The recent debate on people struggling to pay extensive mortgage payments? What advice can you give?

Question

I one of those individuals, after joining the property ladder in june 2005. I find myself in great financial difficulity, there doesnt seem to be any help or advice. Especially from the goverment????

Answer 1

I suggest you contact the citizens advice bureau or one of the charity debt companies - national debt line, consumer credit counselling service, etc. Whatever you do, contact them asap and do not pay anyone for any service to do with your debt until you've spoken to any of these people. Their services are free.

All the best.

Answer 2

SOOOO many people go for "adjustable rate mortgages" which are a HUGE mistake... YOU do not need your monthly payments changing! "Fixed" rate is the only way to go.

Plus people think they are getting a good deal by signing up for "interest only mortgages"... thinking they can be homeowners now...weeeeeeeeeeeeeeeeee what fun !! They fail to realize after 5 years of paying interest only they still have the entire home to pay for and have achieved nothing but basically RENTED from the bank!

People feel they deserve such a big house.... and take on far more than they need to.... I feel I deserve money in the back, in my pocket, in my underware drawer..where ever !! A big house was not my priority which then led way to having more money and having that money make money on its own.

A rule of thumb I tell the people I tutor is NEVER have a home that is worth more than 2 years of your income IF you want financial freedom ! Some people laugh at that small amount and I laugh back at their HUGE debt and smile over MY asset column !!!!

aaaaaaaagh life is good !!

Answer 3

You need to speak with a reputable Mortgage Broker. You may have an mortgage that does not suit your income. Mortgage brokers give free advice, so do not pay a fee for this service.
Do you have a spare bedroom you can let out, or a garage that someone can use? You need to get this sorted out pretty sharpish. If the property is repossessed you will have bad credit history............and your troubles will really begin. Good luck

Answer 4

ok you're presently paying a mounted activity value of five.5% - what value are you getting interior the economic company/everywhere your value reductions are actually? additionally what's the present retail inflation value the place you reside? the possibility is which you have become decrease than 5.5% and if so then the value of your value reductions would be going on relative on your very own loan and inflation (if that's above the value reductions value). additionally, how long is your mounted value for? Is it for the dimensions of the non-public loan? If not and you in hassle-free terms have a year or 2 left on it then what value will your very own loan upward push or fall to? What i'm suggesting right this is to think of down the line slightly. notice what cutting-edge mounted expenses are accessible on the marketplace - ought to you re-pay your very own loan and then re-mortage your sources for a decrease mounted term - one that could cost decrease than your cutting-edge activity value on the money? All in all i might continually recommend paying off a private loan - you not at all understand understand what's around the nook and in case you lose your job or have some economic hiccup then a minimum of you have a roof over your head.

Answer 5

If you bought a property that was more expensive than you could afford, you made a mistake. Rather than ruining your credit, you should probably consider selling and buying something with payments you can manage.

If you bought with a variable interest rate or balloon payments, it was explained to you at the time of purchase that the interest rates would change or that you would be responsible for the large payment. You were informed, and you are responsible.

Answer 6

Do not borrow money that you cannot afford to pay back.

You should have looked at the figures a bit closer before you borrowed the money.You will now need to cut back on everything that you can.
No holidays,buy a cheaper car,buy cheaper food and clothes.
I would start now-the mortgage rate is likely to go up soon-making things worse for you.

Answer 7

I would speak to the bank that hold your mortgage, they can help with payment holidays, reducing payments perhaps even changing to an interest only mortgage until you are back on your feet. You should remember than an interest only mortgage will not reduce your outstanding amount in any way.

Another option is to contact the Citizens Advice, they have a deby management team who will be able to help

Answer 8

If people didn't live beyond their means they might not have to struggle to make those"extensive?" payments. Just because some a**hole of a lender will arrange some creative financing don't mean you can afford it. Creative financing=recipe for bankruptcy. If you expect help from the government you are still living in a dream world.

Answer 9

wheres some advice for you all only buy what you can afford

man i bought a property for £20k its in the middle of a block of 3 nice area and quiet never had a problem payed it of in 4 years

my mate turned his nose up and went to a new area got a house for £210k now works every hour gods has has no money for any thing else and all

cause he wanted a new house to show of in now 5 years later his house is woth £250k lots of the houses have structural flaws and need the founds redone mine worth £110k so who made the killing and looked to the future

Answer 10

There are many ways people can cut on their spending that seem to slip our mind. Not eating out, turn off the cable, get cheaper Internet, sell one car, budget your money better. IF you keep track of everything you spend money on, I am almost sure you can find enough to make up for the difficulties you have