UK Property "Tipping Point"

[Moscow Mule]

Where I live, the Land Registry House Price Index shows an annual drop of 2% to the end of August.

Linky

Ta, quite good that link !

It'll catch up with the current Halifax/Nationwide figures in 6 months time, look when it started going negative on a monthly basis and work it out. I think the Halifax/Nationwide numbers still might need another month to lose the last positive figure !?

Is it too soon for volume figures for August 08?

Richmond's index has gone up since 08/07, but the volume isn't shown (I can't believe it's zero?)

Index 183.4 186.3

Average Price (£) 434,200 441,116

Sales Volume 531 -

[Cyberman]

If the market drops values another 40%, I'll start getting nervous

I'm not looking to sell, but if price drops 40% I'll be buying a second property to let.

[expat]

Please don't take this the wrong way, but you don't own the house.

Unlike those who repay the mortgage and thereby take ownership of a slice of the house as they keep making repayments, you are only servicing the capital borrowed.

I'd always go for repayment method.

Is that true? Obviously it has a certain sense to it, but is it a legal fact?

But I too would always take repayment, because that's something I can understand.

[BrilloPad]

It does if you go bankrupt at the same time.

I thought you can still be chased for 12 years?

[IR35 Avoider]

Please don't take this the wrong way, but you don't own the house.

Unlike those who repay the mortgage and thereby take ownership a slice of the house as they keep making repayments, you are only servicing the capital borrowed.

I'd always go for repayment method.

When you buy a house with a mortgage, you aquire an asset and a liability, the house and the mortgage. The value of the two is separate and a change in the value of the one does not affect the value of the other.

Your house burning down or falling off a cliff does not affect what you owe on the mortgage.

The amount you repay if you have a repayment mortgage affects the value (the balance) of the mortgage, it has no effect on the amount of house you own.

Some people think if they have a 200K house with a 100K mortgage that means they have 100K of house. They don't. They have 200K of house and -100K of cash.

[Cyberman]

Please don't take this the wrong way, but you don't own the house.

Unlike those who repay the mortgage and thereby take ownership a slice of the house as they keep making repayments, you are only servicing the capital borrowed.

I'd always go for repayment method.

Of course you own the house. Your name is on the deeds and nobody else can claim to own your house, and the mortgagor(bank) has a charge on the property to safeguard its funding.
You will obviously not own your house if the bank forecloses due to your bad debt or other terms of the loan, because it would be sold, but that is a different issue.

[rootsnall]

I thought you can still be chased for 12 years?

No, I don't think so but I'm not an expert.

If you have your house repossessed but don't go bankrupt then the banks can come back years later and chase you for it.

[ace00]

Unlike those who repay the mortgage and thereby take ownership a slice of the house as they keep making repayments,......

Nice one. Are you going to have a party when you get the whole living room? What about if the lending bank's boss needs somewhere to kip, will he chuck you out of the bedroom 'cause it's his ?

[Cyberman]

Nice one. Are you going to have a party when you get the whole living room? What about if the lending bank's boss needs somewhere to kip, will he chuck you out of the bedroom 'cause it's his ?

[expat]

Of course you own the house. Your name is on the deeds and nobody else can claim to own your house, and the mortgagor(bank) has a charge on the property to safeguard its funding.
You will obviously not own your house if the bank forecloses due to your bad debt or other terms of the loan, because it would be sold, but that is a different issue.

OK, then the same applies to someone on an interest-only mortgage; in contradistinction to the OP's claim.