Thousands facing negative equity

Snooze

mr.broderick wrote: »

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:

You're off your rocker. That article you're referring to that quoted house price rises had more holes in it than a cheese-grater and you know this as well as the next person. You're just !!!!-stirring to try and provoke a fresh bunch of graphs and arguments from brit and !!!!!!? :rolleyes:

If you're so sure then put your money where your mouth is and take up the bet that was offered to you in the other thread. The reality is that you know house prices aren't increasing at all hence why you won't do it. :rolleyes:

Pathetic - no balls.

Rob

baileysbattlebus

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.

That's assuming they do try or need to remortgage, if they move to the SVR and they can afford it they won't have a problem, in my experience the SVR is not always the ogre people seem to think it is. And people should allow some slack in what they can afford to pay. People have a 25(?) year mortgage not a 2 year mortgage, so at the end of their deal they still have a mortgage.
They may not be able to move lenders or move onto another fixed rate deal.


My daughter and partner bought just over 2 years ago on a 2 year fixed rate deal with the Nationwide, when they got the letter in April telling the fixed rate was coming to an end there were several options put forward by the Nationwide.

1. New fixed rate deal for 5 years (fees)
2. New fixed rate deal for 2 years (no fees)
3. New fixed rate 2 year interest only (no fees)
4. Do nothing and automatically move on to the SVR

They chose the new 2 year fixed rate offer, there was no valuation done (or if there was it was free and a drive by), they paid £190k in March 06 as FTB's for the house and were a bit concerned the value could have dropped so much that they wouldn't be able to remortgage on the new 2 year deal. When everything was done the Nationwide had put a value on the house of £220k.

This was all done last month and new payments started on 1st June.

If at the end of the new 2 year term they have fallen in to negative equity, which according to most posters on here they will have done (anything more than 21% and they will be), they will have to go on to SVR.

I would be interested to how others in the same position are fairing when their fixed rate deals are ending.

m00m00

I quoted in another thread that the way fixed rate deals are going, SVR isn't as bad as it seems.

but it's still going to be a big shock for people who fixed at sub 5.5% and are stretched at that.

mr.broderick

Snooze wrote: »

You're off your rocker. That article you're referring to that quoted house price rises had more holes in it than a cheese-grater and you know this as well as the next person. You're just !!!!-stirring to try and provoke a fresh bunch of graphs and arguments from brit and !!!!!!? :rolleyes:

If you're so sure then put your money where your mouth is and take up the bet that was offered to you in the other thread. The reality is that you know house prices aren't increasing at all hence why you won't do it. :rolleyes:

Pathetic - no balls.

Rob

Balls = Plentiful
Brains = Limited

mr.broderick

Snooze wrote: »

You're off your rocker. That article you're referring to that quoted house price rises had more holes in it than a cheese-grater and you know this as well as the next person. You're just !!!!-stirring to try and provoke a fresh bunch of graphs and arguments from brit and !!!!!!? :rolleyes:

If you're so sure then put your money where your mouth is and take up the bet that was offered to you in the other thread. The reality is that you know house prices aren't increasing at all hence why you won't do it. :rolleyes:

Pathetic - no balls.

Rob

Ps Snooze you are now currently top of my stalking league, it used to be the evidence needed to prove popularity, i'll buy into that

Snooze

mr.broderick wrote: »

Ps Snooze you are now currently top of my stalking league, it used to be the evidence needed to prove popularity, i'll buy into that

:huh:

You're off your rocker.

Rob

mr.broderick

Snooze wrote: »

:huh:

You're off your rocker.

Rob

I love that expression, you enjoying the euros rob?

Dan:_4

m00m00 wrote: »

I quoted in another thread that the way fixed rate deals are going, SVR isn't as bad as it seems.

but it's still going to be a big shock for people who fixed at sub 5.5% and are stretched at that.

The fees they are charging totaly makes these fixed rate deals very unattractive. I willl be going onto the cheaper SVR option if things haven't improved by Oct 09.

Anyone who has fixed without being able to afford the SVR deserve what they get.

musemad

Well I ask ,did anyone out there think this credit boom was going to last forever!
The average house is now worth over 11 times my yearly salary.
For me to get a house I would have to work 24 hours a day 6 days a week and cut back totally on every little thing that makes life bearable.:mad:
Apart from anything else my employer does not allow these sorts of hours and if i ever went for a job and told them i was already working 50 hours a week , do you think anyone would employ me for these hours.
It is greed and selfishness that have got GB Ltd into such trouble.:mad:
It's a pity that it will only be the ordinary British public that will suffer in the end with the banks getting off scot free and the very rich syphoning off cash into ofshore funds etc as a tax dodge