Thousands facing negative equity

WTF?_2

Ian_Griffiths_Halifax wrote: »

The report in the first post is serious scaremongering from a journalist who should be gagged.

For starters, not all of the 23000 who took out 100% mortgages will be in negative equity. Some areas are still rising or are stagnent.

Also, 23000 mortgages is a tiny percentage of the total number of mortgages taken out last year.

Finally, how many of those borrowers would be looking to move house or remortgage within 12 months? The 23000 were up to the end of March 2008! There will be a tiny number of those 23000 who will be wanting to move within 4 years let alone 2 months (end of March to date).

Newspapers, Property Programmes, TV News and the likes, all sell their space on sensationalism. You would be far less likely to see a TV Headline News of "Dog has 12 pups" than "STEAMROLLER Flattens Dog With 12 Pups".

There's more denial there than in Egypt :rotfl:

fc123

!!!!!!? wrote: »

Worryingly, yes....

Have you seen the state society is in? Community spirit is all but history and there are plenty out there who already don't give a flying fig about the law when it comes to their own self interest. Imagine what would happen if a real slump hit and food and energy became hard to get. Being able to buy a house cheap would be the least of your problems if things break down, which they well could.

Please don't go down the Squatnow route too. Stick to the links (I rely on them for my daily dose of info) and comment.
There is STILL plenty of community spirit etc etc bla de bla...it just depends on the life you lead as to whether you actually see any of it.
In that I mean commuting , office, home much of the week....dodge the drunks at the weekend, think that the whole population are all like the people you see around Asda.

Don't lose hope !!!!!!.

fc123

Oh..... I am really getting good at the glass half full mindset now. I have been practising.

There are many, many more who are nowhere near having any negative equity at all even if prices fall 30%.

jamescredmond

Ian_Griffiths_Halifax wrote: »

The report in the first post is serious scaremongering from a journalist who should be gagged.

For starters, not all of the 23000 who took out 100% mortgages will be in negative equity. Some areas are still rising or are stagnent.

Also, 23000 mortgages is a tiny percentage of the total number of mortgages taken out last year.

Finally, how many of those borrowers would be looking to move house or remortgage within 12 months? The 23000 were up to the end of March 2008! There will be a tiny number of those 23000 who will be wanting to move within 4 years let alone 2 months (end of March to date).

Newspapers, Property Programmes, TV News and the likes, all sell their space on sensationalism. You would be far less likely to see a
TV Headline News of "Dog has 12 pups" than "STEAMROLLER Flattens Dog With 12 Pups".

I couldn't agree more.

23000?

perhaps this figure is a precursor of even worse news, but there's no clear evidence yet. only febrile speculation.

a sense of proportion, please, for God's sake.

or I'll book a table for me and pasturesnew in st.helier....

Ron2256

The 23000 people facing negative equity was the headline in the news on the BBC.

They've interviewed a young lad who bought a house with a 105% mortgage and asked him how he felt about negative equity.
He didn't seems bothered really and in a way , I can understand why.
He didn't have to save money to buy the house("buying the house was easy"), and if the worst happen he can just make himself bankrupt and walk away from it all. He won't be the one losing money as he never had to pay a penny of his own.
I am amazed with the whole property pyramid and by the attitude of people towards debt. Unbelievable.

dopester

Yeah Ian, newspapers all sell with a bit of sensationalism... some editors know what makes good copy...

but were you complaining when newspapers were reporting house prices rising at £300 a day?

hostman

Anyone that bought in the last two years with 10% or less equity is in danger of negative equity. Already, despite what VI's try to do to dress up figures, prices are DOWN about 7% on average across the UK, that's in less than a year ...

You could extend this to anyone who bought in the last 4 years with 20% or less equity if the worst predictions are realised.

You need to look at those who have MEW'd. Pushing themselves deeper into debt to have that extension, that nice car, that nice holiday etc, all these types will be in the brown stuff with prices dropping by 20-30%.

Ian_Griffiths_Halifax

dopester wrote: »

Yeah Ian, newspapers all sell with a bit of sensationalism... some editors know what makes good copy...

but were you complaining when newspapers were reporting house prices rising at £300 a day?

Actually I was, as I was saying at the time that if it continues at ridiculous levels people will start complaining when they level out or drop.

Those who already had a property and saw the house rocket by 200% in the last 7/8 years won't be complaining about 3-4% price correction. There are always winners and losers. All the FTBs have to do is chip away at the mortgage and stay put until the market recovers.

Ian_Griffiths_Halifax

hostman wrote: »

despite what VI's try to do to dress up figures

What is a VI?

ixwood

Vested interest.