Mortgages

[Deleted User YDKXO]

Re: Frittering away?!!

Could'nt agree with you more. Large plastic boats have been a brilliant investment compared to pensions and shares, at least my pensions and shares anyway although it seems jfm has been making money at my expense

 

[c_j]

Re: lecture on mortgages

jfm:

Its true, I am found out. I am not an expert in the retail market but I am not in the retail market and my understanding of the deal I suggested with Clydesdale is that it is non recourse. I suppose the other thing which I took for granted was the fact that as I suggested in another post the equity in the loan should be high, and although I did not spell it out, I consider 33 - 50% of any purchase price could be lost, so don't do it if you cannot afford to loose it should be the motto.



CJ
chris@stone.uk.com

www.stone.uk.com

 

[jfm]

is non recourse finance really available?

Hmmmm. Would be interested if you know of non-recourse finance for toys. I guessed it doesn't exist, but if it does I'll stand corrected and borrow lots of it. No doubt the lender would insist on a pretty conservative loan to value ratio. Nonetheless, if things went desparate and you had a 300k loan on a boat worth 150k you could just hand the boat keys over to the lender and tellim to sail into the sunset, literally.

So, can non recourse borrowing be obtained at sensible rates?

 

[Guest]

Re: Frittering away?!!

Oooh, how can you say that? Just last weekend we had some friends come over, and we all had a great time looking at my pension plan. We intend to take the ferry to Jersey in the spring, and look at some annuities there. Far more fun to be had in pensions that boats, surely?

 

[c_j]

Re: is non recourse finance really available?

It looks like I was wro............
try again. Looks as if I my perception of the situation regarding non-recourse finance was not as I had imagined. It appears that we have had it, but it is not generally available. In fact it would not be available today. The situation regarding (which I am sure you will be aware) HP is that generally the first course of action (when all else has failed) by the owner of the goods is to grab them back. If the House is in joint names and the HP in one name then the lender is unlikely to pursue the house. In general unless they have been totally stitched up the HP companies tend to write off this type of debt balance.

different rules apply with sums under £25k

The answer? Get a big boat, you could be dead next year.



CJ
chris@stone.uk.com

www.stone.uk.com

 

[tcm]

Re:careful tho

You may unfortunately find yerself NOT dead!

Of course, with boat etc i was assuming you wd just use the cheap money from mort instead of less cheap money from boat finance. Not that you wd bortrow so much that either is "on the line" and of courase if you have money and house halves in value, the mort people want the money, not the poxy house.

 

[tripleace]

MORTGAGES / INVESTMENT

If you mortgage home and not boat.

1. boat can be sold at any price to help if a disaster hits

2. If you default on boat finance, they will come after you and you both can be made bankrupt.

3. Having a mortgage and a boat loan means most assets have loans against them and in my opinion closes some options in the future

4. Just because most home mortgages are over hundreds of years does not menas they have to be

5. A further advance or remortgage can in most cases be split into two loans. It then is easy to repay one at the rate you want so the loan is paid off in say 5 or 10 years. YOU are in control.

6. If you elect item 5 and life goes wrong you can very simply revert to a longer repayment period. without having to talk to a marine finance house

example: Please house mortgage can I lower my payment to the minimum you have already agreed. I have up until now been voluntarily being paying you more than you wanted : answer YES

or

Please marine finance, I have financial problems and would like to extend the loan over a longer period : answer fill in this form and we will think about it.



<A target="_blank" HREF=http://www.boating-ads.co.uk> Triple Ace Link</A>

 

[hlb]

Re: MORTGAGES / INVESTMENT

I prefer to be self financing. Then I have no one to answer to. Ok it might mean that the boat is not as new as it might have been. Put at least I can sleep at night even though my shares and pension fund has halved. Closely to be followed by the housing market. The industrial and many other industries being belly up already. Still got one wheel on the wagon!!

<font color=blue> Haydn

 

[tripleace]

Re: MORTGAGES / INVESTMENT

I'm with you personally,

cheaper boat thats paid for and can be kept in all climates

<A target="_blank" HREF=http://www.boating-ads.co.uk> Triple Ace Link</A>

 

[Jerbro]

Thanks for all the useful info. I'm now truly terrified. Booked into private clinic to sell kidney. Wish me luck.

Jerbro
====
Click here for <A target="_blank" HREF=http://www.btinternet.com/~jerbro> My boat pics</A>

 

[petem]

Re: MORTGAGES / INVESTMENT

My sentiments exactly. I would also like to think that if you couldn't make your £1000 p.m. mortgage payments and got called in to the bank and told them that you were in the process of selling your (unemcumbered) £250k boat that they would probably give you a bit of breathing space (like a few years), rather than reposess.

Of course the best solution is to remortgage a second property (best of both worlds then).

 

[petem]

Of course if they reposess the house at least you'll be left with the boat!

 

[tcm]

the awful truth (see jfm\'s posts too) +boatshare

Ah, not so. Many people in the early nineties did this and though oh bugger, thiv repo'd the house, ah well, that's that.

But no. When they can't/won't pay, the first inthe queue rule comes in, and first off is they sell the house. The buildo repo's the house, and flogs it dirt cheap, as fast as poss to someone at a price at which it doen't need a survey. Eek. So, house gone down by 15% but it gets tipped at auction for 35% less...and the evicted ex-owner still owe the money - with a v tough route getting another mortgage to buy into the housing ladder to pay it all back. Bugger!

THIS is why you have to very careful bout peeps borrowing heavily elsewhere eg on house and "producing" the money to buy a share of the boat "unencumbered". Cos if they are part owners then that's another of their assets, which they will be compelled to sell asap.

Jfm may know more nasty details...

 

[petem]

Re: the awful truth (see jfm\'s posts too) +boatshare

but what was worse in the 90's was that peeps paid for MIG's, then had house reposessed. MIG's paid out then MIG insurer still pursued defaulter for unpaid debt.

It is a good point you make ref Boat Share. I assume you are in the same legal positions as a Partnership. Will discuss this with JFM when/if he gets in touch.

 

[petem]

Boat share

Not quiete as doom and gloomy as you suggest. If one of the partners needs his share of the cash (i.e. if he's got the bailiffs after him) then surely you buy him out (at a reduced sum) and resell his share?

 

[jfm]

Re: Boat share

No, not at all petem. That's not how the law works on boat shares. See other post on boat shares in about an hour!

 

[jfm]

Re: the awful truth (see jfm\'s posts too) +boatshare

Agree entirely. The house we currently live in was a repo. We bort it off a well known bldg society in early 1990s when negative equity was de rigeur. What TCM says is true I think. The owner had a mortgage and MIG, so the BS was only on risk for 75% of the original house purchase price. The house wasn't attractive partly becuase it had 9 families living in it - the owner had converted to bedsits to get giro cheques to try to survive finacially. (It's not a big house - they were tightly packed). All easily fixed of course by carpenters/builders.

I dealt directly with BS person. He said he wanted to get 60% of the 75%, and he would write off the rest and claim on MIG. So I offered him that price, which was absurdly low. I would have paid 25k more if they had insisted. I then added lots of conditions, like 3 months between xchange and complete, access for builders to fix it, and a guarantee from the BS of 110% of my money back if there was not vacant possession on completion (if the 9 families returned). etc etc. They agreed everything.

Point is, they were only interested in getting their targetted sum of money and closing the file. They were not interested in getting the best price so as to minimise the debt of the guy who got repossessed. He would have done much better to control the sale himself instead of having everything done by the BS who were of course only looking out for their interests. But, becos of the mortgage, he didn't have the choice.....

 

[ArthurWood]

I agree with you, Haydn NM

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