House prices 10.5% cheaper

[gingerjedi]

Surely your house will sell at a "loss", thus negating the reduction in the house you buy?

Uh 10% of £400k is £40k, 10% of £250k is £25k... c'mon it’s not that hard to work out shirley??

The higher up the ladder the bigger the discounts so you’re probably looking at 15% or maybe 20% off, as I said

[tim123]

I'll tell you No. 1 what's not to like.

You buy a house at the peak (say £500K) on a 100% mortgage.

"Who cares, if it drops to say £300K" you say.

Your mortgage is coming to an end or is charging 2% more than the best deals. You really have to get a new mortgage.

You seek to remortgage and the new mortgage company asks for a valuation. It comes out at £300K in current market.

The new mortgage is 75% loan to value max.

This means you owe £500K and the most a lender will lend you is £225K. You need to find £275K cash to pay the lender.

HTH

That'll teach people not to be rate tarts in the future won't it.

Did these people not learn "there no such thing as a free lunch"

tim