16,000 are being refused a mortgage each month

pizzagirl

chucky wrote: »

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

What poppycock. Statistically speaking, averages are totally relevant to most of us. You don't know alot about statistics, do you? :rolleyes:

Bluefish_2

bluey890 wrote: »

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?

I think it's 5.49% at the moment but I'm assuming this moves with the BoE Base Rate? I know this is probably a stupid question (my knowledge of mortgages is minimal) but if we can't remortgage are there any penalties if we go onto this?

mbga9pgf

Only paying the SVR. you typically dont hit any fees, it was the SVR the lender was planning to make its cash on anyway. They certainly arent making cash with the historic low tracker rates anyway. My advice? Save if your job isnt secure, if it is, pay off as much mortgage off whilst you have the chance.

Nylontokyo

Yoshua wrote: »

These 16,000 people every month will just have to be patient and then as prices fall eventually sellers will drop in line with what the bank will actually lend them.

It has to happen. The sooner the better.

This is exactly the way I see it. The banks are only going to lend on what they know house prices are really worth.

The banks know we have a long way to fall yet.

They will lend on the value of what house prices should be and will be before not too long.

Thrugelmir

StevieJ wrote: »

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.

Thats because they rose over 100%, doubled, in value in a 5 year period from 1999 to 2004.

Often forgotten that this HP balloon was pumped up for many years. As i've written before the origins date back far longer than most people realise.

As a stat. On a 25 year mortgage you'd only repayed 40% of the capital balance owing after 15 years on a 25 year mortgage. So a lack of equity in property could potentially hit a lot of people.

carolt

chucky wrote: »

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

Really?

Sounds v unlikely -where are you chucky - details please.

carolt

StevieJ wrote: »

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.

But you won't have paid off any of the mortgage, at least no more than if you'd put the money saved whilst renting into your bank account over that period. Rental costs have been cheaper than an interest-only mortgage in all the areas I've been looking at since 2004.

chucky

carolt wrote: »

Really?

Sounds v unlikely -where are you chucky - details please.

it's on post 29 further up - graph from the Land Registry.

don't forget it's an average - some will be much less but others will be holding their value above that Jan 2007 value.

System

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.

I was in a similar position to you, my lender didn't even mention the current value of my place, they just gave me another deal. (Abbey, fyi).

Phone them up and see what they offer. They may ask you to make a capital repayment to clear some of the debt, which isn't necessarily a bad thing if you can afford it.

There was an article recently telling us that home owners in negative equity are actually getting better deals than those that aren't.

Some lenders will even pay some debt off for you!

What I'm saying is, you won't know until you phone, and once you know what your situation is for definite, you'll feel a bit calmer. I did anyway.

carolt

No, you've lost me - that appears to apply to all of greater london v all of england.

I was thinking a bit more specific.

Where is this utopia where house prices are still at peak levels?