16,000 are being refused a mortgage each month

Thrugelmir

chucky wrote: »

my assumption would be that people are not remortgaging as they're happy to be on their SVR for now

Happy wouldn't be the word I use. More likely trapped. As their options are severely limited.

mbga9pgf

What, with all that negative equity you mean Thrug?

Thrugelmir

mbga9pgf wrote: »

What, with all that negative equity you mean Thrug?

No just negative equity. Minimal equity, less than 25%.

Average house prices are now only 0.8% up in the 5 year period June 04 - June 09.

chucky

Thrugelmir wrote: »

No just negative equity. Minimal equity, less than 25%.

Average house prices are now only 0.8% up in the 5 year period June 04 - June 09.

yes i agree, i forgot to mention those that were re-mortgaging that didn't have at least 25% equity would find it very difficult to remortgage.

ciano125

chucky wrote: »

yes i agree, i forgot to mention those that were re-mortgaging that didn't have at least 25% equity would find it very difficult to remortgage.

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6542947.ece

Really??

carolt

Thrugelmir wrote: »

Average house prices are now only 0.8% up in the 5 year period June 04 - June 09.

What an incredible statistic. So much for 'you can't lose with housing'.

Given that during that period, it's usually been much cheaper to rent than to buy an equivalent property, not to say the thousands saved on maintenance costs in that time, really brings home to me how much better a decision it has been to rent, in financial terms, since then.

Obviously, there are non-financial reasons to buy. But in pure financial terms, it's very clear what the sensible option's been.

StevieJ

Cheaper to rent, I am surprised especially taking into consideration 20% of the mortgage you will have paid off. I must admit the first time I noticed house prices starting to bubble was the summer of 2004.

chucky

Thrugelmir wrote: »

No just negative equity. Minimal equity, less than 25%.

Average house prices are now only 0.8% up in the 5 year period June 04 - June 09.

carolt wrote: »

What an incredible statistic. So much for 'you can't lose with housing'.

Given that during that period, it's usually been much cheaper to rent than to buy an equivalent property, not to say the thousands saved on maintenance costs in that time, really brings home to me how much better a decision it has been to rent, in financial terms, since then.

Obviously, there are non-financial reasons to buy. But in pure financial terms, it's very clear what the sensible option's been.

wouldn't that all depend where you are?
i'm still at 2007 prices and that's without the positive lag in the last few months


in general terms we will find places like that statistic - to most of us it won't really matter

Bluefish_2

This is all quite depressing...

OK - we bought a property in 2007 for £225k and our mortgage is £190k. I put our details into one of those sites that estimates how much your property is worth and ours came up at £180k. We are up for remortgage - does anyone know how accurate the estimations are from those sites? Will the bank take this estimation into consideration and put us into negative equity? We are both professionals with wages that more than cover the mortgage so that side isn't an issue, its literally the value of the house I am worried about.

bluey890

Bluefish wrote: »

This is all quite depressing...

OK - we bought a property in 2007 for £225k and our mortgage is £190k. I put our details into one of those sites that estimates how much your property is worth and ours came up at £180k. We are up for remortgage - does anyone know how accurate the estimations are from those sites? Will the bank take this estimation into consideration and put us into negative equity? We are both professionals with wages that more than cover the mortgage so that side isn't an issue, its literally the value of the house I am worried about.

Valuations are very much hit and miss. Many valuations are either drive byes, electronic or are seemingly a finger in the air job. I think it very much depends on the lender. If you did have trouble remortgaging what's your lenders SVR like?