We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Mortgage rates rise for second time in days
Comments
-
But why would negative equity affect them? They didn't sell. And in those days they didn't remortgage! As far as I am aware none of them had any problems repaying their mortgages as they had high earnings. (my dad was the accountant for half of them so I had a pretty good idea when someone we knew was in trouble as they were seeing our dad a lot).
They may not have even realised their house price went down, and it never affected them. They now have a nice little million pound pension fund, and are moving out of the south east to buy a cheaper house now their kids have moved out.
Well, lucky them but that doesn't mean that the typical person has nothing to worry about with negative equity.
* unable to move (unless the new house is much cheaper and your mortgage provider is amenable).
* unable to trade up.
* unable to sell to cash in.
* Lose house and end up owing the bank thousands if your income drops and you can't make the payments.
That's what most anyone buying now without a suitable deposit faces in the next couple of years and what a lot of people who bought on 100% mortgages in the last couple of years will be facing too.--
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 -
PasturesNew wrote: »When I bought in 2000 I put down a 27% deposit and was only allowed to borrow 2.5x my earnings.
Them were the days, responsible lending and borrowing.0 -
They weren't 'laughing' for about a decade as that's how long it took on average for prices to return to the same levels. I don't imagine that years of negative equity and struggling to meet high repayments for an overblown loan were much fun in the meantime. :rolleyes:
I certainly wouldn't wish that on anyone which is why I've been blowing the trumpet for not buying at the present time, for some time now.
Nope, I was one of those not laughing....we bought in the last crash at what we thought was the low point of the market (prices had already been falling for nigh on 2 years by then) only for interest rates to stay high and ended up with negative equity to the tune of almost 50% in the house. We certainly felt it because we needed to move to a bigger house and in the end we lost our house (due to other circumstances) finally in 1994.
Our old house only got back to the price we purchased it for in 1990, in 2002 (in 2000 it was still 5k cheaper!) ... I would hate to be one of those who bought it at the last price it sold for though, think they may find negative equity pretty quick as it was a one bedroom starter rabbit warren.We made it! All three boys have graduated, it's been hard work but it shows there is a possibility of a chance of normal (ish) life after a diagnosis (or two) of ASD. It's not been the easiest route but I am so glad I ignored everything and everyone and did my own therapies with them.
Eldests' EDS diagnosis 4.5.10, mine 13.1.11 eekk - now having fun and games as a wheelchair user.0 -
People who want to buy a house should have at least 10% deposit now. Anyone serious about buying a house should also be actively adding to that deposit. So if house prices start dropping not only will the deposit % be rising due to added savings but also because the price of a house is lower. I am not sure that deposits will be that much of an issue, so I think that it's crazy to suggest that house prices crashing is not good for FTB's. Even if FTB's did struggle to be able to get a mortgage, with a bit of patience, the banks will start getting more lenient again and they will be able to buy in the end.0
-
Well, lucky them but that doesn't mean that the typical person has nothing to worry about with negative equity.
* unable to move (unless the new house is much cheaper and your mortgage provider is amenable).
* unable to trade up.
* unable to sell to cash in.
* Lose house and end up owing the bank thousands if your income drops and you can't make the payments.
That's what most anyone buying now without a suitable deposit faces in the next couple of years and what a lot of people who bought on 100% mortgages in the last couple of years will be facing too.
erm they didn't need to trade up, they were in million pound houses.0 -
Precisely. Only someone who DIDN'T know what was coming would not have bought 10 years ago. If he had, and had sold last year, Zammo would have a hell of a lot more than 40% deposit right now.
As it happens I did buy 10 years ago, right in the trough.. :beer:
You'll be pleased to hear that I have no mortgage on that place anymore as I paid it off a few years ago, but it does provide me with a nice steady income from the rent, and security for a loan should I need even more cash to shore up my already considerable deposit.
Bring on the crash I say. I'm in a very good position to profit from it.
:beer::T:beer:0 -
erm they didn't need to trade up, they were in million pound houses.
Yes - you'll note that I started my reply with:
Well, lucky them but that doesn't mean that the typical person has nothing to worry about with negative equity.
:rolleyes:
Still, good for them.--
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 -
Good evening !!!!!!? how have you been today,will come back and talk abit later just catching up with latest Doctor Who.Being out there is much better than realityYes - you'll note that I started my reply with:
Well, lucky them but that doesn't mean that the typical person has nothing to worry about with negative equity.
:rolleyes:
Still, good for them.0 -
This is one of your best posts, as you seem to understand that while Governments sit on their hands 'Boom and Bust' is the cycle we're in. For all of your doom and gloom posts now I'm sure that once you have actually bought your home and BTL you'll be cheering on HPI like there is no tomorrow. :rolleyes:
I certainly won't be cheering HPI after I buy because I understand that it doesn't benefit me until it comes time to sell and trade down. I don't anticipating selling up to trade down for a few decades yet.
Any typical home owner who has been getting out the pom-poms to cheer on crazy house price inflation must be a bit crazy themselves. I guess it shows the media has done a pretty good job of brainwashing them. I wonder could people be gullible enough to let themselves be convinced that rising food and oil prices are a good thing too? :rotfl:--
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 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards