advice please - my house has dropped £27k

curlyboy

Hello I have a £98k mortgage over 28 years ( im 35 ) now, my house a 3 bedrooom semi has droped from £132,000 value from early 2008 to £105,000 now im a bit worried with negative equity etc, were not planning to move anywere were having a new kitchen soon and re decor, I hope prices eventually go back up what does every1 think.....no houses are selling loads of for sale signs everywere....

Broken_hearted

If you are not planning to move and can afford your mortgage there is no problem.

darich

if you're not planning on moving and are upgrading the kitchen and decorating what do you need advice on??

drbeat

curlyboy wrote: »

Hello I have a £98k mortgage over 28 years ( im 35 ) now, my house a 3 bedrooom semi has droped from £132,000 value from early 2008 to £105,000 now im a bit worried with negative equity etc, were not planning to move anywere were having a new kitchen soon and re decor, I hope prices eventually go back up what does every1 think.....no houses are selling loads of for sale signs everywere....

Cancel new kitchen and re decor. Put the money into the mortgage.

amcluesent

P45s will soon be raining down across England. Expect the worst and save!

neas

times be hard.....

Truly a recession makes people prioritise their finances.

how much does the new kitchen cost? and how are you paying for it?

ad9898_3

Broken_hearted wrote: »

If you are not planning to move and can afford your mortgage there is no problem.

Not strictly true, unless he has a long mortgage deal, if he needs to remortgage for any reason (with a different lender), in the years to come, he will be trouble.

jm28cardiff

If your not moving, and not about to re-mortgage, negative equity does not matter one bit. Its all psychological.

jillymit

Try not to worry about what everone else is doing. 'for sale' signs everywhere etc.
If you can afford your mortgage and are not planning to move in the next few years why worry?
I you are planning to sell and buy something else at least everyone's in the same position and that house will have dropped in price as well.
It is a shame to see your house which once was valued at x amount fall in price I know but it sounds like you still have a bit left over at the end of the day to be in a position to do the kitchen.:D
Hope you have a good 2009!

neas

well... if he has negative equity he cant move mortgage company... i.e if he is stuck on a high rate... or the SVR goes insane (13%) then he cant fix or anything...

True as long as he pays mortgage he is fine, but it is not an ideal situation, one can easily brush off..

ess0two

You cant put your life on hold,if you can the afford the improvements go for it.