The recent debate on people struggling to pay extensive mortgage payments? What advice can you give?
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??
Answers:
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.
Buy a tent.
eat beans mostly for awhile
refinance if and when you can
maybe soup kitchens if it gets tough, keep the house
maybe get a tenant or two
Cut your expenses and earn more money to pay your bills.
Try this Site; http://www.realmoneyideas.com Go to the
following pages: "Cutting Expenses" "Money Saving Ideas"
and "Additional Income" Lots of great ideas and info on those
pages.
1) Refinance your mortgage or
2) Sell your property or
3) Rent a room in your house to a border or
4) Convert your home from a one family to a multi family and rent
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
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
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.
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
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 !!
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.
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.
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
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Answers:
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.
Buy a tent.
eat beans mostly for awhile
refinance if and when you can
maybe soup kitchens if it gets tough, keep the house
maybe get a tenant or two
Cut your expenses and earn more money to pay your bills.
Try this Site; http://www.realmoneyideas.com Go to the
following pages: "Cutting Expenses" "Money Saving Ideas"
and "Additional Income" Lots of great ideas and info on those
pages.
1) Refinance your mortgage or
2) Sell your property or
3) Rent a room in your house to a border or
4) Convert your home from a one family to a multi family and rent
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
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
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.
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
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 !!
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.
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.
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
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