Monday, Oct 08, 2007
Slow realisation of things we've known for years
MyFinances.co.uk: House price fall could 'imprison' first-time buyers
A dip in house prices could see buyers with 100% mortgages unable to move up the housing ladder. This is because the estimated one in 20 first-time buyers who have this kind of mortgage could end up in negative equity - when the value of the loan is higher than the property itself. This would mean in order to sell their home a first-time buyer would have to pay back the mortgage lender the difference in value between the property and the loan, effectively imprisoning them until their property was worth more than their mortgage.
Posted by disillusioned @ 11:20 AM (480 views) Add Comment
4 Comments
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1. bidin'matime said...
I think we shall see more of the 'bleedin obvious' posted as words of wisdom in the coming months...
2. speculatorone said...
Welcome to what I and many others went through in the early 90's.....
3. enuii said...
Just imagine being stuck in a shoebox 1 bed FTB flat in new build hell with a £2000 plus service charge per year as well as negative equity.
Quite depressing.
4. sirgoogle said...
I was in this position from 1989 to 1998ish - The first 5 or so years were not a very nice period of my life.