Be Oh So Careful with Your House!

by Gwyneth Allsopp on 3 April 2012

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We have had in our office this week one of the saddest stories we have heard for a while…

The client is being forced to sell his home quickly at an undervalue because of the debts run up by his wife that he knew nothing about!

He can’t afford to service the debts despite having entered into a debt arrangement. There is not enough insurance to make a difference.

To make things worse a large chunk is secured against their home. So in addition to the mortgage is another debt owed to another lender. When he sells he will probably get about £3,000 – not a lot for a life’s work.

This is all bad enough. We felt immensely sorry for him when he then went on to tell us that his wife had recently died of breast cancer.

Poor man. No wife, no money and no home.

The only moral I can draw from this…

…is to warn you never, ever secure any borrowing against your home. This will be very tempting if you have a business and need just a bit more cash.

How loudly can I say this… DON’T!

Image Credit: Jsome1′s

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