Clip from ITV News about a woman who was forced to sell her home after 15 years in negative equity.
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@stokesbay21525 ай бұрын
High mortgage costs now are the collective responsibility of all those who overpaid for property. BoE rate is the same now as it was in 2008. I have no sympathy for those who overpaid through borrowing an amount they cannot now afford. Do any of them shed a tear for people who can only afford to rent because house prices are too high due to people borrowing as much as the bank will lend them?
@Natta444 ай бұрын
No sympathy for those who were effectively missold or pushed into incredibly too good to be true loans? There isn't enough real financial education in this country. Why? So the majority can get shafted tricked and trapped in life long loans because there is NO other way to afford a house, you know a basic nessesity? Imagine if water was held by the rich and charged £100 per litre, or food was charged at £50 for a sandwich. Same thing has happened to homes through the ignorant current government allowing demand to sky rocket by not building houses and allowing corporate landlords to greedily buy up all the stock. Oh but blame the average couple who likely bought a house when they were in their 20s on starter salaries and wanting to get a roof over their heads. Let me guess you are a boomer or gen X sitting on a £££ property looking down your nose at everyone's unfortunate situation?
@tu51495 ай бұрын
The incoming depression started in 2022. Overpaying with cheap credit has a price.
@CodingAbroad4 ай бұрын
Just be glad you have parents to move back in with. I’m not even 40 and both are gone now
@trewjohn20014 ай бұрын
Interest rates are not “eye wateringly high” the amount people borrowed is eye wateringly high. It even says mortgage calculators “be careful because at 12% your repayments will be….”
@user-eg7nt1bn1u5 ай бұрын
and in a falling market Rishi wants to introduce 99% mortgages, why not go full Northern Rock with 125% to get the market moving
@change2023now5 ай бұрын
@0:30 " sold off to unregulated lenders" that's just criminal. This is the only time I would say the gov need to intervene to move these owners onto competitive market products. It could be something that all banks take responsibility for should it happen again.
@gregoneill9905 ай бұрын
Agreed. Absolutely disgusting. They thought had mortgages with a bona fide lender who went bust through no fault of theirs, and then, what? The mortgage is passed on to a loan shark? Who sold the mortgages to the unregulated lenders? Utterly immoral.
@philyewin48805 ай бұрын
It's unfortunate, but not something the government can spend tax payers money fixing, especially when some of those tax payers are having to rent. If the homeowner made a 100% profit when selling they wouldn't complain and the profit wouldn't be taxable.
@akastewart5 ай бұрын
I agree it’s disgusting, but it might be that there weren’t any regulated lenders willing to take over the debt, leaving only less scrupulous lenders as an option.
@change2023now5 ай бұрын
@@philyewin4880 You miss the point and issue entirely. I'm not suggesting tax payers bail out, I suggest a banking insurance policy/charter which all banks must comply and cooperate with in the event a bank becomes insolvent the mortgage book gets divided between all other major banks. The mortgage holders are then not left as prisoners unable to re-mortgage to a competitive deal. These people have and are paying substantially above the comparable market rates all through no fault of their own. It's like an FCA savings insurance but for mortgages.
@change2023now5 ай бұрын
@@akastewart Unregulated lenders should be banned.
@user-rq5kx8gk6c5 ай бұрын
A lot of the mortgages were for over inflated new builds also which has compounded the negative equity issue if the borrower took out a 100% mortgage. My brother has been trapped for 20 years so far as the price has not risen since purchase! Impossible to be believe but very much the case.
@stevep92215 ай бұрын
I sold in 1997 having paid 5 years of mortgage and lost all my £7500 deposit plus another £2500. It will happen to 10s of thousands in the next 18 months.
@MovingHomewithCharlie5 ай бұрын
Wow Steve. Can you elaborate? What forced the move, why couldn’t you stay in there as the market rose, a change of career or similar? Also, were you able to buy despite losing your equity or did you have to go into rented then, and miss out on the price rises?
@stuartburns86575 ай бұрын
We brought our 1st home mid 2006 so shortly before the '08 market crash. It was only a mid terraced home and our intention was to only stay 5 years. We ended up living there 15 years due to negative equity. A combination of buying at the top of a bubble, and the area (which was 85%+) home owners, then deteriorating and becoming a rental hell scape. It was quite sobering watching a decent neighbourhood slowly sink into a borderline slum. Tenants just dumping old furniture in their front gardens, or even at the bottom of the street. Rubbish from bins all over the place. The last 4 years where horrible, and it was only thanks to years of overpayments that we got out. Brought for 77k and sold in 2021 for 69k. Could have held out for slightly more, but by that stage, we had 2 rental neighbours who could only politely be described as noisy animals. Sadly (although appropriately for the area) it sold to a landlord :(
@stuartburns86575 ай бұрын
Oh, and of course our 1st mortgage was with Northern Rock lol. Only saving grace was I took a gamble on a tracker mortgage after they collapsed, which with the low interest rates, was saving me £215pm. This was used for overpayments. Without that 'good fortune' I fear I'd still be there today
@DJLalr5 ай бұрын
@@stuartburns8657 Mate, thank the bl@@dy landlord - if they did not buy it - the money lender - bank would have happily reposesed your home - kicking you out on the streets (and yes, the law is written to protect the money lender/banks at all costs which will be piled on to what you owe - increasing what you owe) without thinking twice.
@stevep92215 ай бұрын
Yes I can elaborate. I bought in 1991 for £37,500 having put down £7,500 deposit and getting £30,000 endowment mortgage. I sold for £27,500 in 1997. The endowment was practically worthless because the stock market crashed. That is a 26.5% loss. I was lucky because I was gifted money to buy my next house. That house has gone up from £80,000 and went up to £419,000 in Apr 2023. Even though I lost over a quarter in the first house I have made 363% on the second. I did put a kitchen extension and proper loft conversion in for £45,000. So that is a realistic 200% increase in 26 years. I have pent up anger right up to today and have never been able to move again. Very important is there where no buy-to-let mortgages then. I was actually blocked from buying another house until I sold and the other important fact is because of my military pension I paid of my mortgage at 50. I have done a house sales review by the land registry site in Plymouth and the average fall there is minus 11% on the first 5 houses on the list. It is obvious that some (very naïve buyers) have been hoodwinked to paying too much and the ONS are only including 16% of sales as if they included any more it would reveal a disaster bigger than any previous financial fraud. @@MovingHomewithCharlie
@jaytoor50885 ай бұрын
"Eye wateringly high interest rates?" Ummmm no.... These are historically average. We got used to ultra low interest rates and artificially pumped up house values. This much needed correction is all a good thing for first time buyers who can no longer prop up this goliath of a bubble.
@Noallegiance5 ай бұрын
Amazing how none of these people accept any responsibility for their own decisions. IMO people create 80% of their own difficulties.
@andrewtaylor67375 ай бұрын
Don't be too hard on them, they have listened to the narrative - prices will always rise & interest rates will stay low forever. 8% interest rates should have been factored in, but sadly they didn't listen or have the forsyth to realise the nigh on free ride would ever come to an end. Reality has finally hit home! 😢
@toiletrollholder5 ай бұрын
Not a fair analysis. Northern Rock was being pushed relentlessly by mortgage brokers back then. Through our much loved estate agents no less. It was almost the only deal offered. I had a lucky escape.
@dannyh92905 ай бұрын
OK boomer.
@judoTRON5 ай бұрын
What a douche
@ohnoitisnt4 ай бұрын
Imagine choosing to enslave yourself to 30 years of your entire lifes income being used to pay for a building. No thanks!
@welshhibby2 ай бұрын
Fail to prepare, prepare to fail. Interest rates were always going to go back to normal levels that combined with borrowing too much is a recipe for disaster.
@andrewtaylor67375 ай бұрын
For those who've had a mortgage for years, the money they must have saved from ultra low interest rates! They must have quite a nest egg, I'm sure they will be able to ride the storm.
@boandonoff40265 ай бұрын
Is this a tinge of sarcasm in this comment? 🤣Very few people save...people love living above their means every chance they get. Even if you stress-test interest rates, you can't stress-test human behaviour
@andrewtaylor67375 ай бұрын
@@boandonoff4026 Very true in your reply, no sympathy for these people as I've always tried to budget for a rainy day & their rainy day has arrived! The ones I feel for, younger people who believed prices would always rise listening to false advice & over leveraging themselves as I did back in the 90s and had my fingeres well & truly burnt. The good times are over & the free money has run out!
@andy_xtr38615 ай бұрын
I doubt it, most likely spent it on Starbucks and just eat takeaways
@ohnoitisnt4 ай бұрын
Hahaha learning from history whens that ever happened
@stephengreen89865 ай бұрын
The story is about mortgage prisoners. Labour sold off the bankrupt Northern Rock and these were people in low paying jobs with lack of financial discipline or sophistication. She probably has no equity because Barnsley property has not gone up since 2008. I know that seems odd but there are little housing pockets of negative equity still from 2008.
@Ditch_Head5 ай бұрын
This gets me so angry😤 how can they get away with this ruining of peoples lives and get bailed out……wtf🤬
@turrican19005 ай бұрын
"The average UK house price is projected to fall by only 3% in 2024, in line with our view that the worst is behind for the housing market". That's what I saw when I Googled "House prices 2024 UK". It's really hard to know who to listen to but after watching many of Charlie's videos, I can see exactly how many people may lose a lot of money in the next few years.
@user-bz6nt2ez5q5 ай бұрын
Well overpay, overpay always when you can, dont bet on abundance peace and easy living forever, and just keep living the life of a 15th century nobleman.
@AM_o20005 ай бұрын
For the sake of balance, how about some coverage of those trapped in rent due to high house prices and high rents, 'in debt' to their landlords month in, month out,, with no consolation of a capital gain and, crucially, not having made a mistake of overborrowing.
@sugadre1235 ай бұрын
Renters can't be trapped. If you don't owe a very big loan to a financial institute thats going to affect your credit if you default you are definitely not trapped. There are other ways to make money apart from putting all your eggs in a mortgage basket. Stocks, businesses, savings etc. You can even invest in a reit if you want to get a piece of the housing pie. What is for sure is that its never a good idea to overleverage yourself. No matter how many times in history this has happened there are alway people who fall for this in every low interest rate cycle. And those are the same ones who lose their house in every high interest rate cycle. There are just some people who should never qualify for a house ever. Lowering the standards and making these type of people eligible for home ownership is just setting the time bomb for what's happening now and what has happened throughout history.
@dlc24795 ай бұрын
UK law is such that you basically have 6 months of free rent bc that's the least amount of time to get a bad tenant out. Renters aren't trapped, it's the biggest benefit of renting - flexibility. If you lose your job as a renter, you stay there rent free for 6 months + then go to the council with your credit score in tact. Defaulting on your mortgage has horrible consequences for your finances.
@AM_o20005 ай бұрын
@@sugadre123 Of course renters can be trapped. They owe their landlord a debt every month and when rents are high relative to incomes they may not be able to save money to escape the rent trap.
@AM_o20005 ай бұрын
@@dlc2479 And after the six months? Are you 'free', having escaped the system? Or do you just move on to owing someone else?
@posh825 ай бұрын
The 1150 she’s talking about have been rents for a long time. Renters are treated like second class citizens but we have been paying more than home owners. Her mortgage of 650 was a bargain compared to my 875 I was paying in 2020 for a 1 bed flat (rent in the south), without bills. Now 1 bed flats are going for 1000 and above . Loads of home owners are now feeling the pinch like renters have for years and now rent is even worse and ridiculous too high. If they can’t afford they sell up or downsize simple. If you can’t downsize renting is what they have now Just as renters HAVE to pay high rent. Tired of renters been looked down at for affordability of a mortgage
@oanalesnic795 ай бұрын
A leasehold 1-bedroom flat in a period house in London, a 10-minute walk to Blackhorse Road station (zone 3), is listed with an asking price over 300k. The property features great renovated interiors. The agency has received three offers, and one of them is 320k. There are still many people prepared to overbid. The alternative is still paying ridiculous rent for poor accommodations; therefore, many people who overbid are thinking in the long term.
@jameslamb46505 ай бұрын
history never repeats but it rhymes….
@estherbravo49265 ай бұрын
I don't know where those aerial photos are of, but it's not Barnsley. Also, a £1,150/month mortgage in Barnsley.. that must be a 4 bed semi.. (average price of a semi detached £162k)
@jamiejones6425 ай бұрын
😂😂 bring it on
@damianwatson53475 ай бұрын
I remember when Cerberus bought the loan book. No surprises with an American P/E firm...dollar power... Makes you weep.
@agnosticevolutionist35675 ай бұрын
I blame people greed and narcissistic view of look at me I’m a winner.your lose when you die and the system is set to make you a loser when your alive ,,just give it up,your realised you spent your whole life working for an empire of dirt.
@miriamllamas2245 ай бұрын
So unfair. Mortgages should have a fixed rate for the entirety of the loan. It shouldn't be a gamble.
@thetaleof2wheels.9475 ай бұрын
I had a mortgage with Northern Rock, as well as a bank account. It transferred over to Santander, not some dodgy lender, and that was with a 100% mortgage. Same with the bank account, which I still have to this day as a legacy account. Something not 100% right about this 🤔
@edc15695 ай бұрын
She probably had negative equity and Santander wouldn’t take her
@allykhan85944 ай бұрын
Mine was switched to a non lending company. N.rock wa best thing i ever did financially, but my story is far from normal. My loan to value ended up 30/70.
@dlc24795 ай бұрын
"Property always goes up"
@FiscalWoofer5 ай бұрын
Haha, just depends ‘when’ you need to sell. If you can ride the cycle and wait then easy, but most don’t have that luxury, we have to sell when circumstances change.
@tamashumi79615 ай бұрын
How is that even legal that lenders are able to go after anything more but the property which backs the loan itself? It's a conflict of interest, isn't it? I mean, lenders can play far more risky as they play their part in inflating property price bubble, as its not so much their skin in the game when the bubble bursts. The whole banking sector would take care of property prices not exceeding real value too fast if their had to weight their risk accordingly.
@harjbachra245 ай бұрын
Every house under £450,000 has sold . I think depends on the location. Location location. I’m in leamington spa
@jaytoor50885 ай бұрын
Utter nonsense nationally 😂
@jruk19815 ай бұрын
It needs a drama to be made about it like the Horizon scandal to get things moving. Absolutely disgusting
@toiletrollholder5 ай бұрын
Northern Rock should fall under mis-selling. They were pushed relentlessly especially by brokers in estate agents.
@JevansUK5 ай бұрын
People who borrowed more than the house they were buying was was worth have some what got themselves to blame
@toiletrollholder5 ай бұрын
@@JevansUK not the way it was pushed. Seriously, you had to be on the receiving end of it like I was. Borrow more than the property and you can repair it, furnish it, whatever. Luckily I trust noone so was able to rationalise. I still fell for a bum deal from Skipton but at least it was better than Northern Rock. Nationwide capped at 3 x salary and I thought I might need slightly more so I didn't use them.
@pbmltd90235 ай бұрын
I have my own business that is approaching 200k a year in turnover and I have absolutely no chance of buying a house. 45 years old and I have never had one and do not much care anymore. Buying (borrowing a shed of load off a bank) is simply a kind of voluntary serfdom anyway and when you think about it is so weird that we are so anxious to bring that yoke over ourselves!
@avancalledrupert51305 ай бұрын
You either pay your own mortgage or you pay 150% if someone else's. One costs less and you eventually have a house instead of nothing
@pbmltd90235 ай бұрын
@@avancalledrupert5130 I guess so but my rent is £850 per month (the landlord owns it outright, no mortgage to pay.) If I was to get a mortgage for a similar place it would be £1500 per month, or so. Plus I would be liable for the upkeep of everything. Also, 'owning' a house creates a feeling of ownership which translates into huge resource depletion. That is, I would want to constantly improve it and spend fortunes on it. As it is now I don't really care and just focus on other things (like my business.) Maybe I will make such a big business that I can just buy one outright without the mortgage system but if not I will simply downsize once the kids are grown and live in a nice apartment. Inheritance tax only takes it off of you anyway!
@zKsery5 ай бұрын
@@avancalledrupert5130 yeah all good and well in theory but not when a house has almost 2.5x value in 11 years and wages have gone up by like 1.3x.... I have friends still in London earning 80k , 90k etc and even with a gf earning 65k buying even a crappy 1 bed is out of the question at the moment. House prices crashes happen regularly, the smart people just need to wait on the sidelines
@davidallen5135 ай бұрын
Negative equity 2.0 coming to many in 2024. Unable to remortgage and having to stay on expensive SVR as a remortgage will expose the negative equity and leave many homeless.
@desiday70704 ай бұрын
They will still have a new PCP car though 😂
@HorseSaddleRider5 ай бұрын
Why can't they take in a lodger?
@change2023now5 ай бұрын
Not always practical. We don't know the person's circumstances.
@teddyb49575 ай бұрын
Their circumstance are that they can't afford to cover the monthly payments by themselves, so not taking in a lodger is a) even less practical, and b) not an option...unless of course they expect others to fund their mortgage through their taxes whilst managing to 'live by their means' rather than beyond them?!@@change2023now
@dlc24795 ай бұрын
Taxes on rental income are horrible. It's not likely to be enough net of taxes.
@stephengreen89865 ай бұрын
Check out government rent a room scheme. You can get up to £7500 a year tax free.
@kevinsyd20125 ай бұрын
@@dlc2479 You can rent a room to a lodger for £7,500 per year tax free.
@tourrhythmgolf-3to15 ай бұрын
yeah this is unfortunate. anyway what about these 35% falls
@MovingHomewithCharlie5 ай бұрын
well underway, on track
@TF-cn6oj5 ай бұрын
If only there was a solution to this, oh there is, save in bitcoin and you won't need a mortgage
@01menyou5 ай бұрын
Correct, been commenting to Charlie for a year on n off. Stop paying the mortgage, buy BTC. Houses are finished.
@andrewtaylor67375 ай бұрын
It's down at the mo as well as XRP & other coins I have, to many whales keeping prices down!
@change2023now5 ай бұрын
FFS, crypto is the biggest Ponzi in history. BTC maybe adopted but equally as likely is one day a major flaw or new technology emerges which wipes it out overnight. That wouldn't happen to gold.
@TF-cn6oj5 ай бұрын
@@andrewtaylor6737 who cares, keep stacking, number go up over the long run, no counter party risk
@TF-cn6oj4 ай бұрын
@@andrewtaylor6737 Why use other coins, there's only one decentralised coin, it's bitcoin and everything else is a scam. Xrp is no different to the GBP
@muratdagdelen81635 ай бұрын
House market is rock solid. Huse prices are only heading in one direction: Up up up
@sevecc9395 ай бұрын
Be quick mate, go and buy everything and make your fortune.
@TF-cn6oj5 ай бұрын
If only there was a solution to this, oh there is, save in bitcoin and you won't need a mortgage
@ph80775 ай бұрын
You're banging your head against a brick wall. The majority believe the misinfo & FUD from the MSM ref Bitcoin...which is bizarre given the MSM's recent fall from grace in terms of misleading ordinary people! People should listen to billionaire entrepreneur & MIT genius, Michael Saylor instead - he's certainly put his money where his mouth is!