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Debate House Prices
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Moneyweek: Why this housing crash could be worse than the 1990s
Comments
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pickles110564 wrote: »Maybe because they are not like the youth of today who want everything before they have saved to afford, like their 50inch plasma's , designer clothes etc.
Rosie Millard, is that you?
If so, how's that debt coming sweetheart? I'll be in the market for one of those flats of yours soon enough.;)0 -
We didn't. We used the low interest period to overpay our mortgage. OK, so we still watch a 32" CRT TV, but we watch it happier in the knowledge we have 15% LTV (probably soon to be 30%!)
Dude, you know the losses come out of your equity first right? falling prices do not increase increase your LTV.0 -
Laughing_Man wrote: »Dude, you know the losses come out of your equity first right? falling prices do not increase increase your LTV.
Er really - loan stays the same, value falls therefore loan to value increases!Adventure before Dementia!0 -
Laughing_Man wrote: »Dude, you know the losses come out of your equity first right? falling prices do not increase increase your LTV.
Falling prices most certainly DO increase the LTV. It's the amount of the loan expressed as a percentage of the market value of the house.
ie. LTV = (size of mortgage / market value of house) x 100 %
As prices fall, the LTV goes up which is important if you are on a fix and want to remortgage instead of going on the SVR when it runs out.
This is going to hit a lot of people as they try to refinance their mortgages - generally an LTV of 90% or less is now required. And currently, SVRs are pretty nasty things being around 7% and higher compared to fixes of maybe around 4%.
That means anyone who bought in the last two or three years could find their monthly payments almost doubling. :eek:
Why do you think people here have been warning others not to buy????--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
My memory of the 1990s crash was a lot worse than this...so far.Been away for a while.0
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Just out of interest, has moneyweek ever been right about anything?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Running_Horse wrote: »How many people had monthly payments double?
Mine are currently less than a 1/5th of what they were in 2007Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
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