Negative Equity

SarahWhitesands

Thanks everyone, you've reassured me! My friend is just super cautious which I don't blame them. I've found a nice property but with Brexit looming just can't decide whether it's worth the risk of buying before, or holding out 6 months to see what pans out. Bloody Brexit!

Pixie5740

SarahWhitesands wrote: »

Thanks everyone, you've reassured me! My friend is just super cautious which I don't blame them. I've found a nice property but with Brexit looming just can't decide whether it's worth the risk of buying before, or holding out 6 months to see what pans out. Bloody Brexit!

Will people suddenly stop needing somewhere to live after Brexit? If you wait until Brexit is out the way then something else will come along to put you off buying.

antrobus

SarahWhitesands wrote: »

...

I've been advised by a friend that in some lenders T's & C's they have the right to foreclose for negative equity before the term of the mortgage even if you have never missed a payment??

Your friend is an idiot.:)

Why on earth would a lender want to repo if you were in negative equity and guarantee themselves a loss?

loonywitch

I was one of those unfortunate ones who bought in 2007 and went into negative equity. I never had a problem other than having to remain on the variable due it.

Mutton_Geoff

I have friends who bought a house in Surrey with a very large mortgage then knocked it down and rebuilt in a completely different style. Good job the mortgage company didn't come looking for their security during the two years it took!

Thrugelmir

SarahWhitesands wrote: »

Thanks everyone, you've reassured me! My friend is just super cautious which I don't blame them. I've found a nice property but with Brexit looming just can't decide whether it's worth the risk of buying before, or holding out 6 months to see what pans out. Bloody Brexit!

The one certainty you do face. Is that the "nice" property will be snapped up by someone else. Our currently property was built in 1934. We are only the 4th owners. Property in the road is never on the market for long. Location, location, location. People need to live somewhere. We bought at the peak in 2007. Suffered a temporary on paper loss for a while. Until the after effects of the GFC blew away.

CarrieVS

SarahWhitesands wrote: »

I've found a nice property but with Brexit looming just can't decide whether it's worth the risk of buying before, or holding out 6 months to see what pans out. Bloody Brexit!

Why do you want to buy?

Are you primarily trying to invest and make a profit? If so, Brexit might put it above your risk appetite.

Or are you looking for a home? I'm buying during Brexit because I'm ready to put down some roots and find myself a long-term home, not just a roof over my head, now that my work situation allows me to commit to one location. I want to be able to decorate how I like, use whatever candles I want, and decide for myself whether pets are allowed. I want the option of accumulating more "stuff" than I can move to another flat in a couple of car-loads.
Yes, I'll be paying down equity so that, if all goes well, I can live rent-free in the future, but I'll also have considerably higher expenses, so it's far from being a no-brainer financially. But I hope that I'll be happier.
Brexit is a worry but at least I know about it, and can insure against it to some extent by choosing a fixed mortgage for a longer term than I might have otherwise. There'll always be the possibility of something unforeseen, however long you wait.

If you're on the edge of affordability, it might not be a great idea. If you'll have a very small deposit, it might not be a great idea (even a small drop in house prices could make it hard to remortgage.) If you have any particular personal worries about Brexit - if your job is particularly likely to be affected, for instance - it might not be a great idea. Otherwise, a fixed rate mortgage can be considered insurance against the possibility of interest rates being unstable for a while, and if you'll be buying and selling in the same market when you next move, then house prices falling isn't likely to be a disaster, unless you'll be starting with very little equity.

diggingdude

Is your friend called Crashy by any chance?

Crashy_Time

https://www.telegraph.co.uk/personal-banking/mortgages/borrowers-left-high-dry-mortgage-lenders-withdraw-market/?li_source=LI&li_medium=li-recommendation-widget