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OMG!!! Key worker mortgage prisoners!!!!!!!!


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https://www.bbc.co.uk/news/business-53380724

Melissa Antwhistle has been dressing in protective equipment every day for round-the-clock shifts on the frontline at Scunthorpe general hospital, including in the intensive care unit.

But financially, she feels far from supported.

Speaking between shifts, she said: "Many mortgage prisoners are key workers like my husband and me. Doing this job with all the stress of Covid and also looking after our children aged one and three, we could do without the extra stress and anxiety of this financial nightmare.

Well done. Loads of detail, bar what she does.

Her husband Kevin - also a key worker who runs and maintains a power station on the south Humber bank - took out a £120,000 mortgage with Northern Rock in 2007 at 100% of the value of his house with an unsecured loan on top.

Two adults,, working.

Even with a totally unambitious £100/m/head, call it 2500/y repayment

13 years = ~30k repayment PLUS whatever repayment oon the mortgage so at least another 20% off, so theyd only need a ~60% remortgage tops. No problems.

There would be no issue with them remortgaging if theyd paid down the mortgage.

These people are fucktards.

 

 

Edited by spygirl
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29 minutes ago, Frank Hovis said:

 

What?  What?  Why in the second line are we immediately onto front line workers and the latter day saints that are nurses (my apologies to any nurses who are as sick of this beatification by media as I am)?

My direct experience is that, far from getting sick of it, they're actually believing the hype.

6 minutes ago, spunko said:

We all know where this is going - special low interest rates for nurses. You smirk but you know it's true.

I'm not smirking.

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48 minutes ago, Frank Hovis said:

What a stupid article.

 

Okay, fair point.  Sometimes banks have to be forced to play fair.

 

What?  What?  Why in the second line are we immediately onto front line workers and the latter day saints that are nurses (my apologies to any nurses who are as sick of this beatification by media as I am)?

Does the BBC simply want exemption for them whilst all the others - private sector workers and self employed - can go whistle?

And as key workers they have lost zero income in this.  No 80% of salary for these guys their jobs have just continued unchanged.

If anything the people who need the help are specifcally not the "Thousands of frontline workers, including nurses and hospital workers" but everybody else because they will be the ones who will have lost income; especially the self-employed many of whom will have seen their earnings crash.

 

Stupid bloody BBC.

 

And let's personalise it to the retard who actually wrote this ullage:

Andy Verity BBC Economics correspondent

Him:

_90447205_andyverity.jpg

 

I dont think shes a nurse.

Ass well as the gormless 'key workers' the article deliberately avoids saying exactly what she does,

Shes got two young kids. Id bet big money shes just a cleaner or foody, doing 16h.

 

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I read this - £120k mortgage with a loan on top. Northern Rock, 125% LTV, IO. What an amazingly bizarre time, and of course we're still feeling the ripples from those few years of absolute madness. 

 

Quote

 

Two adults,, working.

Even with a totally unambitious £100/m/head, call it 2500/y repayment

13 years = ~30k repayment PLUS whatever repayment oon the mortgage so at least another 20% off, so theyd only need a ~60% remortgage tops. No problems.

There would be no issue with them remortgaging if theyd paid down the mortgage.

 

Indeed, got to be IO so they're stuck in negative equity.

One line stuck out in this for me 'they're being told they can't afford to pay less'. No, they're not. They're being told the value of their property isn't adequate security for the size of mortgage they need. I bet they didn't give a flying fuck when they were spunking their 30k additional loan on holidays to Turkey and looking down their noses at renters. I've been there, they were awful times for people like me, 2nd class citizen.

Well here we are, 13 years down the line - I've got 10 years left on my mortgage at a mammoth rate of 2.08% and he's still in negative equity. So to him, and everyone else that partook: welcome to reality, nobheads.

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39 minutes ago, Roger_Mellie said:

I read this - £120k mortgage with a loan on top. Northern Rock, 125% LTV, IO. What an amazingly bizarre time, and of course we're still feeling the ripples from those few years of absolute madness. 

 

Indeed, got to be IO so they're stuck in negative equity.

One line stuck out in this for me 'they're being told they can't afford to pay less'. No, they're not. They're being told the value of their property isn't adequate security for the size of mortgage they need. I bet they didn't give a flying fuck when they were spunking their 30k additional loan on holidays to Turkey and looking down their noses at renters. I've been there, they were awful times for people like me, 2nd class citizen.

Well here we are, 13 years down the line - I've got 10 years left on my mortgage at a mammoth rate of 2.08% and he's still in negative equity. So to him, and everyone else that partook: welcome to reality, nobheads.

However.

Dont you just know that they will be bailed out from the pit into which their fecklessness has dug them and it will be funded by your taxes?

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29 minutes ago, eight said:

To be fair, Fletch off Holby (where coronavirus remains but a dream) could barely get enough time off work to go to his own prostate cancer operation.

So it's not like they don't deserve the respect they're getting.

And Charlie after 32 years as Senior Nurse of a large casualty department can only afford to get to work on  a bike, 7 years into his State Pension supplement to boot ( he's 72). Shockingly the portrayal of a leftist nurse and darling of the Liberal Establishment, "Don't let the bastards get you down" only warranted a 400k salary a few years back from the BBC. I think he should sue.

 

https://www.express.co.uk/celebrity-news/1094253/Casualty-Charlie-actor-Derek-Thompson-salary-BBC-latest-news-update

 

Edited by crashmonitor
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44 minutes ago, Frank Hovis said:

However.

Dont you just know that they will be bailed out from the pit into which their fecklessness has dug them and it will be funded by your taxes?

I don't know if they will. There's not actually anything to bail out.

What could you do for them? Force a bank to give them the same rate as someone with 50% LTV? I don't know if that would achieve much. Mind you, that's never stopped the government before.

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I love this bit:

"While the nation clapped for key workers every Thursday evening in admiration, in fact we have been risking everything not just to fulfil our vocations but also because we were forced to work round the clock just to keep a roof over our heads."

Two kids, one and three. How many hours a week so we think she's actually doing? My guess is 16 hours a week. With the Hubby doing 35 a week on an hourly rate i.e. not salaried and not running a powerstation.

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4 minutes ago, Roger_Mellie said:

I don't know if they will. There's not actually anything to bail out.

What could you do for them? Force a bank to give them the same rate as someone with 50% LTV? I don't know if that would achieve much. Mind you, that's never stopped the government before.

For starters I will be clear that in order to have properly functioning markets those who make the worst decisions should be allowed to fail.

Northern Rock should have been allowed to fall for example.

 

The government, generally but especially now, wants housebuilders to build a lot of houses and people to buy them.

Now that we have left the EU the provision of state aid becomes easier and the government can either reduce the capital allocation required by banks against mortgages or, gulp, act as a guarnator so taking out the risk premium.

They can make a condition of doing that that key workers receive cheaper mortgages.

There is precedent in that there have been a couple of schemes, neither very successful tbh, to get housing associations to build key worker accommodation to provide them with cheaper rents.

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1 minute ago, Long time lurking said:

If the article is correct and she is a registered nurse and her husband is even involved with just the maintenance rather than "running" the power station they would not be far short of having a £60K joint income at the very least  

Feckless 

Easily. 

Just checked, she's an ODP which is 25-30k depending on experience. Hubby will be on at least the same. 

If you can't make that work then there really is no hope for you.

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18 minutes ago, Frank Hovis said:

For starters I will be clear that in order to have properly functioning markets those who make the worst decisions should be allowed to fail.

Northern Rock should have been allowed to fall for example.

 

The government, generally but especially now, wants housebuilders to build a lot of houses and people to buy them.

Now that we have left the EU the provision of state aid becomes easier and the government can either reduce the capital allocation required by banks against mortgages or, gulp, act as a guarnator so taking out the risk premium.

They can make a condition of doing that that key workers receive cheaper mortgages.

There is precedent in that there have been a couple of schemes, neither very successful tbh, to get housing associations to build key worker accommodation to provide them with cheaper rents.

I wonder what would happen if you switched them to a lower rate but put them on repayment rather than IO and shortened the term so the monthly repayments matched the current. You can't say fairer than that. Having said that, they've already paid off a chunk of the interest, so you'd have to factor that in. 

I bet if you did the calcs, switched them to a repayment at a good rate, fix it for 2 years, and set the term to match the current payments they'd be able to clear it in 20 years. Which would give them a 33 year term overall. Not bad, really.

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I've just checked his Facebook. The pair of them can get fucked with their bleating. 

Do they look hard up to you?

https://m.facebook.com/profile.php?id=502112875

I mean, I'm sure they're very nice people, but they really don't look like they're enduring any kind of hardship, or indeed, working round the clock.

Where do the BBC dig these people up from? Are they really the most needy people they can find?

Edited by Roger_Mellie
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4 hours ago, spygirl said:

https://www.bbc.co.uk/news/business-53380724

Melissa Antwhistle has been dressing in protective equipment every day for round-the-clock shifts on the frontline at Scunthorpe general hospital, including in the intensive care unit.

But financially, she feels far from supported.

Speaking between shifts, she said: "Many mortgage prisoners are key workers like my husband and me. Doing this job with all the stress of Covid and also looking after our children aged one and three, we could do without the extra stress and anxiety of this financial nightmare.

Well done. Loads of detail, bar what she does.

Her husband Kevin - also a key worker who runs and maintains a power station on the south Humber bank - took out a £120,000 mortgage with Northern Rock in 2007 at 100% of the value of his house with an unsecured loan on top.

Two adults,, working.

Even with a totally unambitious £100/m/head, call it 2500/y repayment

13 years = ~30k repayment PLUS whatever repayment oon the mortgage so at least another 20% off, so theyd only need a ~60% remortgage tops. No problems.

There would be no issue with them remortgaging if theyd paid down the mortgage.

These people are fucktards.

 

 

Well ... lets assume it was full on NR125, so he'd have borrowed ~150k - 120k mortgage + 30k personal loan.

Even assuming its a repayment - and I think NR125 were all repayment, even it it was 25-30y mortgage.

Say 25y. They would have barely paid back the person loan.

Im guessing the house price is  at least10% down too.

They cant remortgage until they throw some hefty extra payback on the loan.

Thats their problem.

They are not mortgage prisoners. They are financial morons.

They should have gone bust in 2008. They could have restarted by now.

 

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4 hours ago, Frank Hovis said:

What?  What?  Why in the second line are we immediately onto front line workers and the latter day saints that are nurses (my apologies to any nurses who are as sick of this beatification by media as I am)?

Does the BBC simply want exemption for them whilst all the others - private sector workers and self employed - can go whistle?

And as key workers they have lost zero income in this.  No 80% of salary for these guys their jobs have just continued unchanged.

If anything the people who need the help are specifcally not the "Thousands of frontline workers, including nurses and hospital workers" but everybody else because they will be the ones who will have lost income; especially the self-employed many of whom will have seen their earnings crash.

 

Also add in the fact the "front line workers" have had access to key worker properties at "reduced value" for many years.

The block of flats I live in for example was either all or part key worker, the guy in No.6 (I'm in No.5) paid £150k for it about 4 years ago, at the same time one non-key worker one went for £300k

From the article...

Quote

Instead they moved on to the high standard variable rate where they paid interest rates of between 6% and 9%, compared to loans of less than 3% had they been able to re-mortgage.

Melissa and Kevin have been paying £780 a month on their Northern Rock loan, compared to £420 or less if they could re-mortgage. But because they borrowed more than the value of the property, the regulators' affordability rules now say they can't re-mortgage.

Everybody is told mortgage rates go up and down and you should budget and be prepared to pay a significantly larger percentage rate than you are signing up for.... we have had an unprecedent period of low rates so many people have go lucky.

The message above is they stretched themselves massively... tough shit.

I actually doubt they can't remortgage... more like they haven't paid enough off to be able to remortgage, totally different thing.

 

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42 minutes ago, Roger_Mellie said:

I've just checked his Facebook. The pair of them can get fucked with their bleating. 

Do they look hard up to you?

https://m.facebook.com/profile.php?id=502112875

I mean, I'm sure they're very nice people, but they really don't look like they're enduring any kind of hardship, or indeed, working round the clock.

Where do the BBC dig these people up from? Are they really the most needy people they can find?

Both studied Interior design at Teesside Poly which is where I assume they met.

Should be a real help with their current careers, bioth of which they started a loooong time after getting the mortgage.

Shes an ODP with is a n operating theatre gofer i.e. very low skilled, fetch n carry job.

 

 

 

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Quick google.

https://www.which.co.uk/news/2019/10/theres-no-way-out-pilot-shares-his-mortgage-prisoner-nightmare/

The deal Helen and Greg took out from Northern Rock was called a ‘Together’ loan. It included a £30,000 unsecured loan on top of a mortgage for 95% of the property’s value. Greg says the loan was mostly put towards his pilot training. ‘It’s very expensive to become an airline pilot,’ he told us. ‘They’d lend you 125% of the property value, but £30,000 of it was an unsecured loan, not part of the mortgage.’

If Greg’s property had continued to grow in value, he would have been able to sell it to pay off the mortgage when his term ended in 2030. But it didn’t work out that way. ‘The market crashed and the value of the property decreased significantly,’ says Greg.

‘And it hasn’t changed an awful lot between then and now.’ Greg and Helen’s property was valued at £135,000 when they bought it in 2007.

When they got it valued in April this year, it was worth £120,000. So even if they did sell the property in 10 years’ time, they would still owe £15,000 to NRAM, the current owner of their mortgage (more on this below).
 

So .. .return of -15k in 13 years. A lesson for the HTbers there.

This bit I dont understand. hes either a moron or a liar

Approximately every two years, someone from NRAM calls Greg. They ask him – Greg paraphrases – ‘Are you aware that repayment isn’t being made, as your mortgage is interest-only?’

Every time, Greg tells them that he is aware. He also asks if he can switch his mortgage from interest-only to repayment over a new, longer term, thereby allowing him to slowly pay off the balance.


‘I’ve never had an issue with affordability, ever. That’s never been the case,’ Greg says.

And in fact, a new repayment mortgage could be cheaper than the current interest alone, if Greg was given a better rate. But NRAM informs Greg that it cannot change the terms of his mortgage because it doesn’t have a lending licence.

This is easy to understand. Its a cloded book you will nto get another mortgage mortgage from them.

If he were to switch to a repayment mortgage with a new 25-year term and an interest rate much lower than his current 5.03%, Greg says, ‘The repayment could be the same, except the balance would be getting paid off. The house would actually be getting paid off rather than being a ticking time bomb in 10 years’ time.’

5% uis not a huge fucking rate. Sure its not 2% that youd get with 40% down. But its not far off over banks SVRs.

If afforabdiltiy is not an issue then he needs to be repaying the fucking IO mortgage.

Fucktard

So when their family grew too big for the small three-bed property (‘Bedroom number three is a box room, it’s tiny,’ says Greg), they had a problem. ‘We were running out of space. It was very difficult because we were genuinely stuck in this house. We wanted to move for years, and we couldn’t get out. ‘We couldn’t sell it or get a new mortgage because we’re in negative equity.’ In 2015, the couple decided to let the house to tenants, using the rental income to cover the mortgage interest payments, and buy a larger home with a new mortgage from Barclays. Greg has also paid off his original £30,000 unsecured loan by taking out another loan from Barclays. ‘I’m an “accidental landlord”. It’s not a business for me, it’s not something I want to do. It’s something I had to do because I can’t sell the house, because it’s not worth as much as the mortgage.

 

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22 minutes ago, spygirl said:

Both studied Interior design at Teesside Poly which is where I assume they met.

Should be a real help with their current careers, bioth of which they started a loooong time after getting the mortgage.

Shes an ODP with is a n operating theatre gofer i.e. very low skilled, fetch n carry job.

 

 

 

The other odd thing is where exactly this house is.

They live and work in North Lincs, but the house with the mortgage on it is almost certainly on Teesside. Are they renting it out? It's like all these BBC stories, they get curiouser and curiouser the more you dig.

 

Quote

So when their family grew too big for the small three-bed property (‘Bedroom number three is a box room, it’s tiny,’ says Greg), they had a problem. ‘We were running out of space. It was very difficult because we were genuinely stuck in this house. We wanted to move for years, and we couldn’t get out. ‘We couldn’t sell it or get a new mortgage because we’re in negative equity.’ In 2015, the couple decided to let the house to tenants, using the rental income to cover the mortgage interest payments, and buy a larger home with a new mortgage from Barclays. Greg has also paid off his original £30,000 unsecured loan by taking out another loan from Barclays. ‘I’m an “accidental landlord”. It’s not a business for me, it’s not something I want to do. It’s something I had to do because I can’t sell the house, because it’s not worth as much as the mortgage.

How is this even possible?

Paid off one unsecured loan with another unsecured loan and managed to get a deposit together for a second house whilst letting the first out, all the time in negative equity. And this bloke is claiming he's a victim?

Bloody hell.

Edited by Roger_Mellie
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4 hours ago, spygirl said:

Quick google.

https://www.which.co.uk/news/2019/10/theres-no-way-out-pilot-shares-his-mortgage-prisoner-nightmare/

The deal Helen and Greg took out from Northern Rock was called a ‘Together’ loan. It included a £30,000 unsecured loan on top of a mortgage for 95% of the property’s value. Greg says the loan was mostly put towards his pilot training. ‘It’s very expensive to become an airline pilot,’ he told us. ‘They’d lend you 125% of the property value, but £30,000 of it was an unsecured loan, not part of the mortgage.’

If Greg’s property had continued to grow in value, he would have been able to sell it to pay off the mortgage when his term ended in 2030. But it didn’t work out that way. ‘The market crashed and the value of the property decreased significantly,’ says Greg.

‘And it hasn’t changed an awful lot between then and now.’ Greg and Helen’s property was valued at £135,000 when they bought it in 2007.

When they got it valued in April this year, it was worth £120,000. So even if they did sell the property in 10 years’ time, they would still owe £15,000 to NRAM, the current owner of their mortgage (more on this below).
 

So .. .return of -15k in 13 years. A lesson for the HTbers there.

This bit I dont understand. hes either a moron or a liar

Approximately every two years, someone from NRAM calls Greg. They ask him – Greg paraphrases – ‘Are you aware that repayment isn’t being made, as your mortgage is interest-only?’

Every time, Greg tells them that he is aware. He also asks if he can switch his mortgage from interest-only to repayment over a new, longer term, thereby allowing him to slowly pay off the balance.


‘I’ve never had an issue with affordability, ever. That’s never been the case,’ Greg says.

And in fact, a new repayment mortgage could be cheaper than the current interest alone, if Greg was given a better rate. But NRAM informs Greg that it cannot change the terms of his mortgage because it doesn’t have a lending licence.

This is easy to understand. Its a cloded book you will nto get another mortgage mortgage from them.

If he were to switch to a repayment mortgage with a new 25-year term and an interest rate much lower than his current 5.03%, Greg says, ‘The repayment could be the same, except the balance would be getting paid off. The house would actually be getting paid off rather than being a ticking time bomb in 10 years’ time.’

5% uis not a huge fucking rate. Sure its not 2% that youd get with 40% down. But its not far off over banks SVRs.

If afforabdiltiy is not an issue then he needs to be repaying the fucking IO mortgage.

Fucktard

So when their family grew too big for the small three-bed property (‘Bedroom number three is a box room, it’s tiny,’ says Greg), they had a problem. ‘We were running out of space. It was very difficult because we were genuinely stuck in this house. We wanted to move for years, and we couldn’t get out. ‘We couldn’t sell it or get a new mortgage because we’re in negative equity.’ In 2015, the couple decided to let the house to tenants, using the rental income to cover the mortgage interest payments, and buy a larger home with a new mortgage from Barclays. Greg has also paid off his original £30,000 unsecured loan by taking out another loan from Barclays. ‘I’m an “accidental landlord”. It’s not a business for me, it’s not something I want to do. It’s something I had to do because I can’t sell the house, because it’s not worth as much as the mortgage.

 

So, did he become an airline pilot or what?  I know its not popstar wages these days but its not minimum wage either.  He must have earned something reasonably decent in the last 10 years. 

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