessons of history are never learnt. It was similar to lax, over-lending in the 80’s, which led to 338,000 families having their homes repossessed between 1990 and 1996.

I was working for a Lehman’s Owned Mortgage Lender in the earliest 2000’s and we had a product internally known as the right to lie product

Unlimited Adverse, Self Cert up to 40,000 income no questions based on the property market getting us the equity needed to continue the Charade of people remortgaging to actually live off the capital raised.

Spent a lot of time qualifying the influx of “IT Consultants” and “landscape Gardner’s “ and if memory serves we got extremely burnt in Thamesmead SE28 due to concentration risk. The Sales Team generally vetoed any of our investigations as they had the ear of the board.

Ahh, the good old days!


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[Weststander]

I was working for a Lehman’s Owned Mortgage Lender in the earliest 2000’s and we had a product internally known as the right to lie product

Unlimited Adverse, Self Cert up to 40,000 income no questions based on the property market getting us the equity needed to continue the Charade of people remortgaging to actually live off the capital raised.

Spent a lot of time qualifying the influx of “IT Consultants” and “landscape Gardner’s “ and if memory serves we got extremely burnt in Thamesmead SE28 due to concentration risk. The Sales Team generally vetoed any of our investigations as they had the ear of the board.

Ahh, the good old days!


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Through my profession and personally, I knew people in modest homes upwards, who remortgaged to buy £40k Mercs or to go on a bunch of lovely holidays. Dreams fulfilled in taking the family to Florida or California or Barbados. The remortgage forms generally stated “home extension”. It was about 20 years ago that new, very decent cars became ten a penny, 21 year olds buying new Polo’s, Golf’s, Minis, Beetles and A3’s often thanks to the bank of Mum and Dad (no more rusty bangers as the first or second car). Every other house even on modest Bovis estates having a shiny new BMW 5 Series or Audi. Also aided by PCP car deals.

An explosion of consumer credit.

 

[Chicken Run]

It’s a fair question, but I’ve been transparent. They shared their situation, and I said “ok, I THINK I might be able to work quickly, IF I can, would you accept X”. They said yes, I said I’ll get back to them.

Another fair question, is the property still showing “For Sale” ?

 

[Paulie Gualtieri]

Through my profession and personally, I knew people in modest homes upwards, who remortgaged to buy £40k Mercs or to go on a bunch of lovely holidays. Dreams fulfilled in taking the family to Florida or California or Barbados. The remortgage forms generally stated “home extension”. It was about 20 years ago that new, very decent cars became ten a penny, 21 year olds buying new Polo’s, Golf’s, Minis, Beetles and A3’s often thanks to the bank of Mum and Dad (no more rusty bangers as the first or second car). Every other house even on modest Bovis estates having a shiny new BMW 5 Series or Audi. Also aided by PCP car deals.

An explosion of consumer credit.

I think social media and reality tv adds to the pressure of keeping up


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[Weststander]

I think social media and reality tv adds to the pressure of keeping up


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When the widespread premium car buying started at the turn of the Millennium, the internet less of a thing then, I put it down to good old fashioned Keeping Up With The Neighbouring Jones’s.

 

[Poojah]

Well, it feels like a very long time since I first started this thread all the way back in mid-February, the day before Valentine's day. Anyway, somehow, and I'm not quite sure how, we got the job done and completed on our new home last Friday. It's been a stressful one, and it took some serious renegotiating in April to get the house down to an agreeable price given the uncertainty of the property market right now.

In particular, I'd also like to say thank you to NSC's very own [MENTION=3887]Uncle Spielberg[/MENTION], recommended to me early on in this thread. It would have been a very complicated situation anyway, but it was made all the worse by coronavirus and the subsequent lockdown. I'm not sure it would have been possible without the assistance of such an experienced and determined mortgage broker. If anyone's looking to buy a home anytime soon, I would 100% recommend enlisting his services.

Thank you!

 

[Uncle Spielberg]

Well, it feels like a very long time since I first started this thread all the way back in mid-February, the day before Valentine's day. Anyway, somehow, and I'm not quite sure how, we got the job done and completed on our new home last Friday. It's been a stressful one, and it took some serious renegotiating in April to get the house down to an agreeable price given the uncertainty of the property market right now.

In particular, I'd also like to say thank you to NSC's very own [MENTION=3887]Uncle Spielberg[/MENTION], recommended to me early on in this thread. It would have been a very complicated situation anyway, but it was made all the worse by coronavirus and the subsequent lockdown. I'm not sure it would have been possible without the assistance of such an experienced and determined mortgage broker. If anyone's looking to buy a home anytime soon, I would 100% recommend enlisting his services.

Thank you!

That is very kind. I am Happy to have helped