Whats the crisis?

lauraocal

It was a business loan.
I ceased trading on 24 december last year, profit margin wasn't enough to keep us afloat, so we sank.

Paul_N_4

lauraocal wrote: »

So if I had my house valued in april 07, for £95,000.00, just how much would it be worth today?
Have I actually started to loose any value in it yet or should I assume it to be higher, but just not with the previous growth on value?
I have a large secured loan you see and am facing getting my house repossessed due to non payment.
I only have £26k left to pay on the mortgage, so as of april last year, that left equity of £69k. The secured loan stands at £66k.
Would I be better off selling now or leaving it with the bank to sell?

In your financial position its better you get professional help and advice to see what your options are. By all means get your home valued, that's the only way you're going to find out what you can expect to get for it. Don't take advice from names on the Internet in situations as important as this. Best of luck.

boinging_2

Yep agree as per Paul N.

lauraocal

Thanks.
I have already sought advice from the national business debt line.
they told me I should get private rented home and give my house keys to my mortgage company and leave it to them to sort out.
I have not followed their advice, but I'm in a better position financially now and have begun talking to the loan company (hsbc) about options available to me.

WTF?_2

lauraocal wrote: »

It was a business loan.
I ceased trading on 24 december last year, profit margin wasn't enough to keep us afloat, so we sank.

Ouch! Bad luck. Never a good idea to take out a mortgage on your own home to fund a business, lesson learned I guess.

You need to see a real financial advisor (not just a glorified mortgage salesperson) about your situation.

However, if I were you I'd be tempted to put the house on the market and sell it if you have any equity left.

You can try to stick it out and maybe prices will recover or 'cheap money' will become available again, but I have to say that looks very unlikely at this moment in time.

Whatever happens I certainly wouldn't leave yourself to become a victim of circumstance. Take control of the situation. If you are facing the prospect of repossession it's nearly always better to sell it yourself first, if you possibly can.

lauraocal

It's funny you should mention advice from a financial advisor, in the year running up to closing down, I went to a financial advisor, he filled me with hope when I thought all was lost, the only problem I had was that everything he promised and said he could do for us was all words with no actual reality.
I ended up worse, after leaving it up to him at a critical time, than I would be now if he never came into it.
This was from a massive uk company too.

I had a remortgage all set up to pay the business loan off, with a more agreeable pay back period and rates, but he thought he could get a better deal than the one I had got (4.99%) so I never took that mortgage.
In the end he lied to me saying a bank had withdrawn their offer of a re-mortgage only to find out when I called the bank that they were waiting on a response from him and could only continue our deal at a different rate or keep the offered rate (5.39%) with the financial advisor still involved.

My business was very successful in that I had just over £600,000 per year trade but only worked at 11%.

It's all my own fault at the end of the day I know but I'm not to keen on financial advisors as a result.

johnycoldears

As someone has previously mentioned the land registry figures are lagging by some three months or more. What you are therefore looking at is 9 months of rises and 3 months of falls to produce the overall 3.5% rise you quote. The Nationwide and Halifax figures are more current and therefore over the last 12 months show 6 months of rises and 6 months of falls - leaving you house price pretty much static.
The question is what do you think the trend will be over the next 12 months?

lauraocal

I don't think the house prices will rise as fast as they did before, but I don't think it's going to crash (unless you class it of already crashing).
Things are changing when it comes to getting a mortgage, but that needed to happen anyway.
I had a re-mortgage quote off one company and they kindly put my income up in my application so I met the affordability requirements.
To many people working on commission in these lenders companies, after all whats it to them?

johnycoldears

There are two main things which have caused the rapid rises in house prices we have seen over the last ten years.

1) Easy credit which means more people can obtain a mortgage and thus demand and prices increase 2) Confidence in a rising market means more people seek the easy credit to buy a house increasing demand and therefore prices.

We now have a situation where 1) credit is constricted meaning less people can obtain a sufficiently high mortgage, reducing demand and therefore prices 2) People have no confidence in a rising market (in fact most have confidence in a falling market) reducing demand for credit and therefore prices.

Until easy credit is once again available, and people start to have confidence in the housing market, prices will continue to fall.
Even if GB's interventions manage to lubricate the credit markets it is unlikely that Banks will be as lax with their money for many years (or at least until memories fade)
I can see prices drifting lower for quite a few years yet.

LittleMissAspie

lauraocal wrote: »

I had a re-mortgage quote off one company and they kindly put my income up in my application so I met the affordability requirements.

I think that's called fraud actually. It's illegal and it is part of the problem (some would say it's the whole problem).