Equity 'going back into property'

Airwolf1

IveSeenTheLight wrote: »

My Mr airwolf, what big set of crystal balls you have

Ive seen the light. :rotfl:

I thought it was quite a good response anyway!! Seriously, I am not saying this time next year will be the lowest for house prices, but may be the lowest. The may covers me

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amcluesent wrote: »

Sterling inflation will wipe away the real debt.

Fixing a mortgage rate is absolutely necessary, as inflation will never counter the certain interest rises that would follow.

Gorgeous_George

I accept that the word 'equity' is fine for those of us who understand. People never say taht they have negative equity when they buy a car with a loan. It seems to be reserved for houses and, as Generali points out, it is unrealised cash. Or as I like to call it, non-existant cash.

Negative equity is potential debt. Equity is potential cash.

GG

neverdespairgirl

IveSeenTheLight wrote: »

Thanks,

I really would recommend everyone takes the time to read the small print on any contracts they have, try to understand the product and the effect on any changes.

I really recommend everyone takes the time to read the small print on contracts before they sign them, as well!

chucky

GracieP wrote: »

Have they got they message or do they attempt to MEW but discover upon valuation that they don't actually have any equity left to release?

if home owners are putting equity back into their property that must mean that they can afford their repayments and some extra too. therefore there must be less distressed home owners that will have to sell their property at knock down prices.

mewbie_2

chucky wrote: »

if home owners are putting equity back into their property that must mean that they can afford their repayments and some extra too. therefore there must be less distressed home owners that will have to sell their property at knock down prices.

No. Some owners are indeed able to pay extra BUT as you very well know Mr. Chucky, with rising unemployment more will unfortunately find themselves unable to pay, even with very low interest rates. CML prediction, not mine.

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Gorgeous_George wrote: »

Negative equity is potential debt. Equity is potential cash.

GG

It's not 'potential' to the bank when you goto to get a remortgage. They treat it as real, as to whether you get that 'great mortgage deal' or not

chucky

mewbie wrote: »

No. Some owners are indeed able to pay extra BUT as you very well know Mr. Chucky, with rising unemployment more will unfortunately find themselves unable to pay, even with very low interest rates. CML prediction, not mine.

so we will only need to be thinking about the homeowners or the main salary earner of the family of the 600,000 that are potentially to be made unemployed in the next year, many of these will be renters or living with parents too though

David_Cd

IveSeenTheLight wrote: »

If the equity withdrawel figures are negative, that means that money is being put into equity, not taken out

In 2008, I put almost £20k in overpayments into my mortgages.
discussing with Mrs ISTL at the moment about puting another £12k in, in January.

Of course, there is alsways the option not to overpay so much and build up a rapid deposit in case another good oppertunistic property was to become available.

I've overpaid by £27k (2008) but if hyper-inflation kicks in we may both regret it as presumably the real money value of debts will wither away.

As it happens I may have to move (a job change could force it) so I will probably have the fun task of trying to sell (or rent) my current house in the spring. Gulp!

IveSeenTheLight

David_Cd wrote: »

I've overpaid by £27k (2008) but if hyper-inflation kicks in we may both regret it as presumably the real money value of debts will wither away.

As it happens I may have to move (a job change could force it) so I will probably have the fun task of trying to sell (or rent) my current house in the spring. Gulp!

I certainly would not regret it.
The debt needs to be serviced (paid off) at some point in time and if hyper inflation withers away the real money value, it will just mean that I have even less to pay back then by paying it now.

P.S. good luck with the new job / house relocation (sincerly)