1.5m homeowners face 'disaster' if house prices keep falling, MPs warned

carolt

http://www.guardian.co.uk/money/2009/jan/14/houseprices-property

More than 1.5 million homeowners with big mortgages will be facing "a disaster" if — as expected — house prices fall by another 15% this year, leading figures for the consumer organisation Which? and Citizens Advice warned MPs today.

Both organisations told the Commons Treasury committee investigating the banking crisis that they were alarmed at the prospect of a new wave of repossessions despite the government's call for lenders to delay taking action.

Doug Taylor, personal finances campaign manager for Which?, and Peter Tutton, senior policy officer at Citizens Advice, painted a grim picture facing mortgage-holders, particularly "right to buy" tenants who had bought their council or housing association home and now could no longer keep up their mortgage payments. "We could be facing a disaster if this happens," Taylor warned.

skap7309

Whilst it is sad, for every disaster there is good news. All those people looking to buy/move up the ladder etc will now not be a slave to massive debt. Long may that continue, the new generation is here.

Really2

skap7309 wrote: »

Whilst it is sad, for every disaster there is good news. All those people looking to buy/move up the ladder etc will now not be a slave to massive debt. Long may that continue, the new generation is here.

Well untill the next crash.:rolleyes:

nic_santorini

the time is nearly here to buy out my shared equity scheme and perhaps pay them back less than I borrowed - now that would be a result. Shame they were so greedy and stopped me selling my house because they wanted more money - when quite frankly it was never going to sell for the figure they wanted.

skap7309

Really2 wrote: »

Well untill the next crash.:rolleyes:

I agree, however if so many of us are poised to buy at the bottom then it is unlikely that low will ever be seen again. All about timing from now on.

Really2

skap7309 wrote: »

I agree, however if so many of us are poised to buy at the bottom then it is unlikely that low will ever be seen again. All about timing from now on.

mmm. so much about value for money and buying at the bottom the future of MEW is a certain.

Good job I got 27% off in August and put 30% down. I would hate to guess the bottom and not get the house I wanted. You could end up trading up in the middle of HPI.;)

carolt

Or not need to trade up as you bought what you wanted?

chucky

skap7309 wrote: »

I agree, however if so many of us are poised to buy at the bottom then it is unlikely that low will ever be seen again. All about timing from now on.

very true - they'll be many people missing out, good news of that is that many will still be on this board in the next downturn to entertain the regulars.

Really2

carolt wrote: »

Or not need to trade up as you bought what you wanted?

Lets hope so. But when i purchased first it was what i wanted (a 3 Bed semi) When we had a child it wasn't, The average pseter looking to purchase seems to be 25-32. plenty of time to have a few kids.
Not disputting will get what they want but you can't account for the future.

Nature does what it wants (tripplets anyone:D )

BenL

No they won't face "disaster".

They will keep paying their mortgage payments, maybe even benefiting from IR cuts.

If they lose their jobs it will be a disaster but not just because the owe more than their home is worth.

I haven't been in a disaster for a year or so when I owed more on my car than what it was worth. It is my biggest asset at the moment so why are these homeowners in disaster.

BenL

In addition, my g/f is probably in negative equity with her house.

Is she facing disaster, no, she is one of the happiest people I know with a nice home for her and her daughter and IR cuts benefiting her to about £150 a month or something now.

I however have my savings rates trashed.