pulling out of buying flat

Crashy_Time

That`s right.

[Deleted User]

blue_max_3 said:

matt90sw said:

I'm very worried there may be a crash and when I come to remortgage in 2 years the flat would be in negative equity and I will not be offered another mortgage. This is my first time buying and its been an absolute nightmare, I'm getting bad feelings about the whole thing.

You don't need another mortgage when the two years are up. You are on a product and after the term, it will revert to the standard variable rate, or you can elect to go on another product if available. But you shouldn't need to remortgage.

In the normal course of events yes - but everyone remember Northern Rock and no new products offered when it collapsed and people stuck on high SVR and unable to remortgage due to negative equity ! I’ll never forget those heart rendering stories of people being stuck 
we dont know who will survive this disaster, which banks have debts owed by millions of companies that may fold. Its just the so unknown and scary 
personally myself ( BTL ) and my son (FTB) are just waiting and not taking any risks till we know the fall out of all this 

diggingdude

Densol said:

blue_max_3 said:

matt90sw said:

I'm very worried there may be a crash and when I come to remortgage in 2 years the flat would be in negative equity and I will not be offered another mortgage. This is my first time buying and its been an absolute nightmare, I'm getting bad feelings about the whole thing.

You don't need another mortgage when the two years are up. You are on a product and after the term, it will revert to the standard variable rate, or you can elect to go on another product if available. But you shouldn't need to remortgage.

In the normal course of events yes - but everyone remember Northern Rock and no new products offered when it collapsed and people stuck on high SVR and unable to remortgage due to negative equity ! I’ll never forget those heart rendering stories of people being stuck 
we dont know who will survive this disaster, which banks have debts owed by millions of companies that may fold. Its just the so unknown and scary 
personally myself ( BTL ) and my son (FTB) are just waiting and not taking any risks till we know the fall out of all this 

I wouldn't focus too much on that, didn't they have like 100% or 125% mortgages?

MovingForwards

diggingdude said:

Densol said:

blue_max_3 said:

matt90sw said:

I'm very worried there may be a crash and when I come to remortgage in 2 years the flat would be in negative equity and I will not be offered another mortgage. This is my first time buying and its been an absolute nightmare, I'm getting bad feelings about the whole thing.

You don't need another mortgage when the two years are up. You are on a product and after the term, it will revert to the standard variable rate, or you can elect to go on another product if available. But you shouldn't need to remortgage.

In the normal course of events yes - but everyone remember Northern Rock and no new products offered when it collapsed and people stuck on high SVR and unable to remortgage due to negative equity ! I’ll never forget those heart rendering stories of people being stuck 
we dont know who will survive this disaster, which banks have debts owed by millions of companies that may fold. Its just the so unknown and scary 
personally myself ( BTL ) and my son (FTB) are just waiting and not taking any risks till we know the fall out of all this 

I wouldn't focus too much on that, didn't they have like 100% or 125% mortgages?

125% for the mortgage, deposit and improvements, was a mortgage and secured loan, which was always going to end badly.

[Deleted User]

diggingdude said:

Densol said:

blue_max_3 said:

matt90sw said:

I'm very worried there may be a crash and when I come to remortgage in 2 years the flat would be in negative equity and I will not be offered another mortgage. This is my first time buying and its been an absolute nightmare, I'm getting bad feelings about the whole thing.

You don't need another mortgage when the two years are up. You are on a product and after the term, it will revert to the standard variable rate, or you can elect to go on another product if available. But you shouldn't need to remortgage.

In the normal course of events yes - but everyone remember Northern Rock and no new products offered when it collapsed and people stuck on high SVR and unable to remortgage due to negative equity ! I’ll never forget those heart rendering stories of people being stuck 
we dont know who will survive this disaster, which banks have debts owed by millions of companies that may fold. Its just the so unknown and scary 
personally myself ( BTL ) and my son (FTB) are just waiting and not taking any risks till we know the fall out of all this 

I wouldn't focus too much on that, didn't they have like 100% or 125% mortgages?

100% the rest of was unsecured and separate
There is not much difference between 95% and 100% and they didnt have the added risk of HTB 

steampowered

If you are a first time buyer with a minimal deposit (i.e. less than 10%), I'd be tempted to wait and see what happens with house prices over the next few months.

Crashy_Time

Very good advice.

RelievedSheff

Densol said:

blue_max_3 said:

matt90sw said:

I'm very worried there may be a crash and when I come to remortgage in 2 years the flat would be in negative equity and I will not be offered another mortgage. This is my first time buying and its been an absolute nightmare, I'm getting bad feelings about the whole thing.

You don't need another mortgage when the two years are up. You are on a product and after the term, it will revert to the standard variable rate, or you can elect to go on another product if available. But you shouldn't need to remortgage.

In the normal course of events yes - but everyone remember Northern Rock and no new products offered when it collapsed and people stuck on high SVR and unable to remortgage due to negative equity ! I’ll never forget those heart rendering stories of people being stuck 
we dont know who will survive this disaster, which banks have debts owed by millions of companies that may fold. Its just the so unknown and scary 
personally myself ( BTL ) and my son (FTB) are just waiting and not taking any risks till we know the fall out of all this 

We were one of those stuck with an NRAM mortgage in negative equity. We bought at the end of 2007 right before the crash.

It really was not the end of the world. We kept up with the mortgage repayments and kept chipping away at the mortgage balance. We still had a roof over our heads and somewhere to call home. We just had to stay there longer than the initial 5 years we had anticipated and paid a lot more in interest than we would have liked.

We finally moved last year 12 years after buying that house. We are really not bothered what happens with house prices this time as we have no plans to move from this house at all. Having been in negative equity before it isn't something we are overly bothered about.