1 in 9 mortgage holder in NE

kennyboy66_2

ad9898 wrote: »

I believe it's much higher than 1 in 9, don't forget many people will not acknowledge what price drops their property has taken, and if they were to try and sell it for what they think it's worth it would probably languish in the EA's window for a year like most do now, before reality hits home and they drop the price or take it off the market until things 'return to normal.'

The report was based on BoE estimates, so nothing to do with people not acknowledging what price drops their own property has taken.

It could be more than 1 in 9 (although probably not significantly) as its really just an educated guesstimate.

Dan:_4

These folk in NE are probarly enjoying cheap mortgage payments right now, and if they have any sense, are using the extra 'savings' to overpay the mortgage balance.

At the end of the day, It really doesn't matter being in NE unless you want to move, then it will be expensive to buy yourself out!

Lotus-eater

Dan: wrote: »

These folk in NE are probarly enjoying cheap mortgage payments right now, and if they have any sense, are using the extra 'savings' to overpay the mortgage balance.

At the end of the day, It really doesn't matter being in NE unless you want to move, then it will be expensive to buy yourself out!

I expect if you want to remortgage it wouldn't be that good either.

I get the general feeling from the populas, that they think the worst is over and we can soon get back to normal, indeed many people haven't even noticed anything happened at all.
Because of this I'm finding that people are not paying off their mortgage but enjoying the extra money they have in their pocket, oh they might have done a bit while the papers were telling them how bad it is, but they are now full of green shoots.

Back to credit cards

Harry_Powell

Dan: wrote: »

These folk in NE are probarly enjoying cheap mortgage payments right now, and if they have any sense, are using the extra 'savings' to overpay the mortgage balance.

At the end of the day, It really doesn't matter being in NE unless you want to move, then it will be expensive to buy yourself out!

Is there any evidence that they are doing this, though? Or are they partying like it's 1999?

Dan:_4

Harry_Powell wrote: »

Is there any evidence that they are doing this, though? Or are they partying like it's 1999?

Why do you need evidence, it's up to them how they spend their money.

ad9898_3

Dan: wrote: »

Why do you need evidence, it's up to them how they spend their money.

It is indeed, as long they don't start crying when rates go up and they want a handout because they can't afford their mortgage.

ad9898_3

Lotus-eater wrote: »

I expect if you want to remortgage it wouldn't be that good either.

I get the general feeling from the populas, that they think the worst is over and we can soon get back to normal, indeed many people haven't even noticed anything happened at all.
Because of this I'm finding that people are not paying off their mortgage but enjoying the extra money they have in their pocket, oh they might have done a bit while the papers were telling them how bad it is, but they are now full of green shoots.

Back to credit cards

I agree, it would be interesting to see the figures on personal debt, excluding mortgages to see if this figure is shrinking or beginning to grow again.

lostinrates

halight wrote: »

we Brourt our house at the start of 2006. By now i would say that we are one of the one in nine that are now in Negative equity Were we live there have been a lot of price falls (west midlands)
I lost my job in january so its not like we can up our payments at the moment to try and being our debt down a bit to get back into equity. We only put down a 5% depodtit. We have dont a lot of work to the house which would have inproved the price. And we made some over payment when i was still working. We paid £86000 for the house and put £6000 down so that left us with an £80000 debt on the place. I would say that we wpuld get around the £80000 for it. If we could sell the house market around here is not moveing at all really there has been a high number of job loses in our aera.

Good luck with job hunting. Is there much work in your area?

Dan:_4

ad9898 wrote: »

It is indeed, as long they don't start crying when rates go up and they want a handout because they can't afford their mortgage.

That's their problem. I always make sure I can afford my mortgage on at least 8%, and anything under I consider a bonus.

Mini_Bear

Urgh this whole "prices will go back to normal" phrase really annoys me. 2007 peak prices were not "normal". 125% mortages, 6x salary mortgages were not "normal". neither is 0.5% base rates which is the only reason we are havin a sort of spring bounce. if base rates was around the 5% mark this crash would be utterly catastrophic.
incidently i know of several people who have made large credit purchases this month (new sofa, new car). they are clearly very confident of the economy. i wish i shared their positivity.