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Debate House Prices
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If House Prices Drop Another 40% - Who’s at risk of Negative Equity?
Comments
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Makes very little difference. A house bought 10 years ago with only 20% on the mortgage is still worth 20-30% less than it did at the peak of 2007. Bang! And the Equity is gone!0
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People may have to pay their mortgages, live in their houses and get on with their lives.
Without worrying over graphs, statistics and the government screwing everything up.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
People may have to pay their mortgages, live in their houses and get on with their lives.
Without worrying over graphs, statistics and the government screwing everything up.
Is'nt that what everybody outside of MSE do anyway.Official MR B fan club,dont go............................0 -
Surely many people who bought 10 years ago or more are looking at loans currently of 30% or less - unless they MEW'ed. In most cases, if they've been paying a reasonable amount to pay off the loan, it could be a lot less than 30%.
For BTLs, if you get a high enough initial yield it pays off any loans pretty quickly. Of course lots of BTL'ers bought unsuitable properties at yields that were too low.
Unlikely takes 15 years to repay 40% of capital owing on 25 year mortgage0 -
Thrugelmir wrote: »Unlikely takes 15 years to repay 40% of capital owing on 25 year mortgage
I think you are forgetting that the house has increased in value, eg
House price 1999 50k
House price 2009 115k
Current o/s 37k
LTV 32%'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I think you are forgetting that the house has increased in value, eg
House price 1999 50k
House price 2009 115k
Current o/s 37k
LTV 32%
You are quite correct.
Average mortgage only lasts 7 years as people move up the ladder.
So a lot of people took advantage to step up.
Current average o/s mortgage is around £115k so not huge equity against average house price0 -
Makes very little difference. A house bought 10 years ago with only 20% on the mortgage is still worth 20-30% less than it did at the peak of 2007. Bang! And the Equity is gone!
Not sure what your point is, it is still worth well over double what they paid for it.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Thrugelmir wrote: »Current average o/s mortgage is around £115k so not huge equity against average house price
Do you know how that is calculated? obviously doesn't include properties where the mortgage is paid off, but does it include mortgages with minimal balance?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
ad44downey wrote: »It's self-explanatory to me cleaver, you should try paying more attention. Or get chucky to copy and paste his favourite graph, you might be able to understand that one. If you do, let everyone else into the secret. cheers.
i think it's time that you went back to what you're good at
http://www.sam-amanda.info/forums/profile.php?mode=viewprofile&u=113&sid=600a1cd507ee774d30858e29b4f6ee4e0 -
i think it's time that you went back to what you're good at
http://www.sam-amanda.info/forums/profile.php?mode=viewprofile&u=113&sid=600a1cd507ee774d30858e29b4f6ee4e
PMSL :T:money:Official MR B fan club,dont go............................0
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