Thousands facing negative equity

IveSeenTheLight

Vested Interests I presume.
But aren't we all?

hostman

IveSeenTheLight wrote: »

Vested Interests I presume.
But aren't we all?

To a point, but some VI's are worst than others

IveSeenTheLight

hostman wrote: »

To a point, but some VI's are worst than others

I can agree to a point as well.
But surely one vetsted interest on one side of the see saw is always going to think the VI on the opposite side of the see saw is worse

It's the beuty of the see saw that you can see both sides of the debate and make an educated decision for yourself.

Ian_Griffiths_Halifax

Home owners wanting to stay put are wanting their house to rise, FTBs and people wanting to move up are wanting the values to drop. There needs to be a bit of give and take on both sides, but the main issue is the lenders who need to start lending again.

WTF?_2

Ian_Griffiths_Halifax wrote: »

Home owners wanting to stay put are wanting their house to rise, FTBs and people wanting to move up are wanting the values to drop. There needs to be a bit of give and take on both sides, but the main issue is the lenders who need to start lending again.

Prices started dropping as of September last year, four to five months before credit from the banks dried up.

Has it occurred to you why that credit for mortgages dried up at that point in time? It's not so much that someone suddenly turned off their money taps as the credit crunch had been going for a good year by that stage and up until that point they still had cash for mortgages. Clue: The banks aren't totally stupid and they know that the housing market is a busted flush.

If you want to find where the money went which previously would have been loaned as mortgages, look no further than the energy or commodities markets. It's working out pretty well for the banks, if not the general public. :rolleyes:

Dan:_4

!!!!!!? wrote: »

Prices started dropping as of September last year, four to five months before credit from the banks dried up.

Has it occurred to you why that credit for mortgages dried up at that point in time? It's not so much that someone suddenly turned off their money taps as the credit crunch had been going for a good year by that stage and up until that point they still had cash for mortgages. Clue: The banks aren't totally stupid and they know that the housing market is a busted flush.

If you want to find where the money went which previously would have been loaned as mortgages, look no further than the energy or commodities markets. It's working out pretty well for the banks, if not the general public. :rolleyes:

What a load of rubbish. It took those few months for the lack of credit to filter through to the banking system.

WTF?_2

Dan: wrote: »

What a load of rubbish. It took those few months for the lack of credit to filter through to the banking system.

The credit crunch had been ongoing for more than just a few months before Feb/Mar this year when the banks suddenly returned to sensible lending policies. You know, things like requiring a deposit and rates of interest that reflected the comeback of reality to the markets (cost of borrowing money and risk).

You will find that anyone with a 10% deposit, a good credit history and a job should have no problem finding a mortgage for 3.5x their salary. There's no shortage of money to lend for sensible property purchases.

The financial sector still has large amounts of money to throw around courtesy of huge 'emergency liquidity measures'. However, they're choosing to put that money somewhere it can make them a profit (pumping up bubbles in energy and food) instead of throwing it like confetti at the fast sinking housing market. There's also the matter of all the excess cash pumped into the system at ever increasing rates since 2001.

mr.broderick

!!!!!!? wrote: »

Prices started dropping as of September last year, four to five months before credit from the banks dried up.

Has it occurred to you why that credit for mortgages dried up at that point in time? It's not so much that someone suddenly turned off their money taps as the credit crunch had been going for a good year by that stage and up until that point they still had cash for mortgages. Clue: The banks aren't totally stupid and they know that the housing market is a busted flush.

If you want to find where the money went which previously would have been loaned as mortgages, look no further than the energy or commodities markets. It's working out pretty well for the banks, if not the general public. :rolleyes:

Looks like we've reached the bottom !!!!!!, there is a thread running along side this one with actual proof of that, quite different from your constant threads with links to guesswork, we are in for an interesting evening...:o

m00m00

there's a category error in this discussion

it's not just negative equity that's an issue for many. Even still remaining in positive equity in the 91-99% range will cause a great deal of problems for people on fixed term mortgages who need to remortgage in the current climate.

mr.broderick

m00m00 wrote: »

there's a category error in this discussion

it's not just negative equity that's an issue for many. Even still remaining in positive equity in the 91-99% range will cause a great deal of problems for people on fixed term mortgages who need to remortgage in the current climate.

Unfortunately with prices rises again as they now are equity will head in the positive direction again and won't be an issue. Must admit i thought they would have fallen more than 3% and was hoping they would, just goes to show...:cool: