Mortgage Lenders Are Still Ripping You Off

when my home was re-possessed in the early 90's crash I had insurance protection on my mortgage. This, I thought, protected the lender from losses incurred. Several years later the insurance company came after me & my wife for the sum they had paid out to my lender - so beware - not only are you paying out to protect your lender, but then you have the insurance company coming to get what they had paid out as well.

I don't get it - In most cases except for a negative equity situation where you have a positive equity e.g. house value £100K, Outstanding Mortgage £90K, If you default, your house is repossessed and sold. Assuming that the value of the sale is not under-valued to expidite a sale, it would seem to me that the mortgage company stands to recover enough money to cover the debt with money to spare to cover reasonable fees and a reasonable amount of interest. There could be money enough to return some to the client. It seems to me that the need for HLC and other charges are pointless and not needed except to help line the banks pockets and to do this at the cost of the client. Banks are required to help clients in times of difficulty, providing the facility to alter the mortgage to assist in times of difficulty, not exact some measure petty of revenge for failing to pay a relatively small amount of money compared to the overall mortgage. It's not like they are going to go bankrupt anytime soon if the occasional client misses a few payments. Of course if they are stupid enough to make significant loans to ultra high risk customers, why should the low-risk, mature customers have to pay for the banks mistakes

Isn't it time the that banks be subjected to much more strict rules on how they are allowed to operate.

Banks are acting very irresponsibly in that they are not only charging HLC but loading the interest rate. That to all intents and purposes is double insurance - which is illegal.
Also, I know of three cases where a financial institution withdrew the offer of funds AFTER the exchange of contracts - even although the amount was ring fenced between the broker and the lender.
Now solicitors are getting jittery because they are seen acting on the clients behalf and entering into a contract to pay money for a house, but the mortgage is then withdrawn.
The contract is between the buyer and vendor. Naturally the banks don't enter into any contracts. Read the small print.
The financial institutions have totally flipped from greed to fear and still only care about one thing, namely themselves and their stockholders.
In ten years they have gone from increasingly irresponsible lending (and poorly judged derivative trading) to bureaucraticly gumming up the works.
Someone better break the practice because every year there are at least 500,000 people who need to move house for hatches, matches, despatches, promotion, demotion, job relocation....and repossession.

That's why its called rip off britain. The amount interest charged on our mortgages should be enough to cover the few defaults each year.
Its bad management of FUNDS waste,a bit like the goverment with our taxes,the amount of tax we pay should give the goverment no need to loan money.
I tar them both with same brush-RIP OFF-BRITAIN.

The answer to the above is quite simple; banks are run and financed by people that could not possibly relate to Mr and Mrs Average. The investors, share holders and the various other money lenders, earn billions. The resent BBC documentary on the Super Rich, exposed most of the money loaner’s game play making it very clear to all that the banking system is exploiting those in most need. Money is energy and life force, so I see the greedy few that are absorbing the life force from us as a form of parasite or vampire. Maybe people ought to look into alternatives to money like the LETS system? Credit unions are also worth a look. Renting in the UK is ridiculously expensive and can often cost more than a mortgage, renting abroad is FAR cheaper and value for money in room size is more realistic, so a lot of people in France and Germany, prefer to rent and spend their surplus money on living! So it is ‘double’ rip off Britain, in that you pay vastly over the odds to either rent or buy. Exploitation seems to be the name of the game played by a greedy few.

Personally I would never consider taking on a mortgage with less than 10% deposit, and I'm not surprised that the lenders are double dipping, it's what they do.

We left the UK in December as we'd had enough of working our butts off only to have less and less disposable income, seems everyone (businesses) wants something for nothing in the UK.
We rented our house out and was amazed that we had to:
1 - ask permission from our mortgage company
2 - pay 100 quid for the pleasure
3 - once approved pay an additional 1% interest on our mortgage!
4 - even if we stop letting our house the additional 1% interst stays until we move back into the house permanently!
When it comes to taking the pi$$ and screwing you over the UK seems to have well and truly nailed it. I've doubled our ability to pay the mortgage and somehow we get penalised for this?!
Personally I'd prefer to cut our losses and sell the house and cut all financial ties with the UK, I'll never live there again.
I've lived in countries with similar levels of tax BUT unlike the UK you actually get something for you money, like decent roads, schools, healthcare (nothing like the donkey that is the NHS).
My advice... leave, the grass is greener on the other side - not to mention sunnier and drier too.

The insurance companies won't be running to tell house owners that they are over insured when the value of one's property falls.

That's because the insured sum is not the market value of the property but, in general terms, the cost to re-instate/rebuild the property including demolition and site clearance, if required. The changes in the sum insured are related to building cost inflation and not to house price inflation.

Lenders will most definitely be interested if you break the terms of the contract by under-insuring the property which they are using as security fo the loan.

Cheers!

1. Payment Protection insurance only benefits the lender, why should the borrower get it? Especially when the insurers harrasses you when you are solvent again. So you pay the premium, and then you pay the payout, what kind of insurance deal is that? Unfair terms.

2. Rebuilding cost does not repay the Mortgage, and the insurer is just going to get the lowest quote cowboy to rebuild a shack that is nothing like what was burnt down.

Everything is twisted into an excuse to squeeze more money out of you. If you do what the system says, you are fleeced left right and centre until there is only bleached bones.

This is how it is in much of the world,
where capital gains tax can be 80% if the police household registraton shows you had people other than your own family staying, because you must have rented to lodgers, and therefore the house has been used for commercial purposes.

The laws don't make much sense because the lawmakers are bent, and the politicians are paid by industrialists to smooth the way for exploitation of labour and natural resources.

The more oppressive and irrational the system gets, the more people circumvent the system. A property in some places (not UK) can be sold a dozen times without ever bothering the land registry, to avoid the punitive capital gains tax, which was meant to discourage property speculation!
Contracts are drawn, just not done through official channels. If anyone in the chain welshes on the deal, meat cleavers come out. It's how people establish another order of justice when the official one no longer serves the people.

Do not accept the decline in British public institutions, root out and kill the double glazing salesmen running the banks and utilities, because you do not want to defend your home by routinely bribing magistrates and whipping out your longsword to defend your property; you will find the other guy is always greedier and has more money to bribe the judge.

No one is asking to be subsidized. We should not be ripped off and blackmailed by some of these usurious fees.

"When it comes to taking the pi$$ and screwing you over the UK seems to have well and truly nailed it. I've doubled our ability to pay the mortgage and somehow we get penalised for this?!
Personally I'd prefer to cut our losses and sell the house and cut all financial ties with the UK, I'll never live there again.
I've lived in countries with similar levels of tax BUT unlike the UK you actually get something for you money, like decent roads, schools, healthcare (nothing like the donkey that is the NHS).
My advice... leave, the grass is greener on the other side - not to mention sunnier and drier too."

gets my vote every time.

The best decision ever made was to leave UK.

Here is a comparison of there and here.

UK semi detached with 85 square meters of floor space. 140 thou.

Here in Germany. DETACHED house with 157 square meters of floor space er.... let me see. 56 thousand pounds.

What other benifits. half an acre of land for the kids, NO LITTER or DOG S**T on the roads, no chavs with burberry baseball caps, no 12 year olds getting drunk and abusing people using all night Tescos and a police force that take EVERY CALL seriously and turn up in less than 3 minutes. Oh yes... we all speak the language and have the skills. The health service here has done more for my daughter who has cerebral palsey, than Doncaster did. They mis diagnosed for 2 years and here they had the problem well into corrective measures with a matter of weeks.

Lets just take some time out to reflect on where this is going. people are leaving the UK at a rate of nearly 10,000 per year. Why is that ??? Because its a nice place to be ?? Financially we have never been so comfortable as we are now. In Uk all we got was shafted by every company under the sun just after they announced 50% profit increases. You are welcome to it. I will NEVER move back to the UK. My children deserve a better environment to grow up in. Did i mention that we dont get pikeys either who think that its ok to park on some-one elses land for a month and then tip the chemical loo all over the crops ???

Labour sold UK down the chute and they will continue to do so. Wake up and see whats happening. Look at the 10p tax. Great for part time chavs who stayed under the threshold. No good for normal working people who pay their dues. Chavs win again at the taxpayers expense. Now thats what I call subsidy. Same tune with student loans. Dont pay them back if you earn less than xxxx per year. What do students do ? go and find a job that pays slightly less than the pre stated level and that way they ensure that their bill is picked up by taxpayers. My God is it so hard to understand?

Feel free to email directly. I would love to show you about 400 differences between here and the UK. Most of which are positive.

Mark