Help negative equality and new home

Arthritic_Toe

mbga9pgf wrote: »

Unfortunately not. This is the end state of uncontrolled house price inflation I am afraid. You are correct in that a lot of people are stuck, but until houses become more affordable for all (and I mean relative to wages, not some poppycock government scheme) the housing market is stuck in the doldrums. I would seriously look at pumping as much cash into overpaying the mortgage as possible, as this is a pretty efficient way of saving (assuming the interest on the mortgage is more than 3%).

My advice remains extant; overpay the mortgage by as much as you can comfortably bear, cut down expenditure and try and boost your salary, either by pay rises or by training for a better job. We have all been sold a kipper by the FSA and Labour who refused to limit mortgages as a multiple of salary.

Top advice, top comment. :T.

Property_Guru

joey298487 wrote: »

Hello,

I wonder if anyone can offer any advice..

We bought a flat five years ago for 91k but our mortage was 96k. It was 100% fixed term mortage for five years which is due to expire in Jan.

Our house was recently valued at 90k.

We really would love to move out of our flat to a house. The house would be about 130k. Which would mean at 85 % Mortage we would need 19k to puy down.

My question is this does 100% mortages still exist. Do you know of any company that does a loan specifically for people who dont have the 15%.

Would you wait till the housing market picks up or take out a 25k loan ?

Any advice would be great

Hi,
you are addressing a very real problem but you are still lucky. The real problems start once you lose you job and can't even make payments on your current mortgage, which has happened to a lot of people lately, hence the whole BMV market.
There are so many people currently stuck with their housing/property situation (due to new lenders criteria) that they've had to come up with a different strategy. What a lot of people are doing now is buying with an option. What this means is that you exchange contracts on a property but only complete in a few years time. Thus, in the meantime you pay the sellers mortgage without having to go to a bank to apply for a mortgage or anything of the sort.
You could even sell your flat on an option. This way someone can come in and take over your mortgage with the understanding that they will complete in a few years time. This is a new concept that will develop further over time.

Have a look on the web.

Eric1

Property_Guru wrote: »

Hi,
you are addressing a very real problem but you are still lucky. The real problems start once you lose you job and can't even make payments on your current mortgage, which has happened to a lot of people lately, hence the whole BMV market.
There are so many people currently stuck with their housing/property situation (due to new lenders criteria) that they've had to come up with a different strategy. What a lot of people are doing now is buying with an option. What this means is that you exchange contracts on a property but only complete in a few years time. Thus, in the meantime you pay the sellers mortgage without having to go to a bank to apply for a mortgage or anything of the sort.
You could even sell your flat on an option. This way someone can come in and take over your mortgage with the understanding that they will complete in a few years time. This is a new concept that will develop further over time.

Have a look on the web.

Just out of interest: does your company offer this wonderful service?

mbga9pgf

Eric1 wrote: »

Just out of interest: does your company offer this wonderful service?

No, but if it is the same property Guru from HPC his name is bruno and he does interesting things on youtube with an umbrella.

Running_Horse

Property_Guru wrote: »

Hi,
you are addressing a very real problem but you are still lucky. The real problems start once you lose you job and can't even make payments on your current mortgage, which has happened to a lot of people lately, hence the whole BMV market.
There are so many people currently stuck with their housing/property situation (due to new lenders criteria) that they've had to come up with a different strategy. What a lot of people are doing now is buying with an option. What this means is that you exchange contracts on a property but only complete in a few years time. Thus, in the meantime you pay the sellers mortgage without having to go to a bank to apply for a mortgage or anything of the sort.
You could even sell your flat on an option. This way someone can come in and take over your mortgage with the understanding that they will complete in a few years time. This is a new concept that will develop further over time.

Have a look on the web.

Am I the only person who has not heard of one single person doing this? I would never buy a house this way, and neither would anyone I know. If it sounds like a scheme, it has probably been dreamt up by a schemer. And a spammer.

makingbetter

I have also never heard of it, and am not sure I even understand it. Who lives in the house? Who legally owns it?

FraudBuster

mbga9pgf wrote: »

Credit Check - Big Brother is watching.

You will also need to declare any loan on your mortgage application. To not make a declaration is illegal and is mortgage fraud. Welcome to the post-credit crunch apocalypse where you have to earn a loan these days.

Check out:

http://www.nhunter.co.uk/index.html

FraudBuster

mbga9pgf wrote: »

No, but if it is the same property Guru from HPC his name is bruno and he does interesting things on youtube with an umbrella.

This one has escaped from The Swinging Piggies.

puddy

why dont you just sell the flat and rent the house, why would you put yourself in a position where you have 2 outgoings and no guarentee that you can pay either (if you lose your job and your tenants run off)

dopester

Running_Horse wrote: »

Having been in negative equity like yourself (in the 90s), I would not be brave enough to risk things getting even worse by increasing my exposure. However, in the last slump there were schemes to let people transfer their negative equity to a new property. Seem to remember hearing about similar plans this time, but until prices rise, the best way is to save and/or overpay the mortgage.

jenner wrote: »

why dont you just sell the flat and rent the house, why would you put yourself in a position where you have 2 outgoings and no guarentee that you can pay either (if you lose your job and your tenants run off)

In the last recession, my recollection of it and other people's stories of it, there were so many people struggling to hold on to what they had - their home, and trying to meet the mortgage payments.

In this recession/depression.. so many people are minded to take for-granted what they have - exposing themselves to terrible risks with schemes such as renting out existing home, whilst renting a new home. Or indeed, buying a new home they think they deserve, whilst keeping ownership of old home and seeking to rent it out.

From there its only takes a few realistic changes in circumstance.. house prices continuing to slide after all the artificial supports give way, interest rates rise, tenants of old home not paying / voids, job pay-cut or job loss. It's surreal. Television dreams of tomorrow.