Five Million Home Owners Face Negative Equity

ess0two

Dan: wrote: »

I hadn't even heard of these two people until I started reading this board.

Same people seem to always use them in topic,.......adowney,fatpig,napoleon.
You'd be mistaken for thinking they are same person:rolleyes:

geoffky

b0rker wrote: »

We will be in those figures. We purchased our home for £105,000 (valued at £108K) in Inverness in September 2007 on a 100% deal. The bank will have us down as being in NE as it is probably worth about £95K now. We will have £20K of savings which we have built up over the past 2 years. Our current deal ends in September 2009. We should have another £10K saved by then. We will then take our mortgage down to £75K. I cannot see the market in Inverness dropping so far that our house will be worth less than 85K so I think we should be okay to secure a 90% deal at some point. Will probably sit on the SVR and overpay for a wee while is we are feeling brave.

Anyway those stats may be a wee bit misleading if there are more people like us.

I think you may be in for a shock....

mewbie_2

geoffky wrote: »

Andy Thwaites, director of insight at GfK Financial

That's the job I want. Or maybe director of newspeak.

ukcarper

baileysbattlebus wrote: »

It seems high to me too

In England there are 21 million households - for the Uk it's about 25 million

Of the 21 million in England - 14.6million owner occupied homes. The rest are rented.

Of the 14.6million owner occupied home 6.6million are mortgage free.
7.97million homes are mortgaged.

Are they seriously trying to say 60% of mortgaged homess are in negative equity?

I think people tend to forget how many people are mortgage free.

The figures are from the end of 2008

Wotking lunch came to the same conclusion last friday

It's hard to believe that 50% of current mortgages were taken out between say Jan 2004 & Dec 2008 and that all of them were for at least say 75% of property value

ManAtHome

baileysbattlebus wrote: »

7.97million homes are mortgaged.

Are they seriously trying to say 60% of mortgaged homess are in negative equity?

From October 2008 - 11.7 million mortgages (notes to editors at the bottom) http://www.cml.org.uk/cml/media/press/1808 - as you say, still seems like a (too?) big number. I have seen press reports that close to a million are behind in their payments though.

b0rker

geoffky wrote: »

I think you may be in for a shock....

You know a lot about the Inverness housing market?

I love the way the mad bears on this forum spout about UK average house prices making huge generlisations about all the massively different markets throught the UK.

Anyway I shouldn't really waste my time counter arguing against a rabid bear's points as there is no rational discussion with them just pure blind faith.

torontoboy45

geoffky wrote: »

New research has revealed that up to five million home owners could be in negative equity by the end of 2009, if house prices continue to fall.
An estimated 3.8m people either already owe more on their mortgage than their home is worth or are about to. And another 1.2m will be hit if house prices drop by a further 10% to 20%, according to research group GfK NOP, the market research company.
The group also claims around 14% of people who are already in negative equity may be in financial difficulties. Single people aged between 25 and 34, young couples and younger families are most likely to find themselves in trouble. That is because they are likely to have taken out mortgages with high loan to value ratios near the peak of the housing market.
Potential Welfare disaster
GfK NOP said anyone who took out a mortgage and around half of those who have remortgaged since 2005 are likely to be in negative equity, or be very close to it.
It has also warned an estimated 7.2m planning to use their home as part of their pension are also likely to be hit by falling house prices.
Andy Thwaites, director of insight at GfK Financial, said: 'The shift to negative equity has the potential to be a mammoth welfare disaster for the nation.The reality is that if there are further job cuts, the problem will become significantly worse.'
The research, which was based on responses from 60,000 people, also found only one in 10 potential first-time buyers had a deposit of at least 10%.

http://www.home.co.uk/guides/news/story.htm?five_million_home_owners_face_negative_equity

there seems to be a few churlish individs around today who can't be !rsed to thank you - I'm surprised I'm the 1st, given the OP was made 10hrs ago.
this is one publication that I don't read, so I can't comment on the veracity.

but thanks anyway.

SandC

ukcarper wrote: »

Wotking lunch came to the same conclusion last friday

It's hard to believe that 50% of current mortgages were taken out between say Jan 2004 & Dec 2008 and that all of them were for at least say 75% of property value

There is the issue of remortgaging and taking equity as cash. That has been the slush fund for a lot of home owners over the past few years.

System

The easiest way to solve a lot of problems would be for some kind of guarantee to be placed that says interest rates will not go above a certain rate. If I knew even roughly what was in store for me then I could set a budget, at the moment I'm saving every single penny because everything is unknown. If The government want us to spend they need to help us work out what we can safely spend.

Either that or force banks to let people remortgage. I'd bite someones hand off for a 5% fix for 5 years.

I doubt any of that is possible of course, I'm obviously no financial expert

ukcarper

SandC wrote: »

There is the issue of remortgaging and taking equity as cash. That has been the slush fund for a lot of home owners over the past few years.

Eeven taking that into account I still find it hard to believe