Negtive Equity and all that

[NoelWatson]

anonymous said:

[redacted]

The only way I could see this happening is if the Gunment buy the mortgage books off the banks, because who else will want to fund a book with average >100% LTV?

[MikeyT]

Do you *have* to move? If not, don't - sit tight.

[fido]

anonymous said:

[redacted]

Isn't that what Quantitative Easing is about? forcing up the price of debt and reducing yields (interest rates to the layman) Still i don't think it's prudent to treat FTB as a special case and 100% LTV is what got us into this mess in the first place. Let the banks price the risk accordingly (they might get it right this time) and if they won't lend >90% then it's for a reason.

[scotal]

fido said:

Still i don't think it's prudent to treat FTB as a special case and 100% LTV is what got us into this mess in the first place.

I don't agree with that. It is a factor, but the repackaging of debt into products neither the buyer nor the seller fully understood, "light touch" regulation which in fact meant fk all regulation and the poor funding decisions by some senior bankers would contribute a great deal more.

[Glosphil]

Jasandjules said:

weLex said:

Going by a randon propery valuation website (zoopla) it would appear that our place is now worth substantially less than when we bought it (no shock there) but its down from £150k to £122k, a large loss.

1. Who knows how prices will be in 1 year.
2. A website is not a market rate
3. If you really do need to know now, get three estate agents round to value it.

Estate agent valuations??? Don't make me laugh.

A friend of mine had his house valued by 3 estate agents at £92K, £90K & £88K.

Put it on the market at £89,950 and the estate agent said he should get £82K-85K. He was offered £75K and the estate agent recommended he should accept it! I suppose any commission is welcome when sales are low.

Many estate agents in this area are now wanting to sell houses for a fixed fee rather than a % commission.

[Si 330]

The problem is who knows were the market will fall, your better taken the offer today than having to to take an other 20% hi in a few months (if you have to sell).

[Tony*T3]

Chim Chim said:

Back in the 90's when house prices were dropping I had to sell my house due to the wife leaving. We bought just before prices dropped so the house was now worth £10k less than the mortgage amount. Because of my financial situation (wife was main earner) I couldn't afford to pay the full mortgage amount so the Halifax took a reduced amount.

We eventually found a buyer but the Halifax blocked the sale due to the offer being less than the mortgage although it was market value. At the same time the Halifax were saying that either I started paying the full mortgage or they would reposses!

We had to start legal proceedings aginst the Halifax before they backed down and allowed the sale - although by this time the buyer had got fed up and pulled out. We actually had a date for a hearing at the Old Bailey which would have been interesting!

Both myself and the wife were both jointly and individually liable for the loss on the mortgage - so my wife "vanished" and the Halifax then chased me for the £10k. In the end my Mum put up £5k on the agreement that Halifax didn't chase me for the remainder or I would pay them back at £1 a month. They chose the £5k and as far as I know the wife never paid anything.

I she still buried under the patio of that house.....?

:0

[maser_spyder]

MikeyT said:

Do you *have* to move? If not, don't - sit tight.

+1

Give it another year or two, things may be at least starting to settle, if not recover. If you 'have' to move, rent out the current place and rent where you're moving to.

Everybody is pretty much in the same boat with mortgages, we all have to just sit and be patient until the financial 'geniuses' sort out the mess they've got themselves in to.

[Chim Chim]

Tony*T3 said:

Chim Chim said:

Back in the 90's when house prices were dropping I had to sell my house due to the wife leaving. We bought just before prices dropped so the house was now worth £10k less than the mortgage amount. Because of my financial situation (wife was main earner) I couldn't afford to pay the full mortgage amount so the Halifax took a reduced amount.

We eventually found a buyer but the Halifax blocked the sale due to the offer being less than the mortgage although it was market value. At the same time the Halifax were saying that either I started paying the full mortgage or they would reposses!

We had to start legal proceedings aginst the Halifax before they backed down and allowed the sale - although by this time the buyer had got fed up and pulled out. We actually had a date for a hearing at the Old Bailey which would have been interesting!

Both myself and the wife were both jointly and individually liable for the loss on the mortgage - so my wife "vanished" and the Halifax then chased me for the £10k. In the end my Mum put up £5k on the agreement that Halifax didn't chase me for the remainder or I would pay them back at £1 a month. They chose the £5k and as far as I know the wife never paid anything.

I she still buried under the patio of that house.....?

:0

welllllll - she did actually die last year (blood clot from a broken arm) and the first thing I thought of was if I still had some insurance on her! Bee Arch. My Mum heard about it first and called me to see if I knew "Helen had died" and I said "Helen who?". I really didn't think she ment her! She's now refered to as the "dead one". Not that I'm bitter at all. Just because she left me for a DJ from Birmingham she met while on holiday on a Greek island. nah. Just wish I knew where her grave was so I could get my dancing shoes out.

[Matt p]

That's karma for you my friend!

Chim Chim said:

Tony*T3 said:

Chim Chim said:

Back in the 90's when house prices were dropping I had to sell my house due to the wife leaving. We bought just before prices dropped so the house was now worth £10k less than the mortgage amount. Because of my financial situation (wife was main earner) I couldn't afford to pay the full mortgage amount so the Halifax took a reduced amount.

We eventually found a buyer but the Halifax blocked the sale due to the offer being less than the mortgage although it was market value. At the same time the Halifax were saying that either I started paying the full mortgage or they would reposses!

We had to start legal proceedings aginst the Halifax before they backed down and allowed the sale - although by this time the buyer had got fed up and pulled out. We actually had a date for a hearing at the Old Bailey which would have been interesting!

Both myself and the wife were both jointly and individually liable for the loss on the mortgage - so my wife "vanished" and the Halifax then chased me for the £10k. In the end my Mum put up £5k on the agreement that Halifax didn't chase me for the remainder or I would pay them back at £1 a month. They chose the £5k and as far as I know the wife never paid anything.

I she still buried under the patio of that house.....?

:0

welllllll - she did actually die last year (blood clot from a broken arm) and the first thing I thought of was if I still had some insurance on her! Bee Arch. My Mum heard about it first and called me to see if I knew "Helen had died" and I said "Helen who?". I really didn't think she ment her! She's now refered to as the "dead one". Not that I'm bitter at all. Just because she left me for a DJ from Birmingham she met while on holiday on a Greek island. nah. Just wish I knew where her grave was so I could get my dancing shoes out.

[AlexKP]

anonymous said:

[redacted]

No, no! I didn't mean a return to 100% plus mortgages.... what I meant was a return to making 90-95% mortgages available at sensible rates, especially for first time buyers, probably as part of some limited term guarantee scheme etc.

[AlexKP]

anonymous said:

[redacted]

No, no! I didn't mean a return to 100% plus mortgages.... what I meant was a return to making 90-95% mortgages available at sensible rates, especially for first time buyers, probably as part of some limited term guarantee scheme etc.

[jdw1234]

Why would anyone want to lend at a high LTV in a falling market?

[armynick]

maser_spyder said:

MikeyT said:

Do you *have* to move? If not, don't - sit tight.

+1

Give it another year or two, things may be at least starting to settle, if not recover. If you 'have' to move, rent out the current place and rent where you're moving to.

Everybody is pretty much in the same boat with mortgages, we all have to just sit and be patient until the financial 'geniuses' sort out the mess they've got themselves in to.

+2

I'd sit tight if you can, unless you see a deal that would work for you without getting into more debt.

If you really have to move, rent. Is it possible for you to downsize if you rented eleswhere, trying to make your rental income less than your morgage? Would it be easy to rent your property out? With the spare cash and any other cash you cash find, start to chip away at your morgage with extra payments. Small but frequent payments can make alot of difference long term. I take it you have a repayment morgage? Remember to pay the loan, NOT the interest.

I'm no expert but I understand that the internet pricing websites aren't case specific. They don't know what condition your property is or what extras you may have. Three estate agents, even if they are wildly different will give you an average and would be the most realistic and current pricing, surely?

Good luck

[NoelWatson]

mickken said:

jdw1234 said:

Why would anyone want to lend at a high LTV in a falling market?

IMHO the Brown is making the banks lend out high LTV mortgages as part of "his" rescue plan.

This as anyone knows is stupidity, as it will not be enough to kick start the housing market. Dropping VAT to 15% achieved fk all and the interest rate fiasco will cause more harm than good in the medium to distant future too.

It will earn the UK a downgrade. Trying to artificially support a bubble is a dangerous game.

[Mr_Yogi]

Regarding Renting out and moving somewhere cheaper, I doubt the mortage company will consent to let unless you drop a whole load more equity into the property.

[scotal]

anonymous said:

[redacted]

The problem with high LTV is the new rules on funding and reserves, to lend 100k at 60% ltv is much cheaper (to the bank) than lending 100k at 95% ltv.

Thats quite apart from the higher risk of NE on a 95% loan

[zcacogp]

A quick question about the "Rent the place out, and rent somewhere else" plan ... rental income is taxed (as we all know). Could you claim the rent you pay for the place you rent to live in against the tax you'd pay on the rent you recieve? (Did that make sense?)


Oli.

[scotal]

zcacogp said:

A quick question about the "Rent the place out, and rent somewhere else" plan ... rental income is taxed (as we all know). Could you claim the rent you pay for the place you rent to live in against the tax you'd pay on the rent you recieve? (Did that make sense?)


Oli.

You can offset the rental income against the interest charged on the mortgage. (Not any capital repayments though) You cannot to my knowledge claim the rent against the rent as it were.

[selmahoos]

I can't see much problem with a loan of 100% of the price of a property which a proper and accurate valuation shows to be worth considerably more.