Buying a house after a property market crash?

getmore4less

wesleyad wrote: »

One problem with this is if you have a reasonable mortgage say (80% LTV) and the prices crash, then when you come to remortgage they might not offer enough (as you are now in negative equity), forcing you to stay with the same mortgage company on crap rates.

The smart borrower takes that into account and uses a lender with a consistent history of decent retention rates and reasonable follow on rates.

Most have decent rates anyway.

theartfullodger

It was very interesting selling over a property crash, whilst divorce (the reason for selling...). Don't ask for details, I'll start crying.

Novice_investor101

I bought mine at the bottom of a crash - in Spring 2013. I didn't know that at the time tho. In fact, as a FTB, I was pretty clueless. I just thought, at 31, if I don't do it now I never will. So I found a house for £100k. All similar houses had a similar price & were within my affordability. I had a 25% deposit.

5 years on it is now worth £137k & my LTV is 48% - partly due to overpaying, mostly due to increase in the value. I'm not worried if house prices crash as I won't be selling anytime soon, I'm 9 months into a decent 5yr fix & my outstanding mortgage amount will still be the same even if the LTV changes.

PhilE

There may not be a property crash. Or there could be a major one. We don't know what sort of Brexit deal we'll be getting right now. If its a no deal Brexit, then as much as we could possible say, there will most probably be some form of property crash.
Will it affect your area? No idea.

You could use the present uncertainty to get a good deal, or you could wait and get a better deal. Or wait and get a worse one.

It truly is impossible to say right now, better to put your needs first maybe.

Davesnave

theartfullodger wrote: »

It was very interesting selling over a property crash, whilst divorce (the reason for selling...). Don't ask for details, I'll start crying.

Ah yes, the 3 Ds that keep people selling in a crash: Death, Debt and Divorce....


To those I'll add Decrepitude. As a carer to someone who lived to 95, I was getting on a bit when finally free to do my own thing. Buying a project property looked like it might only be possible/sensible for a few more years.

And speaking of Ds, there was that Alvin D Hall, who was always telling us, "Buy when others are fearful."

OK he wasn't talking about property, but I thought the same principle applied.

getmore4less

Once in you stay in,

the only people that have to think about when to buy are those starting out as soon as it is cheaper to rent the money and you think you can stay for 5y+ get in.

There is a case for those downsizing/relocating to consider a bit of timing but can still get caught out.

Pixie5740

I started looking to buy my first property right before the 2008 crash. I remember all the mortgage products I was considering getting pulled and being devestated. Prices had been rising faster than I could save and now that I was ready to buy I couldn't get a bloody mortgage. It all worked out in the end though and I was able to pick up a flat that someone had part exchanged with a builder with them retaining 25% equity which meant I needed a smaller mortgage. In short smaller property price, smaller pool of mortgages available.