liam8282 wrote: »
Well as I live in the "North", and houses are way overpriced meaning first time buyers have relatively no chance of getting on the property ladder, maybe this is a good thing?
Obviously not for those losing their homes, but what about everybody else?
First of all, if people are living in homes they cannot afford, on many occasions they will be the people that took the gamble and bought into property during the boom time, hoping to make fast easy money selling the property on at a profit.
Unfortunately it didn't work out like that, and a lot of people will have been plunged into negative equatity when everything collapsed. Maybe it is an easier way out for some of these people not to pay the mortgage on an overpriced property.
For the rest of us, if more homes suddenly become available, maybe the house prices will start to drop to a more realistic or at least a reasonable level.
Personally I think it is a fact of life that if you cannot afford your mortgage, you will lose your property. Same goes for people who can't pay their rent etc.
Hopefully there will not be another government bailout whereby these people get their mortgages paid for them, while everybody else has to pay their own rent or mortgage.
SAMMYE wrote: »
You think the North is overpriced!?! Take a trip down south! :eek:
adwat wrote: »
Maybe this is good news for us MFW's. It might mean interest rates continue to be held low, enabling us to continue overpaying our mortgages.
brit1234 wrote: »
I hope not, many of us savers need higher rates. It is us savers that are being penalised for those reckless mortgage borrowers who borrowed to much and those who lied about their salary. Not to mention all those who used their equity as cash points such as buy to let. Just think what the level of repossessions would be if interest rates turned back to normal.
If we keep rewarding the reckless and punish the prudent then more people will act recklessly.
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