Negative Equity

Trollfever

and sure fire repossession.

Do you remember signing this:

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

Fliss_M

Trollfever wrote: »

Do you remember signing this:

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

To be fair, everybody knows if they stop paying they get kicked out. It doesnt stop the worry of what could be tho and knowing where your limit is and fearing that.

If he was like me and was only a child last time, the thought of 14% rates will never have occured

maninthestreet

MACDONALDO67 wrote: »

SVR OK at the moment. I am thinking of the bad old days in the early 1990's.

7,8,9% and the alarm bells will definately be ringing. Above that and game over.

What a mess !

That's why you should be over-paying as much as you can now.

MACDONALDO67

Trollfever wrote: »

Do you remember signing this:

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

Thanks for the reminder and yes I do remember.

The thing is I can keep up with the repayments and have been for the past 10 years no problem. I can continue at the moment to keep up. I am concerned if we ever go back to the 1990' rates again. The Government has to recoup the loans it is making against this country.

The point I was trying to make is that I wanted a long term deal now that I am coming to an end of my current deal and I cannot get one at all.

The bank will not give anyone a deal if the value of the house falls below the deposit value. THAT IS NOT MY FAULT.

Now that I am in this position, if house prices do not recover and the interest rates go way up then the future does not look rosy.

There are other people out there that can continue to pay their mortgages on a fair deal but cannot get one. The banks could lend but they don't. People fall behind,lose their homes, bank wins. The bank has a lot of people by the short and curly's and I feel that I am in that category.

Doesn't mean that I cannot afford the SVR at the moment but I would feel happier if I could secure a deal for 5, 10 years say.... but I cannot.

Going on Abbey's estimates my property has lost £37,000. A drop in the ocean for other poor !!!!!!s on this forum.

2010 looks to be a very testing year for me.

ILW

Fliss_M wrote: »

If he was like me and was only a child last time, the thought of 14% rates will never have occured

It amazes me that people sign up to a 25 year mortgage without looking at what has happened in the past.

mikeopvc

Do you rate your own house better than the others in your area?
If so you might be able to improve your LTV by getting it valued, we were told by RBS that our house is now valued at £165k, we payed £200k for it in august 07.
They based their valuation on the area but we are surrounded by bungalows much smaller than ours and we are on a much larger plot, also we have made some improvements since moving in so I completely refuse to accept their area based valuation.
We are looking for a new mortgage deal but have instructed COLLEYS to come value our property first, this I feel is the only way to get a fair and unbiased opinion of what our house is worth.
I hope it works, It's only £128 for the valuation so it's worth the risk.

Fliss_M

ILW wrote: »

It amazes me that people sign up to a 25 year mortgage without looking at what has happened in the past.

Sod 25, I signed up for 40. Taken out feb 06, nobody says, what if rates do this and back then then I just wanted out of the sh*t hole I lived in and not renting again as I saw the chance to buy slipping from my grasp. (little did I know what would happen in 3 years time)

Admittedly, its up to me to ask those questions of myself, but when your short of life experiance, and that what you do have is rosey, you live by what you have now. As it is our combined wage would mean we can cover up to 9% rates comfortably, were they the same as then, more then 6 would be a struggle

Gorgeous_George

MACDONALDO67 wrote: »

... The bank will not give anyone a deal if the value of the house falls below the deposit value. THAT IS NOT MY FAULT.
...

Who's fault is it?

Who paid well over a quarter of a millioin pounds for a house in December 2006? Who used other people's money to buy it?

It's not the banks' fault. It's not the Government's fault. You gamble (on Premium Bonds) and complain that your mortgage is too high . Cash them in and pay a bit off your debt for goodness sake.

By the way, if you haven't worked it out, I think it IS your fault. At the age of 38+ and having had a mortgage for 10 years or more - at EXTREMELY LOW interest rates (brought to you by our current Government that you so despise) you should not be worried about negative equity.

Take responsibility.

GG

beecher

MACDONALDO67 wrote: »

The bank will not give anyone a deal if the value of the house falls below the deposit value. THAT IS NOT MY FAULT.

I understand that you're angry, but banks are quite right not to give you a deal if you're in negative equity.

MACDONALDO67

Gorgeous_George wrote: »

Cash them in and pay a bit off your debt for goodness sake.

GG
That is part of my plan for March but that does not help me get another fixed rate deal.

As I said at the beginning, for me to get a new deal I have to find £53,000 unless the property value increases in turn reducing that £53,000.

So even paying in part of my premium bond pool,or even all of it, still leaves me way short.

In terms of responsibility..... I know it is all mine. However, with what is going on in the economy with this banking mess, recession, credit crunch, lending crisis who's fault is that? How has this come about? Greedy people at the top maybe?

So their irresponsibility is no different from anyone else's..... only that they made quite a few bob on it whereas the little people have to bear the brunt. I take it that's my fault?