Non-motoring > Financial farce still running Miscellaneous
Thread Author: Falkirk Bairn Replies: 7
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New Mon 24 Jan 11 21:56 
 Financial farce still running - Falkirk Bairn
Couple about to be married own 2 x flats which have not sold and are worth about what they paid - i.e. no negative equity if they sold at the advertised SP.

Cannot sell so renting out one @ 80% coverage of mortgage

They have bought a repossessed 4 x bed @ £250K with 100% mortgage from the repossessing bank.

Prices in £££s but this is in Eire

Neither wonder problems exist - young couple looking at £500K+ outstanding against 3 x properties - 2 incomes + partial tenant rent.

Who is wrong?

Couple
Bank
Both
or is it just me being cautious!
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New Mon 24 Jan 11 22:04 
 Financial farce still running - R.P.
Scary,
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New Mon 24 Jan 11 22:05 
 Financial farce still running - Zero
I am surprised to be Honest.

I have heard tales of financially sound people being turned down for mortgages for the most trivial of reasons.
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New Mon 24 Jan 11 22:06 
 Financial farce still running - Bromptonaut
I guess there needs to be a caution because ROI has fallen peak to now, far more than UK and may yet fall further. What's the o/s debt as an income multiple?

If they cannot sell at the advertised price then it's too high and perhaps there is -ve equity?

And the banks are to blame.


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New Mon 24 Jan 11 22:09 
 Financial farce still running - R.P.
Happened to us on the house we're trying to sell, perfectly sound propositions turned down for a mortgage.
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New Mon 24 Jan 11 22:14 
 Financial farce still running - Bromptonaut
It's tight on any credit atm. Apart from redundancy risks I've got a good record but Santander turned me down for their Zero card. Perhaps the sussed I only wanted to use it abroad (no foreign use charge)??
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New Wed 26 Jan 11 05:24 
 Financial farce still running - Falkirk Bairn
>> What's the o/s debt as an income multiple?
>>

£250K = 3 x combined income so the total mortgages are approx 6 x income less rental of one flat.
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New Wed 26 Jan 11 12:10 
 Financial farce still running - Mapmaker
1. >>worth about what they paid - i.e. no negative equity if they sold at the advertised SP.


2. >>Cannot sell so renting out one

Reconcile point 1 with point 2. They ARE in negative equity.

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