Half of England owned by less than 1 per cent of population
Discussion
V8RX7 said:
sugerbear said:
V8RX7 said:
98elise said:
How do you sell or move when your house is worth 1/4 of the mortgage?
As long as you are moving to a comparable or better house I don't see it matters - the risk is the same / reducedWhen you sell your home the mortgage company normally has the right accelerate the loan (ie ask for it to be paid off in full).
The alternative is that it becomes an unsecured loan and interest rates will be through the roof.
People would just chuck the keys into the mortgage company and walk away. I've lived through a period where that was quite common!
98elise said:
They lend you money secured against the value of the property. If the property is no longer worth anything like the value of the home then it's no longer secured.
When you sell your home the mortgage company normally has the right accelerate the loan (ie ask for it to be paid off in full).
The alternative is that it becomes an unsecured loan and interest rates will be through the roof.
People would just chuck the keys into the mortgage company and walk away. I've lived through a period where that was quite common!
If YOU lend someone £100k on an asset that turns out to be worth £50k do you write off 50k or transfer the loan to the new appreciating asset they want to buy worth £60k ?When you sell your home the mortgage company normally has the right accelerate the loan (ie ask for it to be paid off in full).
The alternative is that it becomes an unsecured loan and interest rates will be through the roof.
People would just chuck the keys into the mortgage company and walk away. I've lived through a period where that was quite common!
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