Negative Equity

Cappuccino

Hi - you have my sympathies. We are in a similar situation. We bought for £144k at the end of 2006 when the house had not been decorated since 1969. We redecorated most of the house, spent £3.5k on a new central heating system and numerous other improvements.
Last week we were told by estate agents our house was currently worth £125k to £130k. I put a £7k deposit on the house so our mortgage was £137 - and I think we've paid £6k to £7k off of that, so we owe approx £131k so we are in negative equity, both only just.
We've still lost £20k to £25k though.
I actually blame both the banks and the government for out current situation. The banks for being greedy enough to lend irresponsibly, lenging people up to 10 times their salary and boosting the house price increases, and the government for allowing them to do it and not seeing this crash coming a long time ago.
Now we are planning to move to Canada towards the end of next year, we have to face the possibility of losing a lot of cash selling our house AND paying Northern Rock a large redemption penalty on the fixed mortgage, or have the hassle of renting the house out whilst we are abroad until the prices rise again (and by the sound of it that could be a long time).

Rick62

MACDONALDO67 wrote: »

The thing is I can keep up with the repayments and have been for the past 10 years no problem.
quote]

If you have had a mortgage, and so presumably a property, for 10 years then how come your mortgage was taken at 90% LTV. Surely with all the increases in value over the last 10 years you should have had a lot more equity?

MACDONALDO67

Rick62 wrote: »

MACDONALDO67 wrote: »

The thing is I can keep up with the repayments and have been for the past 10 years no problem.
quote]

If you have had a mortgage, and so presumably a property, for 10 years then how come your mortgage was taken at 90% LTV. Surely with all the increases in value over the last 10 years you should have had a lot more equity?

Sorry but I am on nights and I have only just opened up the thread again to catch up.

Some very interesting reads on here I must say. I didn't take that as a rant Conrad but very right what you say.

My mortgage has gone up and the capital has been used on a big house move to an area we were after. The house we were originally after was £249,000. We didn't sell in time and missed that one. Finally, once we had sold the pressure was on us to find the house we wanted in the particular area (for schools, transport etc). There was not a great deal about but finally we dropped lucky and a house come up but cost £276,000. The samp duty cost still sticks in my throat today.

So yes I have pushed the boat but I can afford where we live. This was our decision and my responsibility.

I look at the SVR's for Nationwide and Lloyds standing at 3%. At Abbey it is 4.69 but I do believe they are about to make an announcement in the next couple of days. Possibly a 0.25% or 0.5% reduction (acting on Februarys BOE reduction of 0.5%)

Joeskeppi I know how you feel. The other day I was livid so say the least. A couple of years ago I was given a 2 year deal but now I do not qualify.

If Abbey were to agree a deal with me then I have that security around me of knowing what I am going to be paying for the next few years. The rate I was going for was higher than the current SVR. I am not entitled to any deal so I am now in the situation of "What if the rates go haywire?".

I know it is an "If" but eventually they will rise again but nobody knows to what and when. So until then I plan to overpay and pay off a big chunk from savings in March. If an when the rates go up I do hope the house prices do too.

RBS today and the money that is being borrowed, and squandered, sends shivers through me.