borrowing on mortgages,?

Started by alfred, June 14, 2022, 08:09:58 AM

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alfred

i was surprised to read the other day of some people, borrowing money from finance companies to pay their mortgage rather than fall behind with repayments ,

as we all know a mortgage takes a lot of money to find each month so borrowing even more money to pay for a mortgage  in fear of losing their home, is alarming and i assume even more risky of defaulting on mortgage payments,

Q; i cannot understand the risk of getting into more debt to pay off a mortgage 
preferably having possibly a second job would be more helpful 
what are your thoughts what would you do in those circumstances, 
is  there an alternative ??

klondike

I guess that it's desperation stakes. They are presumably hoping that their problems are short term so taking a long term loan to tide them over that seems a good way out. It almost certainly isn't. I didn't know anybody did this. I wouldn't. I'd start by talking to the mortgage lender.

It's good to moan.

Scrumpy

I feel so sad for them.. There seems to be no alternative.. 
When a person gets on the property ladder after having saved for a very long time It must be heartbreaking to lose it all..  Renting is costly and nothing belongs to you..
  Desperate times call for desperate measures.. Someone out there is making big money on the backs of these unfortunate people..
Don't ask me.. I know nuffink..

-Oy-

I've been there.

There was a short spell many years ago when the kids were very small and when money was very tight.

Our lovely Bulding Society decided that the mortgage break they'd agreed too while Mrs Oy was on maternity leave was never agreed.

We paid the mortgage on a credit card for a few months while they took us to court for not only the missing money but for the house itself.

Thankfully the Judge saw sense and said some very choice words to the lying scroat from the building society. Times were hard for them too and they were foreclosing on anything they thought they could get away with.

We added the money they were due to the mortgage and kept our home. First chance I got when we slowly became more stable was to remortgage with our bank.

I'm happy to say that after both taking early retirement last year - we owe money to nobody :)
"If a man does not keep pace with his companions, perhaps it is because he hears a different drummer."

Scrumpy


So many have no chance ..  and when they fall they land heavily ..
Don't ask me.. I know nuffink..

Jacqueline

I  told my daughter when she got her mortgage pay this payment first, the electric etc. can't take your home away if you get into debt but the building society can so make it your priority. 

I honestly don't know how people manage these days with their enormous mortgages and the prices of houses.  We had a £32,000 mortgage and it worried the life out of me all the years we had it.  It was one of the happiest days of my life when we bought this bungalow with no mortgage.

Alex

Years ago when I got divorced I got into difficulty and used credit cards to keep my head above water.  It took a long time to pay them off as I kept transferring to another card. 

My ex was always smug telling how he 'gave' me the house, what he did give me was a bloody mortgage to pay off on my own !

I feel sorry for today's kids the size of some mortgages is unbelievable.   

klondike

The interest rate are (or at least were) a whole lot less these days though.

It's good to moan.

Scrumpy

My mate was left with the children and a mortgage when she got a divorce.. She really struggled and it took her years to pay it off..
My daughter Marnie was left with children and a mortgage too.. She struggled.. and she had to find 300,000 (half the cost of the property) to pay him off otherwise she would have lost everything.... 
Don't ask me.. I know nuffink..

Cassandra

Quote from: Scrumpy on June 14, 2022, 02:31:37 PMMy mate was left with the children and a mortgage when she got a divorce.. She really struggled and it took her years to pay it off..
My daughter Marnie was left with children and a mortgage too.. She struggled.. and she had to find 300,000 (half the cost of the property) to pay him off otherwise she would have lost everything....

But most probably the best thing she ever did, both for her's and her children's future. what's a £600k house worth today (decades on?)  and completely tax free of appreciation? Well done Marnie for such dutiful diligence and sacrifice.
My little Dog - A heartbeat at my feet ...

Scrumpy

Thank you.. I am so proud of her..
Don't ask me.. I know nuffink..

Michael Rolls

Thank you for the days, the days you gave me
[email protected]

klondike

A rise in house prices is no good to you though unless you either downsize or move to a cheaper area. It's not as if you can nibble a bit off the walls for your tea.

It's good to moan.