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Should I Throw In The Towel?

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Hi all, been prowling these boards for a while now, I work for the new UK "superbank" although it doesnt feel that super at the moment :unsure: I have a average size repayment mortgage, just £106k, but in negative equity. I didnt over stretch and the missus and I can more than cover the repayments, but we bought 1 year before the peak...bad times

So I'm thinking....the chances of us keeping our jobs in the recession are fairly slim, and I dont quite see the point of trying to keep a house when the value is falling like a stone and the mortgage debt is not falling by a similar amount, add to that the inevitability of a job loss in the next 12 months (and Item Club predicting 3.4m unemployed going into 2011) and I'm thinking we cut our losses and take the redundancy pay to bum around australia or south africa for a two years, then maybe come back and start again.

We're putting the house on the market next week, although I dont think it'll sell, the market around here has dried up, there are no buyers!!!....I'd rather just rip the plaster off than wait to be made redundant, then wait to default, then wait to be repossessed

who's coming with me?

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  • if you intend to come back then don't run away... te feckers will likely be after you...
  • your part of a brave new public sector in browns britain so your job is quite safe if you can keep it through the merger.
  • maybe you could just go to some riots and stuff.. bound to be loads going on the next few years
  • if your going to jump ship then why not run up a lot of debt beforhand and don't come back... look at the mistake of the guy who fed to pannama in the cannoe
  • talking of which ... got any life/fire insurance....

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I work for the new UK "superbank" although it doesnt feel that super at the moment :unsure:

Really, do you mean the new government holding company that owns all the prefs or just boring old Lloyds-tsb-halfifax-bank-of-scotland-etc-etc ?

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Really, do you mean the new government holding company that owns all the prefs or just boring old Lloyds-tsb-halfifax-bank-of-scotland-etc-etc ?

LLOSBOS!

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106k? what are you talking about, pay the f*cker off. Keep your jobs as long as you can and pay the thing down, then hit the beaches of the world while giving someone a nice cheap rent for year.

Never, ever, ever, ever, ever, thought I'd agree with dances with sheeple.

It's a traumatic time for me. :ph34r:

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If you keep your job, stick with it.

Having an income will be important, and having a job keeps your mind from racing, thinking about all the other s**t going on.

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I can only offer you some advice based on friends who've weathered this storm in the past - but I cannot say it applies to me as I have never felt it appropriate - given my lifestyle - to own a property.

I've known people in the 70s, 80s and 90s recessions - although I think this shows some serious signs of being well above those - but in all those cases - they all kept their properties even when it was no longer sensible to do so in the SHORT-TERM.

They had to do some weird stuff to keep their houses - I do know of a friend who had another friend - who went into business as a high-class prostitute - to pay for her house - and she was very clever about doing a business plan (for herself of course) and ran it as a business (if such a thing could be done).

She was single - had previously had a job in a bank as a high flyer - and been made redundant - like now - unemployed investment bankers of failed insitutions are not readily employable - and she too had done the champagne thing at the time thinking it would never end so had savings but not much.

So she changed - and this is what she did - with clear criteria - when I can pay my mortgage by getting a job - I'll stop or - if not - when I get my house paid off - I'll stop.

She paid her house off sooner than she got a job - but she did get another job - but by that time had already paid off her house.

Was it a small house - no - it was a 4 bed Victorian in a nice area.

Happy end - went on to get married and have kids end of.

She probably sold it at the right time and got the money for it.

But this is short-term in your life.

I know for all experiencing this for the first time - it feels like the world has changed and we'll always be like this - but we won't - every time we've gone down - we've gone up.

I also have friends paying 18% mortgages - who took on three jobs to pay their mortgages who were ridiculed by friends at the time - including me - for doing so.

Well they still have their houses - and despite the problems then - have sold their original house - and moved up - sure it's worth less now - but it's worth more than if they'd worked it out over years.

And for them it was a life style decision - they were happy where they were and friends, family and local links were more important.

If you can keep affording to pay - and are not at risk of losing your job any time soon - then why would you do this?

Are you in an area where you will be made redundant - and are you prepared to do anything in the short-term to take any job just to get money coming in?

Do you like your place - do you want to keep it and will it be appropriate for you both in the next 10 years?

Then don't buy into all the hype.

This has all happened before.

And in fact - before - the govt used to let banks go bust - and sure there was fall out and some lost out - because there was at that time no more than 10k written by the govt.

It is different this time true - but wait until you are made redundant - sure - if you both get made redundant.

But are you suggesting that we predict that this is the top of the crash and so you should sell now?

We can't - in fact most of us do believe this is the beginning.

But at some stage - it will stop.

If you are happy to stay where you are for 10 years then don't look short-term.

In the 70s - my Mum and Dad were in this situation - and they had debts that look normal by today's standards but were truly scarey to them at that time - but they held out.

The did sell 15 years later - as the house had out-grown it's use - and they got a reasonable price - that covered every penny they'd paid for the mortgage and interest + some.

But sadly, they hadn't predicted that the land with the house - 2 acres - in the prime area of town - once sold to the next person would be then sold on 10 years later for millions.

Timing is everything - but selling now when you don't have seems a daft thing to do.

Plus someone here is right - they will persue you for the negative equity - despite what also people thought they could do in the 80s - you can't now just hand in the keys and forget about it!!!!!

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Hi all, been prowling these boards for a while now, I work for the new UK "superbank" although it doesnt feel that super at the moment :unsure: I have a average size repayment mortgage, just £106k, but in negative equity. I didnt over stretch and the missus and I can more than cover the repayments, but we bought 1 year before the peak...bad times

So I'm thinking....the chances of us keeping our jobs in the recession are fairly slim, and I dont quite see the point of trying to keep a house when the value is falling like a stone and the mortgage debt is not falling by a similar amount, add to that the inevitability of a job loss in the next 12 months (and Item Club predicting 3.4m unemployed going into 2011) and I'm thinking we cut our losses and take the redundancy pay to bum around australia or south africa for a two years, then maybe come back and start again.

We're putting the house on the market next week, although I dont think it'll sell, the market around here has dried up, there are no buyers!!!....I'd rather just rip the plaster off than wait to be made redundant, then wait to default, then wait to be repossessed

who's coming with me?

Nothing wrong with dreaming

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Hi all, been prowling these boards for a while now, I work for the new UK "superbank" although it doesnt feel that super at the moment :unsure: I have a average size repayment mortgage, just £106k, but in negative equity. I didnt over stretch and the missus and I can more than cover the repayments, but we bought 1 year before the peak...bad times

So I'm thinking....the chances of us keeping our jobs in the recession are fairly slim, and I dont quite see the point of trying to keep a house when the value is falling like a stone and the mortgage debt is not falling by a similar amount, add to that the inevitability of a job loss in the next 12 months (and Item Club predicting 3.4m unemployed going into 2011) and I'm thinking we cut our losses and take the redundancy pay to bum around australia or south africa for a two years, then maybe come back and start again.

We're putting the house on the market next week, although I dont think it'll sell, the market around here has dried up, there are no buyers!!!....I'd rather just rip the plaster off than wait to be made redundant, then wait to default, then wait to be repossessed

who's coming with me?

You don't exactly sound like a lost cause repo case to me ?

What you do is entirely down to your own circumstances, i've given up on this idea of a right and wrong time to buy/sell, although tbh buying at the top of the biggest property bubble the UK has known isn't exactly optimal.

As others have said, if you can more than cover the repayments pay that capital down, and ffs be grateful your a dual income household.....think about all those single income households with 120k+ mortgages on median salaries. Especially the low income single income families who alan milburn and co. wanted to empower through property ownership back when things were rosy.... Dual incomes, i assume you've got atleast some savings, and the mortgage protection schemes mean i don't think your one of the few at high risk of defaulting unless that's what your really want. :blink:

This to me is why the idea of a quick recovery is so blatantly misleading, irrespective of any liquidity that's perceived to be sloshing around from QE and low interest rates.....the mantra of sit it out is accompanied by stories such as yourself with people worried about NE and being lumbered with what they have with little room to manouvere other than to pay down the capital [not always possible] and sit it out [3 years ? 5 years ? 7 year ?], and what you have to put on hold as a result of sitting it out waiting for the big, red recovery bus. The worry and the degree of certainty required for making decisions about buying a home from the turmoil of the last 18 months [note : home and not an investment] will nicely counterbalance any fear of getting left behind once the media start calling recovery. IF it's a choice of being free from an albertross of debt or missing the boat at the start of another potential bubble, i think more and more people would rather miss the boat and just stay on dry land. Even if that dry land is slumming it with mum and dad.

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Hi all, been prowling these boards for a while now, I work for the new UK "superbank" although it doesnt feel that super at the moment :unsure: I have a average size repayment mortgage, just £106k, but in negative equity. I didnt over stretch and the missus and I can more than cover the repayments, but we bought 1 year before the peak...bad times

So I'm thinking....the chances of us keeping our jobs in the recession are fairly slim, and I dont quite see the point of trying to keep a house when the value is falling like a stone and the mortgage debt is not falling by a similar amount, add to that the inevitability of a job loss in the next 12 months (and Item Club predicting 3.4m unemployed going into 2011) and I'm thinking we cut our losses and take the redundancy pay to bum around australia or south africa for a two years, then maybe come back and start again.

We're putting the house on the market next week, although I dont think it'll sell, the market around here has dried up, there are no buyers!!!....I'd rather just rip the plaster off than wait to be made redundant, then wait to default, then wait to be repossessed

who's coming with me?

well have a nice time & good luck !!! goodbye...

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We're putting the house on the market next week, although I dont think it'll sell, the market around here has dried up, there are no buyers!!!

It will sell if you drop the price to that which buyers are willing and able to pay.

And there are buyers, some of whom even have cash.

All that remains is to set the price.

good luck!

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I will probably get burnt at the HPC stake for saying this but...

is there any reason you could think of to get the deeds of the house, the mortgage and any unsecured debt changed into just one name? Separation seems to be poison of choice for this purpose.

Then you could run away to play for a couple of years and if you decided to come back at least one of you has a clean card to start again.

Working in finance you know that with a dog pile on your credit files even getting jobs in your experience bracket will be tough.

Or you could play the banks at their own game if you are in this frame of mind and BR yourselves. You could then stay in your house or give it up with no long term debt.

Then go play, nobody will be chasing you & if you come back in a few years you get to start again.

TBH it sounds like you are giving up very early as you both still have jobs and £106000 is not a huge mortgage to pay off. If you get paid off Gordon will pay it for you.

Have fun.

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is there any reason you could think of to get the deeds of the house, the mortgage and any unsecured debt changed into just one name? Separation seems to be poison of choice for this purpose.

This is the basis of a sensible strategy. Move liabilities onto one person, savings to the other i.e.

1. Get into positive equity asap, enough to be able to remortgage

2. Remortgage with only one name on the deeds (the one most likely to be made redundant) - I dont know if a single income is enough in your case.

3. The deed-owners gets all the liabilities (utilities, credit cards etc.)

4. The non-deed-owners gets all the new savings, save as much as you can

5. If the deed-owners gets unemployed, stop paying the mortgage, bills etc yet stay in the house as long as you can

6. The non-deed-owner keeps all the income and is not liable for the debts.

I plan on buying a house for cash in the next year or so. The house and savings will go in the wifes name since my job is much riskier. Any loans and bills go in my name. I don't work in an industry where they care whether you have gone bankrupt or not, this may be more difficult for you.

I've seen this approach been used by people with assets in the £millions. The woman has the house in her name, and the guy does all the risky investments, CEO type jobs that you never know how long its going to last. If it works out fine, otherwise they still keep the house.

VMR.

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morning gents

thanks for the advice, the missus and I did think about waiting till I get the chop, then renting it out while we go down south for a year or two - although we couldnt remortgage so we would jsut stay on the SVR and not tell mortgage company :ph34r:

Problem is we would need to contribute some cash to cover the cost of mortgage. Even if we only had to top up the rent with just £100 a month, over a period of two years (thats assuming rates stay low for that period), the house price wouldn't be anywhere near the amount we bought at; and we would probably have only paid off about £2000 of the debt.

So the mortgage would be £104k, the house would now be worth £90k (if we are lucky, we bought at £112k)

In addition, we would have all the hassle of finding someone to rent (who could lose there job too)...it jsut seems liek we would be delaying the inevitable

I mean if this recession is gonna last 5/6/7 years thats along time to struggle

I might be sounding a bit defeatest, but it's just a bunch of bricks and tiles

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I might be sounding a bit defeatest, but it's just a bunch of bricks and tiles

So gradually move any savings into cash or with a trusted relative. If you then lose your jobs, go bankrupt and travel. (not entirely legal of course)

I wouldnt struggle to pay for a £100K debt on a house that may end up being worth say £60K. You should consider that you may never be able to borrow again. (unlikely but a possibility to consider).

VMR.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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