Do you feel sorry for people

[Greedo]

who are in danger of losing their homes through their own stupidity. I know a lot of people are in a position through no fault of there own and I feel really sorry for them but not these idiots below.

I was out there grabbing a bit of lunch there and bumped into a mate who is an IFA. General chat turned to him talking about clients of his who are heading in the direction of losing their homes. He's trying his best to sort them but he told me about how he's sick of all the ones who have put themselves firmly there themselves by lying to him last time round.

He told me about 3 separate couples who within the last 2 years re mortgaged with him and told him the reason was they were going to extend their houses, sell up, make a profit and go and buy something cheaper that needs some work (property ladder brigadetypes who think it's easy money)

Anyway, he was saying that they've all met with him recently in a panic as they are heading into the $hit and want to sort things out. High mortgages, negative equity etc....

none of the 3 couples done what they said they would do. One couple went and bought his and hers Range Rovers and now can't get shot of them either, plasma TV's etc. One couple bought a boat for weekends in loch lomond and 3 luxury holidays instead. The 3rd couple went on a 5star trip round the world to Dubai, Hong Kong, Japan etc..... and bought 2 new cars.

 

[swee'pea99]

What really pisses me off is that they've already had the high life, which I haven't, but now they'll just walk away, leaving a big hole in various private and public balance sheets which wil have to be filled up the usual way - by clawing it back, thru' raised bank charges and taxation, from mugs like me who've never been to Dubai or driven a new car, and probably never will.

 

[Kirstie]

Sorry but that is just plain stupid, and I can't feel sorry for people who don't know about living within their means and not being reckless with money. I abhor greed, unfortunately. What kind of dumb f**k spends their housing equity on short term material pleasures like a car or a TV which will only depreciate in value? Oh quite a lot of people, it seems. Hrrmph.

Bit of a rant there, but I feel very strongly about this. And I suppose I feel more strongly about the TV ads for equity release which make it look like it's all plain sailing and risk free. That's my real gripe I guess.

 

[Flying_Monkey]

I feel sorry for those in limited incomes who were persuaded that they could have the dream of their own home by greedy banks and were misled.

I have no sympathy for wealthy people living beyond their means.

Totally different things.

 

[bonj2]

I suppose a more accurate description than 'more money than sense' would be 'little money, even less sense.'

 

[Crackle]

Well releasing house equity is not new and quite a reasonable thing to do provided you go into it eyes wide open and don't overstretch yourself. You've also got to realize that the true cost of house equity is way higher than an equivalent loan because you actually end up paying for it on your mortgage over xx years, however it may well be more affordable.

What's new is the level and stupidity of people doing this as well as the totally crass reasons for it. They'll all be stung now but in 15 years time history will repeat itself.

And yes, despite that, I do feel sorry for people if they are losing their homes. I mean we know human nature is what it is, so legislation should exist to protect people both from themselves and the unscrupulous.

 

[Stan]

In these cases, and anymore out there, the answer is not at all.

 

[beanzontoast]

Well releasing house equity is not new and quite a reasonable thing to do provided you go into it eyes wide open and don't overstretch yourself. You've also got to realize that the true cost of house equity is way higher than an equivalent loan because you actually end up paying for it on your mortgage over xx years, however it may well be more affordable.

What's new is the level and stupidity of people doing this as well as the totally crass reasons for it. They'll all be stung now but in 15 years time history will repeat itself.

And yes, despite that, I do feel sorry for people if they are losing their homes. I mean we know human nature is what it is, so legislation should exist to protect people both from themselves and the unscrupulous.

While we're at it, can we get rid of all those tv programmes about 'moving to the country' etc? They really get on my nerves!

 

[fossyant]

Depends.....those that have done like the Op says - re-mortgaged and bought flash cars / life styles....nope.....

Those that are genuinely struggling then yes... my sister is a first time buyer, had her flat for 3 years now, late 20's, made redundant 3 months ago - solicitor - can't get a job...... she nearly bought a new car a few month's back, but we (family) advised it probably wasn't the best decision (1 she doesn't need a car full stop...and has a 6 year old Micra that owes nothing).... anyway...she has mortgage protection, and is only just about holding it together...

 

[beanzontoast]

Depends.....those that have done like the Op says - re-mortgaged and bought flash cars / life styles....nope.....

Those that are genuinely struggling then yes... my sister is a first time buyer, had her flat for 3 years now, late 20's, made redundant 3 months ago - solicitor - can't get a job...... she nearly bought a new car a few month's back, but we (family) advised it probably wasn't the best decision (1 she doesn't need a car full stop...and has a 6 year old Micra that owes nothing).... anyway...she has mortgage protection, and is only just about holding it together...

I agree - as you say, anyone who was just trying to do the right thing and still finds themselves getting caught in the present difficulties is quite different to someone who saw it as a way of making easy money, living for today and not thinking about the consequences (or assuming someone would bail them out when the time came). People in difficulties should be treated differently according to how responsible they have been, with the help going to those who were sensible.

 

[Rhythm Thief]

I'm glad we didn't buy anything now. I remember talking to my parents at Christmas last year and they were encouraging me to jump onto the property ladder. "You'll never lose money on property" they said, and while I agree that long term you generally don't, I'm still glad I resisted the (admittedly small) temptation to buy at the top of the market. Give me six months of saving money and then I'll think about buying somewhere. (It looks like the house we made an offer on on Saturday is out of our reach.)

 

[Crackle]

I'm glad we didn't buy anything now. I remember talking to my parents at Christmas last year and they were encouraging me to jump onto the property ladder. "You'll never lose money on property" they said, and while I agree that long term you generally don't, I'm still glad I resisted the (admittedly small) temptation to buy at the top of the market. Give me six months of saving money and then I'll think about buying somewhere. (It looks like the house we made an offer on on Saturday is out of our reach.)

Your reach or they won't take your offer? If it's the latter, just give it a bit of time.

 

[Rhythm Thief]

Your reach or they won't take your offer? If it's the latter, just give it a bit of time.

A bit of both. We're just going to watch it and offer the same again in six months or so, if it's still on the market. We do have the option of renting the place too, which would keep it off the market.

 

[Crackle]

RT. It'll still be on the market in six months time

 

[Rhythm Thief]

RT. It'll still be on the market in six months time

That's what I thought. The estate agent is very keen to sell it to us.