Mortgage hostage

Lilybob

We bought when rates high and now are a mortgage hostage as prices have dipped and in negative equity- what can we do - on an interest only mortgage with 10 yrs left - Help 

Slithery

Do you actually have to sell at this point in time?

If not then there's nothing to worry about.

MobileSaver

Lilybob said:

We bought when rates high and now are a mortgage hostage as prices have dipped and in negative equity- what can we do - on an interest only mortgage with 10 yrs left - Help 

Rates haven't been high for over a decade! Where in the UK are house prices lower now than they were 10 or more years ago?

Is your repayment vehicle on track to pay off the mortgage in 10 years time?

aoleks

Something’s not right here…

user1977

MobileSaver said:

Lilybob said:

We bought when rates high and now are a mortgage hostage as prices have dipped and in negative equity- what can we do - on an interest only mortgage with 10 yrs left - Help 

Where in the UK are house prices lower now than they were 10 or more years ago?

Plenty of examples of that, especially if you bought at the height of the market just before the financial crisis in 2008.

canaldumidi

Lilybob said:

We bought when rates high ...... an interest only mortgage with 10 yrs left - Help 

so purchased maybe in 2007?

p00hsticks

Slithery said:

Do you actually have to sell at this point in time?

If not then there's nothing to worry about.

There is potentially if they don't have any vehicle in place to redeem the mortgage in ten years time ....

Thrugelmir

Start paying down the debt you owe. Go through your outgoings and see where savings can be made. 

Sistergold

This does not make sense? It’s what potentially gives getting a mortgage a bad name. How do you just pay interest without sorting out the negative equity? How do you stay this long with no plan? You should have been paying down the debt by now if this is truly a real question, for now it seems like a fishing thread. 

theartfullodger

Bankruptcy is an option if negative equity way more than any other assets you have.

But the rest of us end up effectively paying...

Flugelhorn

user1977 said:

MobileSaver said:

Lilybob said:

We bought when rates high and now are a mortgage hostage as prices have dipped and in negative equity- what can we do - on an interest only mortgage with 10 yrs left - Help 

Where in the UK are house prices lower now than they were 10 or more years ago?

Plenty of examples of that, especially if you bought at the height of the market just before the financial crisis in 2008.

we bought in early 2008 and got about 12% more when we sold in mid 2020 - suspect we would have made a loss for many of the intervening years