Bought in 2007

Helga14

Definitely stay put as long as you can afford the mortgage, you've got a great rate fixed for five years. You'll certainly probably lose money if you sell now with all the legal costs and won't you have to pay a penalty if you get out of your mortgage.

If it were me I would overpay the mortgage so in the five years you have a better LTV ratio. In the end if you are paying rent you are just giving the money to a buy to letter. You're already on the ladder and you have a good length of time of security.

I would just relax, stop worrying and enjoy your new property. In the end it isn't just an investment, it is a home. You have to live somewhere and now you've gone through the nightmare that is buying just forget about it and focus on overpaying the mortage so if the value does go down you're fine.

MissEyre

I'd stay put, OP-house prices mean very little until you are trying to buy or sell, and it sounds like you have done exactly the right thing-bought a a price you could afford, not borrowed more to decorate and buy tons of furniture, found a fantastic fixed rate and sensibly fixed for security for five years. Stay put, make overpayments if and when you can afford to, and enjoy your home! x

m00m00

a 5 year fix at 4.5% ?

you did exactly the right thing, I'd be looking into how much over payments you could make if you have the spare cash.

if you like the house and the area, you have no problems at all with theoretical house prices. House prices are only an issue when you move or remortgage, and absolutely no one has any idea what the economy will be like 4 years down the line.

chappers

Helga14 wrote: »

Definitely stay put as long as you can afford the mortgage, you've got a great rate fixed for five years. You'll certainly probably lose money if you sell now with all the legal costs and won't you have to pay a penalty if you get out of your mortgage.

If it were me I would overpay the mortgage so in the five years you have a better LTV ratio. In the end if you are paying rent you are just giving the money to a buy to letter. You're already on the ladder and you have a good length of time of security.

I would just relax, stop worrying and enjoy your new property. In the end it isn't just an investment, it is a home. You have to live somewhere and now you've gone through the nightmare that is buying just forget about it and focus on overpaying the mortage so if the value does go down you're fine.

As that but i would put the money away somewhere else say in an ISA and reasses when it comes to remortgaging.

Gary_Connor_1955

If you sold now. You'd have to rent and only buy when you feel the market is low.

If the market takes 2 years to drop to it's bottom, you will have spent 2 years of rent money.

2 years at £500 a month rent is £12,000.

I say hang on to your property. It'll be fine in the long term.

happinessfactory

Well paid and relatively secure job?

Mortgage fixed at 4.5% for five years?

Area improving?

Wanna swap your problems for mine? :rotfl:

Stay put. You have nothing to worry about you lucky sod :A

poppy10_2

Northern_girl wrote: »

My gut feeling is that the area I live in may not crash as far as others.

Ah yes. "It's different here."

Your area will crash too. Despite this, I agree with the other posts; it doesn't make financial sense for you to sell up and rent at this stage. Stay put - the fall in house prices is just theoretical until you come to sell.

Northern_girl_2

Thanks for the comments everyone. :beer:

Think a late night and reading too many price crash threads was making me wobbly.

I do love the house and plan to be here a while so think I should probably just relax! I will be in a position to make fairly hefty overpayments (£500 a month) in about 18 months even without assuming a pay rise so hopefully that will ride out the worst of the negative equity.

poppy10 wrote: »

Ah yes. "It's different here." Your area will crash too.

I know it will crash and probably substantially. However, when I was first looking at houses my search was in 3 areas - 2 that were definitely at the peak of their prices/desirability and the area I finally bought in which had only started to become attractive. Therefore the prices weren't as inflated here and therefore, hopefully, not going to fall as far as they will in the other two areas - it simply doesn't have as far to fall!

Andy_Hamilton

I'm in the same position but due to drop off my fixed rate next Feb. I'm working as hard as I can to save £500-700 per month so I can get under 90% LTV and hoping that the house prices don't drop. I have put all my details into my spead sheet and if I pay £1000 extra every 6 months I will pay off the house in 11 years not 30-35.

My house is a home and I don't care about negative equity, I'm just scared of being on a rubbish interest rate.

One question for people in the know...
My house is a discounted new build. I can't see people selling these as they got them at 66% market value so, if no one on the estate sells how could the value drop?

itsakidsworld

You have many positive posts on here and all pointing you in the right direction.

You made a decision after apparently doing your homework and it looks like a very good, smart choice.

You are on a fixed rate, you appear settled and so forget about the property situation and what will happen for the moment. This does not affect you for a while because:

A. You have a fixed rate for five years so worry about rates in four years time.

B. You are planning on staying in the property for a long period so you SHOULD ( but not certain) be able to ride out the downturn in property.

If you were smart, as you say you did your homework, then is it to be presumed you bought the property under market value when purchased?

You will always get a difference of opinion from people who prefer to buy and people who prefer to rent. Circumstances dictate what many of us choose to do and this was your choice so be confident with this choice.

This will be my third shot at running through a recession!!! Hopefully I will still be around to make battle with the fourth one!!

Be happy with what you did, be positive and go and enjoy your life.

IAKW