2 Celebrities, 2 Different Mortgage Strategies

In today’s current climate, it makes sense for everyone with a mortgage to re-evaluate their mortgage options and strategies. UK ‘celebrities’ are no exception.  Here’s a snapshot of two famous faces and their opposing mortgage strategies.

Missed Mortgage Payments
Recent newspapers have alleged that Kerry Katona has been spending her mortgage money on furniture and other big item tickets.  The Mirror Online claims she hasn’t paid her mortgage in more than a year while Beacon Financial Training Ltd contends: “Kerry Katona has blown her mortgage money on a spending spree where in one month she has apparently spent £140,000 on spa trips, alcohol and clothes”.

Having reportedly declared bankruptcy late last year and owing an extensive tax bill, she could face eviction if she continues to fail to meet her mortgage repayments.

Mortgage advisors should make all clients aware that failing to make mortgage repayments could put their homes at risk of repossession. In addition, advisors will want to ensure potential homeowners can afford the mortgage they recommend. This is apparent with lenders tightening mortgage application criteria.

Pay Mortgage Off Early & Invest in Property
Newly crowned X-Factor Winner Joe McElderry announced with his £1 million record deal, he will be paying off his Mum’s mortgage and investing in a property for himself. A wise decision even in today’s unstable mortgage market, wouldn’t you say? Although we’re only now just emerging from a long recession, if potential homeowners, including first time buyers have a clean credit history and a deposit, there are great mortgage deals available to them.