Give me some hope !

Dithering_Dad

brit1234 wrote: »

Its looking increasingly likely prices will fall further than 50%.

:rotfl: :rotfl: :rotfl: :rotfl:

lol, brilliant!

Brit is always good for a laugh! Lord, spare my poor ribs!

mitchaa

Abbaliz wrote: »

Hi again

the house is in Bradford , West yorkshire

25 year repayment mortgage started in November 2007, me and my husband (joint mortgage) both 37

It depends on who you ask as to what response you will get.

The answer is...No-one really knows. Any info you may take away from here, take with a pinch of salt. DO NOT LET IT GET TO YOU

Im not the usual doom and gloom MSE HPC poster, i firmly believe nationwide houseprices will drop down to around £145k before 6 months of stagnation, followed by increases again as the market picks up. I suspect houses will start to rise again early 2010. The 2nd half of next year will remain steady, the 1st half, probable low monthly drops.

Im just another with an opinion, my beliefs are no more correct or incorrect than anyone elses.

If you can afford your mortgage, do not worry about it. In 10-15yrs time, your house will be worth a hell of a lot more than what it is now;)

I suspect your house has probably dropped down to around £125k at the moment.

Annpan

Abbaliz wrote: »

.....also do have 10% ready to pay maximum capital repayment (most we can do without penalty) in January but i dont think even that will stave off the negative equity !!

can afford repayments, on the lenders current SVR, our fixed term rate finishes in nov 2009. we are prepared for a hike in monthly payment but can pay it........

It's a pity your fixed term ends in Nov 2009 but fingers crossed for a lower SVR. I was going to say stop worrying about it and overpay as much as you can without making yourself miserable. If you're content there then don't worry be happy as time has the unfortunate habit of flying by and before you know it you'll be years down the line and out of this downturn with a good chunk of capital paid off your mortgage. Just put the holiday to the Seychelles on hold!

sympatex

Well you seem to have a plan so it won't come as a massive shock if/when you get bumped onto the SVR. Mind you given the interest rate chat you might find the SVR less than your fixed rate anyway! Could actually save money!

Enjoy the house, it should be treated as a home not a cash machine anyway. In hindsight it won't be your best financial decision but that's just the way it goes. "it'll be alright in the end". I suspect the massive inflation the government want to induce will help eat your loan away, longterm anyway.

Abbaliz

Oh yes, it was bought as a home not an investment.

as i said, im happy to stay there - i just want to hope that there will be some point in the years to come that we can move without been in negative equity! as no doubt there will come a time when we want to move.

obviously the mortgage goes down a bit each year and we do have the ablility to overpay , but all this gloom and doom makes me wonder if we will ever be in a position to sell and buy again without making a horrendous loss given that we bought at the top of the market ....

mitchaa

dopester wrote: »

Yes, but the crash has only just begun in Aberdeen, so your area is just a few months behind England and much of the rest of the world

I wont bite:p

(I'll soon be buying the neighbours homes and have 3 in the same street if i believe everything i read on here Houses are going to be bought on CC's according to some.)

Dithering_Dad

To the OP, don't worry about the drops in the housing market, you've only recently bought so I assume you're not ready to sell just yet.

If I were in your position and worried about negative equity, I would make sure that I had adequate emergency savings provision (at least 3x monthly outgoings), adequate retirement provision (company or personal pension) and sufficent life assurance (enough to pay off the mortgage at least).

Once the above is in place, and if you have any spare cash, I would make some overpayments and try and reduce down the mortgage balance.

People stay in a home for an average of 7 years before moving, I can assure you that the housing market will be in a much better state in 7 years than it is now.

My last advice would be (and this is to everyone) NEVER ASK FOR HOUSING ADVICE ON THIS PARTICULAR FORUM!!!!! You will only receive the biased rambling of many embittered non-home owners who will tell you anything if they think it'll make you depressed enough to sell your house for £1.50p

Chin up, and remember that your house is a home, not an investment. You will now be safe from unscrupulous landlords, you can decorate the house exactly as you please and if you have children you will have given them a stable enviroment in which to grow.

Cannon_Fodder

For some facts on the current position, rather then opinions, try; http://www.hbosplc.com/economy/includes/17_10_08YorksHumb.doc

Having the spare 10% set aside will help. On a repayment, you have paid more than the origianal 10% deposit anyway, by now. Seems like you have your head screwed on, well done.

And remember, any house you decide you do like, will be more attainable if prices remain low, than if they shoot straight back up again in 2009/10.

Long live low-ish prices.

hethmar

Abba, if you arent selling, stop worrying You will surely not been in neg equity for the rest of your life. Get on with enjoying whats left of your youth now

savemoney

I bought my 1st house in 1989 in the last large housing drop. It took about 5 years after than for houses to recover in fact at one period we were living in negative equality. One thing that helped us temporary even when interest rates peaks at 16% was a low start mortgage although we paid for it later. It was only the last few years we actually had large increase in house price in my area. When we sold in Jan 07 and bought our current house we were able to put a large deposit down, now prices are down not sure how much in my area as few are actually on the market, so I can assume people dont want to sell.

If you can rid it out a house is most cases is a good investment if you see it as one, for me its just some where where I can live, bring up our kids and hopefully see us until we die or there abouts