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After obtaining a Right to buy mortgage on my council Flat, three years later I was cold called by the same broker who advised me, His suggestion was for me to obtain a Buy to let mortgage, take some of the equity I had from this property and use it as a deposit on a house. I was assured that that this was common practise and would be foolish not to do likewise!
Not understanding completely, this was news to me! Was it the right thing to do? Was I eligible? How do you go about it? He told me not to worry, just give him my accountant’s telephone number and sign the papers when the time was ready.
I asked friends and relatives about this and they all said yes this was common practise.
The broker completed the preliminaries and I signed as directed and was granted a mortgage with a two year discount rate. Great? No not really.
I previously had a mortgage for £20,000 with a high street bank, £200 a month, a pittance; I would have paid it by now. Now today I’m stuck with £130,000 six maybe seven years to go before retirement and 18 years of mortgage to pay! OK It is a different property 3 bedroom with a small garden! But the stress, anguish and worry are just not worth it!
Full price was £175,000. The mortgage began as £140,000 after £35,000 deposit, now seven years and £65,000 later paid in interest, fees and penalties etc, I’ve only managed to clear £10,000 of it, the remainder, £130,000 I don’t stand a chance of completing it.
Everything seemed fine for a while, then I began to have problems letting the flat, then serious water leaks from the apartment above made it impossible to live in, therefore impossible to let out, then I had a tenant who developed terminal cancer, (I could not kick her and her husband out) they not being British had trouble claiming benefit so after a catalogue of setbacks, eventually I had to sell, some of the proceeds went to pay part of my own personal mortgage.
Recently I gave up being self employed, too much stress, I got a job, but then was let go when the Icelandic banks threw a wobbly! After being unemployed for while, and growing arrears, I was allowed onto an interest only mortgage, but this is coming to an end, I now again have a job, paying £1500 a month after stoppages, and I need to find in excess of £900 a month to pay the mortgage; a friend noticing I was glum asked why? I told him and he looked at my mortgage and told me to complain because he thought it was mis-sold to me. It seems it will run until I am well past retirement age, and I was never advised about that, so should make enquiries.
I was three months short of my 52nd Birthday when I was granted this mortgage and 25 years on, the length of the contract, I will be almost 77. I began enquiries with the company who then of their own volition converted my questions into a complaint...I find that very curious but as I would have complained eventually I let it stand!
Has anyone got anything, and I mean Anything to say about this?:beagle:
Not understanding completely, this was news to me! Was it the right thing to do? Was I eligible? How do you go about it? He told me not to worry, just give him my accountant’s telephone number and sign the papers when the time was ready.
I asked friends and relatives about this and they all said yes this was common practise.
The broker completed the preliminaries and I signed as directed and was granted a mortgage with a two year discount rate. Great? No not really.
I previously had a mortgage for £20,000 with a high street bank, £200 a month, a pittance; I would have paid it by now. Now today I’m stuck with £130,000 six maybe seven years to go before retirement and 18 years of mortgage to pay! OK It is a different property 3 bedroom with a small garden! But the stress, anguish and worry are just not worth it!
Full price was £175,000. The mortgage began as £140,000 after £35,000 deposit, now seven years and £65,000 later paid in interest, fees and penalties etc, I’ve only managed to clear £10,000 of it, the remainder, £130,000 I don’t stand a chance of completing it.
Everything seemed fine for a while, then I began to have problems letting the flat, then serious water leaks from the apartment above made it impossible to live in, therefore impossible to let out, then I had a tenant who developed terminal cancer, (I could not kick her and her husband out) they not being British had trouble claiming benefit so after a catalogue of setbacks, eventually I had to sell, some of the proceeds went to pay part of my own personal mortgage.
Recently I gave up being self employed, too much stress, I got a job, but then was let go when the Icelandic banks threw a wobbly! After being unemployed for while, and growing arrears, I was allowed onto an interest only mortgage, but this is coming to an end, I now again have a job, paying £1500 a month after stoppages, and I need to find in excess of £900 a month to pay the mortgage; a friend noticing I was glum asked why? I told him and he looked at my mortgage and told me to complain because he thought it was mis-sold to me. It seems it will run until I am well past retirement age, and I was never advised about that, so should make enquiries.
I was three months short of my 52nd Birthday when I was granted this mortgage and 25 years on, the length of the contract, I will be almost 77. I began enquiries with the company who then of their own volition converted my questions into a complaint...I find that very curious but as I would have complained eventually I let it stand!
Has anyone got anything, and I mean Anything to say about this?:beagle:
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