Does this financially ring true?

[ManyBooksLittleTime]

We bought our house nearly 20 years ago for 245k. Now, 19 years later, we still have 203k left on the mortgage. I know the first years is basically paying interest , but only 42k in 19 years??? We have had good interest rates too.Also, my husband reckons it will go down to 181k by August next year. Please can soneone more astute with finance let me know if these numbers can be right?

Actually I was just rereading rhe ops posts and the husband might not be lying it might be she’s just no clue and paid no attention.

what makes me think it is these statements..

He said that if we bought a house for 245 at 4 per cent it's the same as buying a house for 356k and that we have been paying off the difference

this tells me it’s interest only, he’s trying to explain to her the interest was what took it to 356 and that’s what they have being paying, that it wasn’t a repayment mortgage.

we started getting into debt 20 years ago paying for childcare for me to work.

I suspect they had a lot more debt that]n she knew and he’s increased rhe mortgage to pay for it as they have been living above their means. So when the debt became too much they remortgaged and added to the mortgage and used the money to pay the debt off.

I'd be really concerned if this was me.

How did you not have sight of any of the statements over this time?

Why is your husband being quiet (shifty?) about this?

Hasnhe been borrowing more money without your knowledge.

These figures just don't make sense.!

What he thinks he's borrowed is immaterial.

Please contact the company direct and ask for a full statement to be sent to your email only.

Continuing to believe what he tells you /or beleives... Is putting you in a risky position!

Their debt is close to maturity.

Note, the OP's DH is looking for NEW mortgage lenders to bail him out. Maybe he's as economical to them with his payment history, as he is to OP.

Every other mortgage lender is frantically backpedalling away from risky new borrowers. I'd have thought DH is well and truly in the "not with a bargepole" category.

We had around the same a few years ago and in 5 years ours is down to 210k on a 35 year mortgage. There is something very suspicious going on. Big red alarm bells for me

Yes they would! Paid £70,000 for my house with a £66,500 pound interest only mortgage. 25 years later the house was worth £350,000 - that’s equity of £283,000. We could have sold our four bedroom house, paid the mortgage off and bought something smaller for £250,000 outright. As it was we paid off the mortgage with SOME of the proceeds of an endowment policy and stayed in this house.

You need to switch to a repayment only mortgage op. You can switch brokers to see if you can get a better deal. I used London and Country, on recommendation from many here. I got a really good 5 Yr fixed rate mortgage with Nationwide via L&C.

www.landc.co.uk/

I do think it is important at this point to be careful not to indicate to the lender that there might be problems arising. Make an excuse why you need the paperwork again or get an IFA to do it for you.

We got a mortgage in the early 1990s, endowment (interest only) never switched or remortgaged. I'm not incredibly clued up about mortgages. I'm posting this to see if anyone more knowledgeable of the markets then will have their memory jogged.

I knew at least one person who had this type of mortgage. You borrowed to buy a house and got the mortgage. As the value of the house rose, you could draw on the increase in value via the mortgage without a remortgage or revaluation. So if you bought a house worth 100k, got a mortgage for 95k, then house price inflation meant the house was supposedly now worth £150k, you could draw on or borrow the extra 55k at mortgage rates rather than personal loan or credit card rates.

When someone tried to persuade me to get this type of mortgage, I think I visibly recoiled and this type disappeared quite quickly. I think it was with the Woolwich, but my memory is rubbish these days. However, could it be something like this, where the money just bleeds out drip by drip?

There were other types from, I think, Virgin where the interest rate was linked to how much savings you had and that sort of thing could perhaps have also had an impact. And there were the 105% mortgages around as well at one point, which I thought was a disaster waiting to happen.

OP - I don't know if my ramblings are useful, but I think you need to get copies of absolutely everything and sit down with someone. You need to find a clear starting point and track from there. I hope that it's all sorted out soon.

My friend is the only name on her mortgage. She can't tell me what type of mortgage it is, what the interests rates are etc etc. she has no clue. The payments go out of her bank account, her bank account that she actually doesn't know the online password for.

What I do know though having done some digging via the internet is that she is on a buy to let mortgage.

She let her ex mortgage advisor husband get his dodgy mate to set her up with a buy to let mortgage. For a house they have always lived in.

I've tried telling her. I've tried helping her. I've tried warning her she will be the one in the shit. But she will not accept that her slug of a husband had been conning her for the entire length of their 14 year marriage.

He just hands her paperwork and she doesn't even read it just takes his explanation of what it is.

It's tragic.

For clarification, definitely say something like "my husband isn't sure where he's put the documents and we're doing a review of our finances" which sounds sensible and believable. Don't say "my email ONLY". Maybe don't give any reason at all unless explicitly asked. Just give them an email address or an IFA's address, without over explaining. No reason why it wouldn't be you taking the lead on the next remortgage even if previously it was your husband.

If you give the lender cause for concern it might affect remortgaging with them next August and if other lenders won't touch it then at the new interest rates and affordability criteria then you'll really be in trouble. Or rather 6 months beforehand as you should be getting your ducks in a row for the remortgage before August.

But stew this over in confidence with a professional. There may be specialist lenders who can give you the right deal for you that an IFA can access for you both. There often are.

Either you have had an interest only mortgage for some of the time or you have increased your borrowing when you remortgaged by more than £50k.

Was your original mortgage for £245k or was it less than this as you had a deposit?

She let her ex mortgage advisor husband get his dodgy mate to set her up with a buy to let mortgage. For a house they have always lived in.

I always thought BTL mortgage rates were higher. Why on earth would he do that?

@ChickenyChick
Do you understand compound interest?
Because interest on a mortgage is not compound. Not on repayment and not on interest only either.

Because it was the only way she could get a mortgage in her name only on a minimum wage salary. He was busy keeping his name off it in order to a different dodgy deal on something else in his name which he then took all the money on and got himself made bankrupt.a

He's conman a fraud a crook...she won't listen. She's not allowed to talk to me so she rings me in secret. I hate him so much.

On the same page as you. OP hasnt taken any part in finance for 20 years. Its a bit harsh to suddenly call the DH a liar. Who knows if he hasnt tried to bring up the subject of costs and spending over the years and he has tried his best to manage it. We dont and until the OP sheds some more light its down to her to follow lots of great advice and clarify the situation with actual facts and figures

@nomdegrrr1 my parents had that kind of off set mortgage from Virgin and it was an utter financial disaster. From what I remember your savings interest was supposed to help pay off your mortgage quicker.

But for some reason it meant you could access the account and basically use it like a credit card borrowing again what you had already paid off.

So say you had a 200k mortgage and you paid off 50k you could then spend that 50k again and be back at 200k without having to remortgage or talk to anyone. They spent all of the 90s and some of the early 2000s doing exactly that.

It sounds like OP might have that kind of product which they’ve gotten into trouble with or an interest only mortgage. At least they still have some time to rescue the situation.

Because it was the only way she could get a mortgage in her name only on a minimum wage salary. He was busy keeping his name off it in order to a different dodgy deal on something else in his name which he then took all the money on and got himself made bankrupt.

That sounds confusing and a fucking mess.

@PerfectlyPreservedQuagaarWarrior oh it's a complete mess. She had been completely shafted but refuses to accept it or deal with it. I suspect the current mortgage rates issue is going to be the catalyst for my friend. If the rates go up she is going to be buggered.

I shall just wait to pick up the pieces when it does. She can come live with me. he can fuck of to the far side off fuck.

Your dh doesn't sound as if he knows what he has been doing and you have been sticking your head in the sand with a £200k+ debt and not caring how it was working. I am not even going to hazard a guess.

Your standard mortgage and some of the basic options available are not rocket science, they are the biggest financial commitment and risk most people have and not being aware of how they and your own work is for the last 19 years is fucking stupid very naïve. It is time you educated yourself with the many resources available and then work out what on earth has gone on.

Everyone telling op she "must" have had a deposit on the house, in 2002 there were 100%+ mortgages, so no, she didn't necessarily have a deposit

Op, as others have said, this is dodgy as fuck. I think you're probably on interest only currently, as your current payments are not in line to repay your mortgage by the end of the term, which on a repayment mortgage is not possible. Either that or your husband has extended the term and not told you.

I will echo pp that you need to stop listening to your husband as he's either a complete idiot or lying through his teeth. Get all the info you can and find an independent financial advisor to talk it all through with you

I think pp need to stop criticising @ManyBooksLittleTime as many couples have one partner trusted to take care of the finances and nothing wrong with that.

Why people jump to the conclusion that her do has been doing something deceitful or malicious is just plain projecting and goes
with the many misandry posts on here.

Some men are wankers yes and some women can also be horrible but to generalise when you only know 1% of the story on here is disturbing and can’t be helpful to people who genuinely need help and advice.

Why don’t more MN not just give the benefit of the doubt, it’s not like he’s being accused of having an affair.

For example how do you know the DH isn’t self employed and used the equity in the home at times to support there business which in turn provides the finances for the family? May not be the case but who knows when on forums like this you only get a tiny bit of the story.

@ManyBooksLittleTime good luck putting your mind at rest and I’m sure you will all be fine, or as best as you can be as most of us are I’m the same boat now worrying about mortgages

I think pp need to stop criticising @ManyBooksLittleTime as many couples have one partner trusted to take care of the finances and nothing wrong with that.

Disagree with this. It is one thing to trust your partner to pay the mortgage every month but there is no excuse to legally sign up for and not to know about, have an opinion on, or even have any interest at all in a £200K+ debit in your name.

@ManyBooksLittleTime lime other PPs this just doesn’t add up. I used to have a £200k mortgage and pay for it ALL myself (no high earnings partner). In 9 years with a capital + interest repayment scheme the capital is now reduced to almost half the amount. And I’m not paying anywhere near the monthly amount you are.

There’s something seriously wrong here.

And ANYONE who leaves all the finances to their partner is a fool, frankly.

Well we have to agree to disagree as you do not know the OP her partner or her life circumstances. I know lots of people who don’t care and trust their spouse to plan on there behalf.

Entrepreneurs take risks that can work or fail and do not take risks on there own as they may be married with family.

I was a business owner and on many occasions could have went bankrupt but sold my business for a lot of money.

When I had the company my exw enjoyed the trimmings of the wealth and took the risk knowingly or not. Some people choose to be blind or oblivious or trusting