Negative Equity

b0rker

silvercar wrote: »

Having been living in rented since 2002 (worst case that would 14 rental moves!) they must be gagging to own their own home and would have preferred a short sharp drop to a long drawn out gradual decrease.

The long drawn out gradual decrease with the associated low interest rates are helping many who inadvertently purchased near the top by giving them a chance to save enough to stave off NE.

I would expect the priority to be avoiding hundreds of thousands of repos/bankruptcies which will only further the tax payers burden to the banks over the impatience of those who STR early in the game.

By the way I entirely agree with the points you were making about why the early STR's are annoyed. Patience is a virtue Clairvoyancy is a skill that few have mastered.

MACDONALDO67

chrisclipson wrote: »

MACDONALDO67 - I agree that it's not your fault, but it's not anyone else's fault either surely? It's just one of those things, but I'm not quite sure why you sound so angry or panicky:
1. The SVR you are on must surely be as low if not lower than your fix was?
2. Interest rates have only been brought down so far because house prices fell. Logically they will only go up again once house prices recover, so you should be able to get a new fix then if you still want one.
In the meantime, enjoy the fact that your SVR is so low, and that you have a house with no danger of repossession. Where's the (real) problem?

I've had time to calm down a little now. Was just annoyed because having never missed a payment, never defaulted, always paid on time, always met deadlines with bills, council tax etc, etc and also kept a tight control on credit card debt, cannot get a fixed rate deal now. It was just so easy for the Abbey to say sorry but we cannot help you whereas two years ago they couldn't help me enough.

My SVR is a lot lower than my previous fix / deal but I prefer the stability of knowing what I am going to be paying for the next few years. It's that uncertainty and the "What If" factor that eroded me a little.

I suppose if two years ago to buy a house you had to have a much bigger deposit instead of the 90-100% mortgages that were given out, a lot of peoples circumstances would be different today.

Anyway roll on March. Paying a big chunk off with my bonds and now looking at overpaying whilst the rate is low.

mikeopvc

MACDONALDO67 wrote: »

I've had time to calm down a little now. Was just annoyed because having never missed a payment, never defaulted, always paid on time, always met deadlines with bills, council tax etc, etc and also kept a tight control on credit card debt, cannot get a fixed rate deal now. It was just so easy for the Abbey to say sorry but we cannot help you whereas two years ago they couldn't help me enough.

My SVR is a lot lower than my previous fix / deal but I prefer the stability of knowing what I am going to be paying for the next few years. It's that uncertainty and the "What If" factor that eroded me a little.

I suppose if two years ago to buy a house you had to have a much bigger deposit instead of the 90-100% mortgages that were given out, a lot of peoples circumstances would be different today.

Anyway roll on March. Paying a big chunk off with my bonds and now looking at overpaying whilst the rate is low.

That's the way to do it:j
Stay positive and you will make the right choices.

System

I'm in the same situation MACDONALD, I bought a flat for 120,000 with a 10% deposit in May 07 on interest only.

I have 6k saved up to pay some off when my fixed deal ends but it's nothing compared to what I need to remortgage.

It doesn't help that Abbey don't pass rate cuts on, and that their remortgage deals are horrendous.

The best deal Abey does is 5% LTV, £2,499 fee and 7.09% for 5 years.
Natwest is 0% LTV, £199 fee and 5.04% for 5 years.

So I'll tell you who I blame, Abbey, for being penny pinching scum. How is it my fault that I chose Abbey? How could I know that they would set out to prevent people remortgaging as much as possible? If I'd have chosen Natwest 2 years ago I wouldn't have a problem now, but as it is I'm stuck with Abbey who won't lend anyone any money.

When the rates inevitably shoot up again I'll be stuffed.

Fliss_M

Joeskeppi wrote: »

So I'll tell you who I blame, Abbey, for being penny pinching scum. How is it my fault that I chose Abbey? How could I know that they would set out to prevent people remortgaging as much as possible? If I'd have chosen Natwest 2 years ago I wouldn't have a problem now, but as it is I'm stuck with Abbey who won't lend anyone any money.

When the rates inevitably shoot up again I'll be stuffed.

Er, it is your fault. You werent pushed into the branch with a gun to your back, you chose Abbey due to a good rate for your deposit size I imagine.

So you got a great deal and now your upset that there not. Thats life. Had 2 years ago you been faced with Abbey or Natwest but Natwest was 0.5% more a month, I doubt you would have plumped for them!

I have seen that rate myself and it is irritating, I would love that rate to fix. But thats life, its not anybodys fault.

Banks are here to MAKE MONEY not give us a break in life. If their mortgage book looks especially toxic, they will want more for lending. Same for A&L. Their SVR is worse then Abbey so I imagine their books look even more toxic.

ILW

Joeskeppi wrote: »

So I'll tell you who I blame, Abbey, for being penny pinching scum. How is it my fault that I chose Abbey?
.

Why did you choose Abbey?

Pssst

To the OP,try not to worry about it. Are you happy with your home and what you pay to live there every month? If so,thats all that matters.

baby_fuzz

paulfaz wrote: »

Look at selling now and buy something you can afford. Unless you can find the money to reduce your LTV you are at the mercy of your current lender's SVR. At least you have noticed now that this is going to be a major problem in the future - there's no doubt that SVR will rise.

I thought the OP was in negative equity... Surely selling up now, means that they would need to get hold of the extra cash to pay off the bank when selling their house?...
Am I missing something?

beecher

Joeskeppi wrote: »

So I'll tell you who I blame, Abbey, for being penny pinching scum. .

There's a lot of anger about, and I suppose Gordon Brown blaming everyone bar himself is part of the problem here. Everyone's looking for someone to blame, but calling Abbey 'scum' for not offering a deal to someone who has an interest only mortgage with a high LTV is eyeopening to say the least. You're a bad risk and I for one want banks to go back to traditional banking which means not giving deals to people with more than 90% LTV.

System

At the time all the banks had pretty much identical rates and were falling over themselves to lend me money, I may as well have picked Abbey due to the fact they were first alphabetically.

But you miss the point, even if Abbey WAS the best deal, there's still way of knowing that they'd be the worst now.

It's just frustrating, it's 100% luck if you've got lumbered with a lender who like Abbey or one like Natwest, and anything based on luck is not fair by definition.