Advice - negative equity

Koldweather1

My guess is the worry with interest rates suggests they have over stretched and so they are worried that they won't be able to afford repayments once rates go up. Hence why prices DO matter due to the LTV. Higher LTV obviously going to lead to difficulties.

parkrunner

sarahc81 wrote: »

Thank you for your responses (other than the one that was rude). The reason why we are considering selling now is because if they have continued to fall and not recovered then should we need to sell at a later time we may not be able to do so. We would be unable to afford to buy another property without selling.

This was intended as a long term purchase and not an investment. We are living in the property having lived with my husband's mother for several years. But that doesn't mean we're happy with the price coming down. And if the outlook is such that they may continue to fall then recovering what we paid, moving back with his mother, and buying again when things stabilise is something we've been considering. If it's better to sit and wait then that's of course what we would prefer. That's why I was asking for advice as we're unsure what is the best option at the moment.

So absolutely no point in selling up then.

Cheeky_Monkey

warby68 wrote: »

I'd love to have been a fly on the wall when you tried to tell your neighbours how to price their property :eek:

:rotfl::rotfl::rotfl: Me too!

Cheeky_Monkey

By the way OP, apparently Europe is running out of butter so you might want to start panic buying now .......... just sayin' :rotfl:

lincroft1710

In the words of Lance Corporal Jones and also The Hitchhiker's Guide to the Galaxy-

DON'T PANIC

You will not lose any money until you come to sell and if prices are decreasing then your next house will probably also have fallen in value. If you are happy in your house and it meets your needs, you don't have to move.

The paragraphs about suing and trying to tell your neighbours how to price their house did provide a good laugh.

Crashy_Time

Hopefully no one on an internet forum advised you buy at the time?

ANDR£W

Homes are for Nesting not Investing ( that's my view & I know it isn't one shared by everyone)

Tomg84

Houses are long term purchase - while they generally go up in value - they can go down also. Unfortunately nobody can predict the future - prices may continue to decline, stagnant or increase in your area. If you are not thinking about moving - just relax and try and not to worry about the value of your home. After all - its your home, what its worth is irrelevant unless you need to move / remortgage.

Crashy_Time

Tomg84 wrote: »

Houses are long term purchase - while they generally go up in value - they can go down also. Unfortunately nobody can predict the future - prices may continue to decline, stagnant or increase in your area. If you are not thinking about moving - just relax and try and not to worry about the value of your home. After all - its your home, what its worth is irrelevant unless you need to move / remortgage.

How much you paid (borrowed) becomes relevant if interest rates rise, even if you want to stay put.

bowlhead99

Crashy_Time wrote: »

How much you paid (borrowed) becomes relevant if interest rates rise, even if you want to stay put.

If you think rates will rise, you can spend a bit of money fixing your rate so it doesn't change on you for a long time, and start putting money aside to repay some of the debt (if necessary) when the fixed term expires.

Makes more sense than selling a house which you like for less than you just paid for it, just to try to buy it back again at a cheaper price later - which you might spectacularly fail to achieve.