ME leads to home repossession

[Aurator]

https://www.bbc.co.uk/news/business-44851363

After reading that "chronic illness" had contributed to the couple's financial predicament, I was curious to know what chronic illness. Silly of me really; I should have just thought of the most impoverishing chronic illness out there.

 

[RoughDayz]

I went to sleep one night never knowing this night would be my last normal night on earth. You think you may have everything planned out but i didn't plan on ME/CFS. I too have lost my 21 year job, house, car, savings and all my possessions due to ME/CFS.

All the above can be replaced. I am very fortunate that I have a family that helped me. I still have hope, faith and a belief that I will be cured.

Never give up no matter what happens!

God bless

 

[ArtStu]

I obviously don't know all the details but you should be able to keep a hold of your house I'd have thought ? there is support out there https://www.gov.uk/support-for-mortgage-interest/eligibility

 

[ukxmrv]

I wonder if this is the "interest only" type of mortgage which got them into this mess? When the loan matured they had not paid off any of the capital.

This seems very common in London. House prices were rising and some people found that the only way they could get a mortgage and afford the repayments was an interest only one. This left them vulnerable to repossession at the end of the loan term.

When the original loan came to the end they needed to remortgage, but because they used a self certified mortgage (where some people exaggerated the amounts they were paid) and this method is now outlawed, the banks would only offer them a more expensive new loan.

Anyone who has a mortgage that switches to the banks variable rate on maturity would be affected. Most people would be able to extend it or sell up or get another mortgage elsewhere. They were trapped at this point.

Not sure why they didn't use SMI unless they weren't one any of the benefits listed back then or the 39 week wait was too much

(BTW SMI is being changed to a loan now)

 

[Trish]

It was indeed a case of being sold an interest only mortgage and self certification, and not understanding that this meant they had not paid off any of the capital. They were incredibly badly advised and unlucky. What you are effectively doing in this situation is living in a house owned by the bank and paying rent.

 

[LightHurtsME]

Not sure why they didn't use SMI unless they weren't one any of the benefits listed back then or the 39 week wait was too much

Also, the mortgage interest benefit was only on a loan up to £125k (if I remember correctly, and this was lowered later) and not the actual interest people pay to the bank but a lower rate set by the government. Which would have left people well short, especially if they bought a property recently and in some of the more expensive areas in the UK, before getting ill and needing help.