If you have bought a house for way over its true market value in the last few years..

[hans kraay fan club]

Arguably, negative equity only affects you if you want or have to move, so not everyone who is in the shit as a private home owner is going to be "f***ed" as Simster puts it. But those who had multiple houses as investments are going to be far more hit.

by that reckoning, Buy-to-letters would not be affected either then, so long as their prpoerties continue to be let at rates which cover the loan repayments.

 

[Bozza]

In a word, nothing. Even if the company went bust, it's assets (including the money you owe) would be bought by another bank so you will not be affected. The losers are the shareholders.

Let's hope Northern Rock was not another of Beach Hut's "easy money" investments...

 

[Cian]

by that reckoning, Buy-to-letters would not be affected either then, so long as their prpoerties continue to be let at rates which cover the loan repayments.

Based on previous cycles here, rent rates fall off while interest rates rise - the rent stops covering the loan repayments.

 

[cjd]

Based on previous cycles here, rent rates fall off while interest rates rise - the rent stops covering the loan repayments.

most buy to lets are done on fixed mortgages, so present conditions are unlikely to affect for some time yet, and by then the markets will probably have stabilised.

 

[Dave the OAP]

when we first bought our house 1982/3 I seem to recall Interest rates were above 15%

One of these days in a some dark depressed moment, i am going to work out just how much money we have paid to the halifax/Midland/HSBC over the 27 years we have had a mortgage.

if it was 500 per month x 12 months x 27 years that totalls £162,000 for a 25k mortgage.

capitalism eh!

 

[London Calling]

we got to pay something like £750,000 and now our mortgage is above a £1000 a month...............eeekkkkkkkkkk

 

[Simster]

Arguably, negative equity only affects you if you want or have to move, so not everyone who is in the shit as a private home owner is going to be "f***ed" as Simster puts it. But those who had multiple houses as investments are going to be far more hit.

It was tesco in disguise, not me.

 

[The Clown of Pevensey Bay]

Northern Rock is NOT going to go bust. BBC Radio has just been reprting that it's expected to suffer a reduction in profts this year -- but they'll still be around £500m.

So the people panic-withdrawing their savings are being incredibly silly.

In fact the only thing British people are more obsessed with than property prices is queuing.

 

[Uncle Spielberg]

The bloke below is a super mortgage advisor if anyone wants some advice on a new mortgage or re mortgage to make sure they have the best possible rate. He is also whole of market and has access to over 35000 rates. He has recently arranged for 2 NSC members a 2 year fixed at 5.24% and a 5 year fixed rate at 5.29% with free survey and free legals for re mortgages.

Gareth Glover
Senior Mortgage Advisor, CEMAP & FPC

PM - Uncle Spielberg.

Regards.

 

[Cian]

It was tesco in disguise, not me.

Sorry, no idea where I got that from...

 

[Yorkie]

Never?

In 1996 (I think) I bought my first property - a 3 bed Victorian terraced house in Worthing by saving for a 5% deposit myself and then paying the mortgage myself. No help sought by me from anyone and none provided.

Never was a poor choice of word(s).

During the late 70s building societies started allowing spouses income and more than 2.5 times annual salary which did ease the situation quite a bit. From then on it did become easier for first time buyers.

 

[British Bulldog]

The bloke below is a super mortgage advisor if anyone wants some advice on a new mortgage or re mortgage to make sure they have the best possible rate. He is also whole of market and has access to over 35000 rates. He has recently arranged for 2 NSC members a 2 year fixed at 5.24% and a 5 year fixed rate at 5.29% with free survey and free legals for re mortgages.

Gareth Glover
Senior Mortgage Advisor, CEMAP & FPC

PM - Uncle Spielberg.

Regards.

We're looking to put our house on the market next year so I might just tap into a bit of your knowledge US. It's nearly 20yrs since I last went through the process of buying & selling so it's fair to say i'm a bit out of touch with it all.

 

[Uncle Spielberg]

I would be happy to help.

 

[Bozza]

when we first bought our house 1982/3 I seem to recall Interest rates were above 15%

You're just making it up as you go along

Everyone knows that the base rate did not get any higher than 14.375%, where it was between 1st and 18th January 1982. By the end of 1983 rates had plunged to 9.0625%.

Reviewing the base rates of the recent past, and how often they changed (example: rates changed on the 24th, 25th, 26th and 27th August 1982), puts today's "high" rates into perspective.

 

[Beach Hut]

I thought Lamont put interest rates at 15% only overnight after the apolectic mistake the Conservatives made which was the beginning of the end for them.

I am sure it dropped down the very next morning

 

[Bozza]

I thought Lamont put interest rates at 15% only overnight after the apolectic mistake the Conservatives made which was the beginning of the end for them.

I am sure it dropped down the very next morning

Maybe but Lamont wasn't doing his thing in 82-83.

Lamont was Chancellor from November '90 until May '93. In November '90 rates were 13.875%. In May '93 they were 5.875%. There was never an upward movement during this time.

 

[Beach Hut]

Maybe but Lamont wasn't doing his thing in 82-83.

Lamont was Chancellor from November '90 until May '93. In November '90 rates were 13.875%. In May '93 they were 5.875%. There was never an upward movement during this time.

Probably before my time in mortgage terms as I think my first one was '86

 

[dougdeep]

Housing in the south east has never been affordable for first time buyers without help.

Of course it has, 20 years ago it was no problem.

 

[dougdeep]

Let's hope Northern Rock was not another of Beach Hut's "easy money" investments...

Good time to buy.

 

[franks brother]

its not just the northern rock that's gone cap in hand to the bank of England, 4 over high street banks have taken out emergence loans in the last fortnight,