Whats going to happen to those who cant remortgage??

DaiJoA

wymondham wrote: »

I think this could go downhill fast as First Time Buyers must be drying up at a drastic rate with needing much larger deposits recently. Without people moving up the whole process grinds to a halt, so if you're in dire straits and don't have the option of selling as nobody can buy then options run out fast...

This is my worry - we wouldnt have been able to get this house if it wasnt for NR, so i guess i do have to be reasonably greatful for that even if they aren't helping us now!

we're pretty lucky in that we brought a family sized house for cheap money and did a lot of work on it, so we're not in a typical first time buyers house - these, the terraces etc, will most probably be brought up by investors with £ signs in their eyes because they're so easily rentable.

In actual fact something that is does seem to be a new trend is that two couples who we've had round recently are actually downsizing - we're in a bigish 3bed ex council house - just so they can live within thier means again. Hence my confidence of selling here.

But u r right it is in serious danger of drying up unless banks start offering decent 1st time buyer mortgages again. The thing is people like us who were in rented were paying such high rents - £700 for us - that a mortgage of £810 looks affordable, and you take it gratefully with both hands, little expecting this current situation.

mpsavuk

Judging by the content of this thread i can only conclude that it is going to real ugly out there in property land over the next few years.

So was the recent overhyped and over inflated property market really just a fantasy that could not go on forever?

It seems to be turning out that way!

missk_ensington

Thanks DaiJoa, I'm not feeling the pinch...yet, but Im prepared to make cut backs if things get worse. You;re right about food, I spend £50 a week for me and my son (age 4) and I could definately reduce that but I dont really want to because I like my Cravendale and Lurpack and salmon fillets already skinned and boned for me, but I have started freezing stuff. Last month I bought a dozen little 49p tupperware things and now have 12 days worth of home made lasagne, spaghetti marinara, hot pot and dumplings, broth.... in the freezer. Im ashamed to say I'd normally chuck the left overs in the bin! Wont do that anymore though! I know people on Old Style can feed a family of 4 of £20 a week, but I think £7.50 a day for qualilty food is quite reasonable...I just need to work on the KFC addiction! Although after watching James Fowl Dinners Im not sure I'll ever eat it again! lol

Ice Skating, I would like to be pro one day. Im clinging onto the hope of being able to tour in shows in 10 years or so when I'm good enough, but its not a cheap hobby! But I think well I dont smoke, dont drink much, dont buy designer clothes, so I need to have at least one vice! :-)

missk_ensington

mpsavuk wrote: »

Judging by the content of this thread i can only conclude that it is going to real ugly out there in property land over the next few years.

So was the recent overhyped and over inflated property market really just a fantasy that could not go on forever?

It seems to be turning out that way!

People are always happy when their house is going up by £2,000 a month in value, theyre borrowing on the strength of it, going on luxury holidays, buying a new car, maxing on the credit cards because the house is making them money, buying second properties (or third, or fourth...) but the bubble has burst and people dont like it, but they shouldnt have lived beyond their means in the first place. I mean, what sort of idiot would get a 125% mortgage?!?!?!?! What could possibly be so urgent that you need thousands extra? I bet more people spent it on a new 4x4 or a holiday, and nowe they're moaning they cant remortgage, in negative equity and gonna be re-possessed so I dont have a lot of sympathy!

Dick_here

missk_ensington wrote: »

I could afford 8% but it'd mean, like you said, fewer McDonalds and no holidays etc and Id have to give up ice skating altogether which costs me £100 a week

This is a wind-up, right ? :rotfl:

missk_ensington

!!!!!!_here wrote: »

This is a wind-up, right ? :rotfl:

Errr, no, why?

neas

Its going to be a bloodbath . The little guys... people born too late... have been s hit on by the older generation... the time is night for purging fires of the hpc .... only through destruction can rebirth occur .

missk_ensington

neas wrote: »

Its going to be a bloodbath . The little guys... people born too late... have been s hit on by the older generation... the time is night for purging fires of the hpc .... only through destruction can rebirth occur .

Sorry youve completely lost me! Is this relevant?

neas

missk_ensington wrote: »

People are always happy when their house is going up by £2,000 a month in value, theyre borrowing on the strength of it, going on luxury holidays, buying a new car, maxing on the credit cards because the house is making them money, buying second properties (or third, or fourth...) but the bubble has burst and people dont like it, but they shouldnt have lived beyond their means in the first place. I mean, what sort of idiot would get a 125% mortgage?!?!?!?! What could possibly be so urgent that you need thousands extra? I bet more people spent it on a new 4x4 or a holiday, and nowe they're moaning they cant remortgage, in negative equity and gonna be re-possessed so I dont have a lot of sympathy!

your my hero

DaiJoA

missk_ensington wrote: »

People are always happy when their house is going up by £2,000 a month in value, theyre borrowing on the strength of it, going on luxury holidays, buying a new car, maxing on the credit cards because the house is making them money, buying second properties (or third, or fourth...) but the bubble has burst and people dont like it, but they shouldnt have lived beyond their means in the first place. I mean, what sort of idiot would get a 125% mortgage?!?!?!?! What could possibly be so urgent that you need thousands extra? I bet more people spent it on a new 4x4 or a holiday, and nowe they're moaning they cant remortgage, in negative equity and gonna be re-possessed so I dont have a lot of sympathy!

exactly, its all about the image nowadays - possibly this crunch will have come at just the right time for the new generation, although its killing the rest of us maybe some good will come out of it - somethings got to give before the xbox generation get to the age of having credit cards. my attitude was only bourne out of growing up and having nothing --- i'm only 22! My dad worked for BT and all through the strikes we ate beans on toast. We lived on the edge of an estate and none of my schoolfriends had anything either, so we all grew up in the same boat.

Then in 95 we moved to a different, more affluent area. My bro and sis, now16 and 13, grew up as xboxers, my mum and dad, the same sensible, poor mum and dad who brought me up, gave them so much, never said no because their friends had everything and they wanted it to.

We HAVE to start saying no to our children, our son is 14m and he won't be given anything on a plate. I'm not scared to go into my overdraft if I have too, but we've sacrificed a lot and we'll have to really save once we go into rented.

Something really needs to give before it goes back to the 80's - i know interest rates were massive then, but surely the ratio of wages - mortgage/debt payments are probably roughly the same now? Its just that we'll all be poor but with nice cars and houses!