News Carol Hunt

Thursday 29 January 2015

Bankers are still trying to bamboozle us with jargon 

Have you heard the one about Kate? She had thirty grand to buy a house with. The one she liked cost €300,000 so she borrowed the extra €270,000 from her local bank. The market collapsed, Kate's home fell into negative equity, her business went bust and she couldn't meet her interest repayments. But she didn't worry too much. She used mainly other people's money to get herself out of her fix and she had a gullible but wealthy Auntie Claire to go guarantor on another home – meaning our Kate didn't have to provide any equity at all. It's a win-win all...