House prices 10.5% cheaper

[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

[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

[Clippy]

most UK are almost bankrupt anyway (legacy of flawed Blairites policies), Barclays, RBS (Sir Goodwin left), B&B (who could not raise a penny from stockholders), so mortgage applications are dropping like stones.

Time to dust down the canoe methinks.

[sappatz]

UK banks

most UK are almost bankrupt anyway (legacy of flawed Blairites policies), Barclays, RBS (Sir Goodwin left), B&B (who could not raise a penny from stockholders), so mortgage applications are dropping like stones.

[Bob Dalek]

But I'm looking to trade up so...

Just what the market needs.

People weren't swinging from the chandeliers’ when prices were going up by 3-4% every month yet they're gloomy about a drop of 10% over 12??? Get some perspective people ffs.

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

[Hiram King Of Tyre]

Crikey 10% discount, it must be a cracking time to buy.....

[gingerjedi]

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.

You are fooked and cannot refinance.

If you sell up you lose £200K of real money.


HTH

But I'm looking to trade up so...

Just what the market needs.

People weren't swinging from the chandeliers’ when prices were going up by 3-4% every month yet they're gloomy about a drop of 10% over 12??? Get some perspective people ffs.

[chris79]

You guys have mortgages...?????? I thought that was only something permies did or back in the 70s.

[hugebrain]

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.

You are fooked and cannot refinance.

If you sell up you lose £200K of real money.


HTH

Just take £275K out of your bank account and pay the lender.

What's the problem?

[GCR99]

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.

You are fooked and cannot refinance.

If you sell up you lose £200K of real money.


HTH

there are alot of children masquerading as adults in this grown up world of ours. Most of them probably watched "Location, Location.." with that fat useless idiot Kirsty PoshBird, who kept telling everyone "Dont worry just borrow more and buy a bigger house, prices will never come down, and knock that wall down while you're at it"
Now they have massive loans on rapidly decreasing equity, and are, as you succinctly put it "fooked"
I myself, however, foresaw all this years ago and will welcome either plummeting or rising prices.

[DimPrawn]

Seriously... what’s not to like???

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.

You are fooked and cannot refinance.

If you sell up you lose £200K of real money.


HTH

[gingerjedi]

Seriously... what’s not to like???

Unless you're selling up to move abroad I can't see how it can be a bad thing... for most people anyway.