Second-stepper experiences: Squeezing through the bottle neck?

PinkNeon

Just wondered if anyone has managed to make it over to the other side of second stepping if you bought originally at the 2007 peak and found yourself in negative equity?

This is not a grumble but faced with reality all around me I wondered if it's even a possibility to buy a bigger property..

We went with NRAM and have the dreaded loan on top. Now in negative equity and my partner on a Payplan, but two children in our 1 1/2 bed cottage; no garden, stir crazy-ish.. :eek:

My wage has gone up substantially since we originally took out our mortgage, but I am interested to know amongst the negative complexities etc if anyone has managed to move in a similar situation and if so - how did you?

ETA: sorry I think I may have put this in the wrong bit...

laurel7172

Bought in 1989...sold in 1996 for 2/3 of the mortgage.

Put our payrises into saving up, I'm afraid. It was a long haul.

michaels

Had first house for 9 years, DIY extended in to the loft even though it wasn't really big enough when we needed more space.

PasturesNew

Bought SO/studio (mezzanine bed) in 90/91, sold in 97, no job, single, still 5% in negative equity - I wrote a cheque out to cover it.

Puddleglum

We bought in 1991 and sold in negative equity in 1995. That was with an endowment mortgage and we were fortunate that DH was able to take voluntary redundancy allowing us to pay up and move.

Since then we have had 2 repayment mortgages. Negative equity was pretty bad but once things started to improve the memory faded quite quickly.

olly300

laurel7172 wrote: »

Bought in 1989...sold in 1996 for 2/3 of the mortgage.

Put our payrises into saving up, I'm afraid. It was a long haul.

What were your payrises percentage wise then?

One of the problems now is stagnant wages.

[Deleted User]

1st house 1981 second in 83,bought first for 10k sold for 17k,bought second for 17k(much bigger diff area)with a 95% mortgage and trousered the change
those were the days

laurel7172

olly300 wrote: »

What were your payrises percentage wise then?

One of the problems now is stagnant wages.

I honestly don't think I ever got a payrise for nothing . Promotions. Additional qualifications studied for while working full time. And that against a backdrop of high inflation, rising interest rates (we were the envy of our friends with an interest rate fixed at a mere 12.4%...some of them were paying 17% :eek: ) in which the threat of redundancy loomed as frighteningly as it does today. Just because it's over doesn't mean it wasn't extremely tough-desperate at times.

Thrugelmir

PinkNeon wrote: »

and have the dreaded loan on top.

If you consolidate your debts and spend the next 25 years repaying them. Then yes , moving up the ladder isn't easy. Life is a series of choices. How you your spend money being one of them.

olly300

laurel7172 wrote: »

I honestly don't think I ever got a payrise for nothing .

I never said you did.

I wanted to see if you actually had pay rises that matched inflation.

I'm of the cynical view that it never really happened.

laurel7172 wrote: »

Promotions. Additional qualifications studied for while working full time.

At the moment wages are stagnating and have been for a while. I know plenty of people who do additional qualifications or get a promotion but whose only way of getting an actual pay rise is to move firm. I had to do that myself before I became self-employed and it's a common moan.

laurel7172 wrote: »

And that against a backdrop of high inflation, rising interest rates (we were the envy of our friends with an interest rate fixed at a mere 12.4%...some of them were paying 17% :eek: ) in which the threat of redundancy loomed as frighteningly as it does today.Just because it's over doesn't mean it wasn't extremely tough-desperate at times.

My siblings range in age from 55 to 25. I have a brother who suffered from negative equity due to the boom then. I also have friends who suffered due to high interest rates i.e. had to do 2 jobs or handed back the keys.

I know from talking to my older siblings and older friends there is nothing like the level of job insecurity there is today for younger workers if they could get a job. The people I knew who were made redundant then were often my friends' parents i.e. older workers with mortgages and kids.

Oddly at that time a few teachers in my school were made redundant, and my mum's civil service department was "restructured" with people forced to leave or retire, hence I never brought into the theory that public sector jobs are secure.