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Boe Says 1 In 10 Homeowners In Negative Equitiy

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The Bank used three methods to calculate negative equity, which resulted in estimates of 700,000, 1m and 1.1m, or 7pc-11pc of Britain's mortgage borrowers.

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The Bank used three methods to calculate negative equity, which resulted in estimates of 700,000, 1m and 1.1m, or 7pc-11pc of Britain's mortgage borrowers.

That's confidence boosting.

It almost sounds like the experts are guessing.

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It almost sounds like the experts are guessing.

Of course they're guessing. After all, the only way to actually find out would be to force them all to sell on the same day, which would probably result in the number in negative equity being "all of them". That said, the estate agents would love it.

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Just announced on Sky News.

Thats nothing.

I trump your 10% of homeowners with 95% of banks are in negative equity.

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http://www.telegraph.co.uk/finance/economi...ive-equity.html

Containing the negative equity problem is vital to the country's economic health, the Bank stressed. "Negative equity can have implications for monetary policy by affecting the pattern of demand and supply in the economy," it said.

Well yeah but you can't force people to take out loans, and force the banks to make 95%/100% LTV loans. Also as prices went much higher and with 19% fall in one and half years that's alot of equity gone up in smoke!

I wonder how much equity has gone.

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200,000 BTL landlords are neg equity.

Thats a worry.

clearly,this is evidence enough that the economy needs to be rescued, as BTL is a top new world order productivity model for the future.

Its lasted....what.....5 years?

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Bank of England says 1.1m homeowners in negative equity!![/b][/size]

Unfortunately for us, with interest rates so low, thats 1.1m houses that wlil not be coming onto the market to endure price discovery.

Looks like we are now waiting for 3m unemployment for the next leg down.

VMR.

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Unfortunately for us, with interest rates so low, thats 1.1m houses that wlil not be coming onto the market to endure price discovery.

Looks like we are now waiting for 3m unemployment for the next leg down.

VMR.

Are the only people that struggle with their mortgage in negative equity? If you have equity in your property you don't struggle? :ph34r:

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200,000 BTL landlords are neg equity.

Thats a worry.

clearly,this is evidence enough that the economy needs to be rescued, as BTL is a top new world order productivity model for the future.

Its lasted....what.....5 years?

& let's not forget that's only the legit ones.

I personally know plenty (I'm sure we all do) that have divorced or never married that have a couple of btl properties each, but they are down as first time buyers. They were allowed to do this by being encouraged to lie by the mortgage brokers.

just wait & see how many there really are. I reckon you could double that figure.

I know at least 10 people who have multiple btl properties (most having 2 or more), some of them only work part time on 10k, yet have property mortgaged for 200k. I kid you not.

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& let's not forget that's only the legit ones.

I personally know plenty (I'm sure we all do) that have divorced or never married that have a couple of btl properties each, but they are down as first time buyers. They were allowed to do this by being encouraged to lie by the mortgage brokers.

just wait & see how many there really are. I reckon you could double that figure.

I know at least 10 people who have multiple btl properties (most having 2 or more), some of them only work part time on 10k, yet have property mortgaged for 200k. I kid you not.

The disgusting part is that they will then be eligible for mortgage interest payment from the taxpayer as well .. so the VI gang Sibley, Val et al could be having BTLs that are being funded by the taxpayer as well .. no wonder they are so smug..

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just wait & see how many there really are. I reckon you could double that figure.

I know at least 10 people who have multiple btl properties (most having 2 or more), some of them only work part time on 10k, yet have property mortgaged for 200k. I kid you not.

As long as they keep repaying there isn't a problem. :ph34r:

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In addition, around 200,000 buy-to-let investors are also estimated to have owed more on their mortgage than their property was worth.

Some of them may also be in negative equity on their own home or on more than one investment property.

I bet the figure is at least double that , as over 1.1 million BTL mortgages were sold , the bulk of these in 2005 - 2007 ,

sold prices are now at mid 2004 levels , most BTL are flats which have taken a bigger loss than houses many were bought with interest only mortgages with little or no deposit .... then theres those poor suckers with leveraged portfolio's :lol: .

No i reckon it's more like 500,000 BTL in negative equity ....... :)

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The disgusting part is that they will then be eligible for mortgage interest payment from the taxpayer as well .. so the VI gang Sibley, Val et al could be having BTLs that are being funded by the taxpayer as well .. no wonder they are so smug..

yep. Due to the UK's GDP being built on selling houses to each other, it needs to be sustained at ALL costs. Even at the cost of the whole UK going down, which is now what's happening.

As long as they keep repaying there isn't a problem. :ph34r:

exactly. That's why the stats won't reflect what's actually happening on the street.

watching the news this morning, they showed some sandwich cafe owner with one outlet being lent £15,000 from the LDC fund to open another. he was spouting he is helping the economy by opening another branch probably employing a couple of people.

This made national news on sky & bbc ffs. Just how bad are things that they have to put this on as main news.

This wouldn't have even made the local news a couple of years ago.

people have no idea just how bad this WILL be do they ?

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1 in 10 mortgagees in NE - that's over a million properties.

Assuming a very modest £10K per property, that's £10 billion of unsecured outstanding property loans.

Take a more realistic £20K, and we are talking £20 billion

I'd love to know if the BoE has worked out this figures and, if so, told the relevant lenders what provision they ought to make, taking into consideration that house prices are set to fall further ......

It sure ain't gonna help to boost those mortgage lending figures :P

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Unfortunately for us, with interest rates so low, thats 1.1m houses that wlil not be coming onto the market to endure price discovery...

sure, but, assuming that almost all NE is on classic FTB type properties, it should mean relatively little competition for 'second tier' type properties since many people who would historically have been upsizers will have to stay put.

it should also mean an end to MEW by BTL speculators being slung back into hoovering up more FTB properties.

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Are the only people that struggle with their mortgage in negative equity? If you have equity in your property you don't struggle? :ph34r:

Sorry for the delay, should have got back to you sooner.

My point was that if you are in negative equity, it is very unlikely that you would be able to sell your property, even if you want to.

An owner with equity (struggling or not) is able to sell then either buy somewhere else, rent, move back with parents, or emmigrate. Both of these cases result in price disovery.

VMR.

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