No wonder the financial markets are in the poo...
Discussion
..My parents are pretty old (70 and 71) and long since retired.
They live in Australia. Just had a call as they want to downsize from the house they have had for 10+ years. They have no mortgage and their only 'income' is the Australian pension.
They tell me they are going to rent out the house and buy a smaller one because the market for selling is poor, but rentals still strong.
"where are you going to get the cash for the new smaller house?" I ask.
"Bank mortgage" they say.
On what income? They're retired.
ANswer: the rental income on the family house!
FFS. Who would lend 70+ year old retirees with no income on the basis of rental income form one property??
The world has gone crackers.
They live in Australia. Just had a call as they want to downsize from the house they have had for 10+ years. They have no mortgage and their only 'income' is the Australian pension.
They tell me they are going to rent out the house and buy a smaller one because the market for selling is poor, but rentals still strong.
"where are you going to get the cash for the new smaller house?" I ask.
"Bank mortgage" they say.
On what income? They're retired.
ANswer: the rental income on the family house!
FFS. Who would lend 70+ year old retirees with no income on the basis of rental income form one property??
The world has gone crackers.
johnfm said:
..My parents are pretty old (70 and 71) and long since retired.
They live in Australia. Just had a call as they want to downsize from the house they have had for 10+ years. They have no mortgage and their only 'income' is the Australian pension.
They tell me they are going to rent out the house and buy a smaller one because the market for selling is poor, but rentals still strong.
"where are you going to get the cash for the new smaller house?" I ask.
"Bank mortgage" they say.
On what income? They're retired.
ANswer: the rental income on the family house!
FFS. Who would lend 70+ year old retirees with no income on the basis of rental income form one property??
The world has gone crackers.
They wont be able to do this. They wont get the required life insurance for the pension. They live in Australia. Just had a call as they want to downsize from the house they have had for 10+ years. They have no mortgage and their only 'income' is the Australian pension.
They tell me they are going to rent out the house and buy a smaller one because the market for selling is poor, but rentals still strong.
"where are you going to get the cash for the new smaller house?" I ask.
"Bank mortgage" they say.
On what income? They're retired.
ANswer: the rental income on the family house!
FFS. Who would lend 70+ year old retirees with no income on the basis of rental income form one property??
The world has gone crackers.
Tony*T3 said:
johnfm said:
..My parents are pretty old (70 and 71) and long since retired.
They live in Australia. Just had a call as they want to downsize from the house they have had for 10+ years. They have no mortgage and their only 'income' is the Australian pension.
They tell me they are going to rent out the house and buy a smaller one because the market for selling is poor, but rentals still strong.
"where are you going to get the cash for the new smaller house?" I ask.
"Bank mortgage" they say.
On what income? They're retired.
ANswer: the rental income on the family house!
FFS. Who would lend 70+ year old retirees with no income on the basis of rental income form one property??
The world has gone crackers.
They wont be able to do this. They wont get the required life insurance for the pension. They live in Australia. Just had a call as they want to downsize from the house they have had for 10+ years. They have no mortgage and their only 'income' is the Australian pension.
They tell me they are going to rent out the house and buy a smaller one because the market for selling is poor, but rentals still strong.
"where are you going to get the cash for the new smaller house?" I ask.
"Bank mortgage" they say.
On what income? They're retired.
ANswer: the rental income on the family house!
FFS. Who would lend 70+ year old retirees with no income on the basis of rental income form one property??
The world has gone crackers.
Trying to advise one's parents from 12000 miles away is very frustrating.
They need to sell their house for whatever the market pays, and buy smaller from teh proceeds. Deposit the balance in their savings account. End of.
My parents sold up in the UK some years ago. Dad was 66. They took a mortgage on a Flat, with 60% deposit. Mortgage was to be paid out of Dads pensions. Insurance to cover untimely expiration of Dad.
Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
Tony*T3 said:
My parents sold up in the UK some years ago. Dad was 66. They took a mortgage on a Flat, with 60% deposit. Mortgage was to be paid out of Dads pensions. Insurance to cover untimely expiration of Dad.
Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
st a brick. What on earth were the grounds for revoking the insurance cover? Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
miniman said:
Tony*T3 said:
My parents sold up in the UK some years ago. Dad was 66. They took a mortgage on a Flat, with 60% deposit. Mortgage was to be paid out of Dads pensions. Insurance to cover untimely expiration of Dad.
Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
st a brick. What on earth were the grounds for revoking the insurance cover? Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
miniman said:
Tony*T3 said:
My parents sold up in the UK some years ago. Dad was 66. They took a mortgage on a Flat, with 60% deposit. Mortgage was to be paid out of Dads pensions. Insurance to cover untimely expiration of Dad.
Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
st a brick. What on earth were the grounds for revoking the insurance cover? Deal was done. Money paid, bank lent money, builder recieved, parents moved in.
3 months later insurance company sayd "you've got to be joking" and nullifies Dads insurance cover. Left with Mortgage and no insurance.
Obviously, stress adds to Dads issues. Dad drops dead. Leaves mum with meagre pension provision, large mortgage.
Credit crunch comes, housing market in Spain collapses, flat near neg equity and unsellable. mortgage needs to be paid from UK, so you can imagine what the new exchange rate does to the situation.
Sad story. My Dad was a sensible person with his money all his life. I think this worry had some effect on his remaining life. They lived in their retirement flat for 2 years before he suddendly died.
RIP Dad. Hope your parents can learn from his mistake.
Left my mum up st creek. Living alone, in spain, with a mortgage she has no hope of paying off, but is (just) making the payments on. She should be living a comfortable retirement but quite frankly the worry and stress has changed her. The future doesnt look promising, now the housing market out there has turned to st.
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