When I bought my first property in the late 80’s buy to let mortgages were not available. You could only get a residential or commercial mortgage. And they were expensive with commercial mortgages being quite risky in comparison to today’s buy to let.
Oh How The Mighty Fall
Its very easy with hindsight to see that a crash had to be imminent.Before the bank would give me a mortgage I was summoned for a “chat” with the branch manager.
He very kindly explained that I should take out some insurance just in case the unthinkable happened.
I Saw No Real Alternative
What choice did I have? He was saying all be it in a very friendly manner, take the insurance or you don’t get the mortgage.I actually had no choice. The only way was to agree to the insurance and secure the mortgage.But at least I had the protection of the insurance so how bad could things get?IWant to know if I survived this financial mess. You can go to mortgage insurance and read how it all works out.
You need to check carefully how much cover your insurance policy provides.If there is anything you don’t understand ask for clarification. If you are still not happy get third party advice.I am not anti insurance just cautious after my experience with so called indemnity.There are many more articles being added to the Hayes Mortgage Solutions website so check it out for more advice.
My 7.5% mortgage very soon increased to a massive 16%.It was very hard to make the payments and I really couldn’t see anyway out. What could I possible do to survive this?Add probable unemployment to the problem of extra expense and it all seems so hopeless.
Simple! Stay Calm. Don’t panic. There’s always the back-up of the insurance and if I lose the house its just a house right, I can get another one when the market turns again. What’s the point in worrying about something I can’t control?
Yes I Was Repossessed
So if you reach court stage and the mortgage company are asking for possession what do you do?Now I could have tried positive thinking to get me out of this mess but there’s positive thinking and there’s the debt that mounting while you practice thinking positive thoughts. All the time with one eye on the increasing balance. The negative balance. The one I would have to pay back. And who knows how long this will last. Could I actually end up bankrupt? At this point I’m still only twenty one.
The Mortgage Nightmare.
Needless to say many sleepless nights followed. And what sleep I did get was far from enjoyable. It almost seemed easier to stay up watching late night TV. Anything to keep from allowing my mind to visit my mortgage hell.
Quick Get Out The Insurance Policy – We need IT!
So did the insurance save me? Did it hell. The insurance it turns out was to protect the bank not me. It covered the banks cost of repossession my home! And that wasn’t the end of it either. Having repossessed my home the bank proceeded to sell it at auction far below market value. They then pursued me for the shortfall, some sixteen thousand pounds.
So I paid for the insurance and the bank got protection. You work it out.