grey shark Posted June 24, 2009 Share Posted June 24, 2009 Lifted from the home page ....... this is where the UK is heading , total collapse of the housing market ........ Quarter of UK homeowners face negative equity nightmareALMOST a quarter of UK homeowners could soon be in negative equity, a report has warned. One in 10 borrowers already has a home worth less than their mortgage. And analysts Fitch Ratings say the number could soon rise to 23 per cent if house prices keep falling. The report echoes one from the Bank of England which compared the numbers in negative equity today to the house price crash of the early 1990s. Fitch's analysis of a quarter of UK home loans found 270,000 borrowers with good credit histories are now financially "under water". And 23 per cent will be in negative equity if prices fall by a further 14 per cent, to give a total decline of 30 per cent from their 2007 peak. There were huge regional differences, driven by how far prices fell across the UK. The East Midlands is the worst affected, with 15 per cent of borrowers in negative equity. Scotland has the lowest proportion of borrowers in this position, at less than four per cent. Those in negative equity in Northern Ireland face by far the biggest shortfall - £23,056 on average. In Scotland, the figure is £4255. http://www.dailyrecord.co.uk/news/business...86908-21467073/ Genuinely feel sorry for the young families and FTBers who got sucked into the housing bubble , many of whom will be financially f/ed for years ....... Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 24, 2009 Share Posted June 24, 2009 Lifted from the home page ....... this is where the UK is heading , total collapse of the housing market ........http://www.dailyrecord.co.uk/news/business...86908-21467073/ Genuinely feel sorry for the young families and FTBers who got sucked into the housing bubble , many of whom will be financially f/ed for years ....... Well, the state and establishment has a lot to answer for, but I cannot genuinely feel sorry for people who take on debt to gamble. That applies for Visa cash withdrawals at the local casino, just as it does to house flippers. Quote Link to comment Share on other sites More sharing options...
Lord D'arcy Pew Posted June 24, 2009 Share Posted June 24, 2009 'Fool me once, shame on you; fool me twice, shame on me' The late 80's housing crash was once, this crash is twice. Quote Link to comment Share on other sites More sharing options...
Tim Miller Posted June 24, 2009 Share Posted June 24, 2009 Lifted from the home page ....... this is where the UK is heading , total collapse of the housing market ........http://www.dailyrecord.co.uk/news/business...86908-21467073/ Genuinely feel sorry for the young families and FTBers who got sucked into the housing bubble , many of whom will be financially f/ed for years ....... I feel sorry for Hamish Mcwaffle, having bought at the height of 2007! By the way, why did he buy at the very, very top? Has he ever said? It's just that he tells us all that we are wrong and he is right, ............funny that! Still never mind hey! Quote Link to comment Share on other sites More sharing options...
Laura Posted June 24, 2009 Share Posted June 24, 2009 By the way, why did he buy at the very, very top? Has he ever said? Do keep up TM! - It's different in Scotland....two of my friends there are still insisting. ALMOST a quarter of UK homeowners could soon be in negative equity, a report has warned.One in 10 borrowers already has a home worth less than their mortgage. And analysts Fitch Ratings say the number could soon rise to 23 per cent if house prices keep falling. Jesus, how many more times?? - There is no such animal as a 'homeowner' with a mortgage!!!!!!! & besides, how many of this lot mewed I wonder?? Quote Link to comment Share on other sites More sharing options...
HAMISH_MCTAVISH Posted June 24, 2009 Share Posted June 24, 2009 Do keep up TM! - It's different in Scotland....two of my friends there are still insisting. According to the article, it really is different in Scotland. There were huge regional differences, driven by how far prices fell across the UK.The East Midlands is the worst affected, with 15 per cent of borrowers in negative equity. Scotland has the lowest proportion of borrowers in this position, at less than four per cent. Those in negative equity in Northern Ireland face by far the biggest shortfall - £23,056 on average. In Scotland, the figure is £4255. According to the Registers of Scotland actual sold price data, Aberdeen, (where I bought), is yet to drop back to Jan 07 prices (when I bought). So whilst it's not great that prices have softened somewhat, the house is still worth more than I paid for it, (and currently rising) and at least I haven't wasted £30K in rent in the meantime. Quote Link to comment Share on other sites More sharing options...
HAMISH_MCTAVISH Posted June 24, 2009 Share Posted June 24, 2009 I feel sorry for Hamish Mcwaffle, having bought at the height of 2007! By the way, why did he buy at the very, very top? Has he ever said? It's just that he tells us all that we are wrong and he is right, ............funny that! Still never mind hey! See above post. According to the RoS data, I am right..... Quote Link to comment Share on other sites More sharing options...
'Bart' Posted June 24, 2009 Share Posted June 24, 2009 at least I haven't wasted £30K in rent in the meantime. 30k of rent in 18 months? That must be some pad you can get for £1666 a month north of the border. Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 24, 2009 Share Posted June 24, 2009 Although I have him blocked, and I right in guessing in that McSpamish is steering the thread into a debate about his timely house purchase at the peak of the market? Actually, he had a distant Dutch relative, Henrick Van Spammish who also make a fateful decision in the latter half of 1637 to invest in a handful of Semper Augustus bulbs. Enlightened ones can deduce the outcome... Quote Link to comment Share on other sites More sharing options...
Minesapint Posted June 24, 2009 Share Posted June 24, 2009 And the effect of this is larger properties which would traditionally be the next step up the ladder will fall in value as the market for them drys up. All the better for you STR guys! Quote Link to comment Share on other sites More sharing options...
Laura Posted June 24, 2009 Share Posted June 24, 2009 According to the RoS data, I am right..... There there Hamish, we know you are. You don't have to keep telling everyone because they all believe you, OK? My dear boy you could have queues at the door within the hour if you decided to instruct an agent. That is all you need to know. I used to have a cat called Hamish. He was such a sweetie Quote Link to comment Share on other sites More sharing options...
HAMISH_MCTAVISH Posted June 24, 2009 Share Posted June 24, 2009 30k of rent in 18 months? That must be some pad you can get for £1666 a month north of the border. January 07 to June 09...... Are you sure that's 18 months?????? Rent for a similar house on the same street would be between £1000 and £1150 per month. Aberdeen rents..... (and purchase prices) Decent 1 bed = 500-550 (85K-120K) Decent 2 bed = 750-800 (135K - 170K) Decent 3 bed = 900-1200 (170K-220K) With those prices, why would anyone rent??????? Decent meaning nice place in good area, but not the absolute best or most expensive. You can obviously spend much more if you want to in rent or purchase, but that'll get you a nice place. You can also pay less, but it's going to be in a low income area, or a cr@ppier property if you do. Quote Link to comment Share on other sites More sharing options...
hedgefunded Posted June 24, 2009 Share Posted June 24, 2009 Jesus, how many more times?? - There is no such animal as a 'homeowner' with a mortgage!!!!!!! Yes there is. You own your home and have a loan secured against the property. Quote Link to comment Share on other sites More sharing options...
grizzly bear Posted June 24, 2009 Share Posted June 24, 2009 According to the article, it really is different in Scotland. According to the Registers of Scotland actual sold price data, Aberdeen, (where I bought), is yet to drop back to Jan 07 prices (when I bought). So whilst it's not great that prices have softened somewhat, the house is still worth more than I paid for it, (and currently rising) and at least I haven't wasted £30K in rent in the meantime. my parents just sold house in nice suburb of glasgow. house was on the matket since September 08 and the price they got was at least 20% down compared to what their neighbours got in mid 2007. Quote Link to comment Share on other sites More sharing options...
Sybil13 Posted June 24, 2009 Share Posted June 24, 2009 The Negative Equity Threat to the UK Housing Market Those with an interest in the future for UK house prices would do well to read yesterday’s Fitch Ratings' special report on negative equity among prime borrowers. The report, Underwater - Exposure to Negative Equity in UK Prime Residential Mortgage-Backed Securities (RMBS), paints a very different picture to that currently being spun by estate agents and mortgage brokers, and suggests much more pain is on the way for the UK housing market. Fitch focuses its attention on the leading 12 ‘master RMBS trusts’ - those securitised off-balance sheet vehicles which allowed the banks and building societies to increase their mortgage lending exponentially at the height of the housing boom. These include Granite, the controversial offshore trust used by Northern Rock to sell its range of high loan to value mortgages, and Aire Valley, owned by Bradford & Bingley. Overall these 12 trusts represent around 2.7 million loans worth some £263 billion. Crucially, Fitch focuses its attention on the ‘prime’ borrowers within these trusts, rather than the subprime borrowers that have previously attracted most critical attention. Fitch’s surprising and rather disturbing finding is that around 10% of prime borrowers – representing around 15% of loans by value – are now in negative equity. This in turn will rise to 23% of prime borrowers - or 32% of loans by value – if house prices fall by 30% peak-to-trough, as Fitch expects. A 40% fall in house prices, meanwhile, would see 52% of loans by value enter negative equity. .............. .................there is a significant swathe of people who are not yet technically in negative equity, but whose current loan to value is so high that they would be unable to refinance at the same rate. Many of these have so far been saved from disaster by low interest rates, but their fundamental problem remains unresolved. As the FT points out this morning, all these people stuck in their homes are creating a ‘glut of hidden property’, which in turn is likely to depress house prices further. Even a short term rise in prices, Fitch argues, is likely to make things worse in the longer term, by encouraging trapped sellers to put their homes in the market, which in turn will push prices down again. It sounds like a vicious circle with no way out, for the immediate future at least. Quote Link to comment Share on other sites More sharing options...
A.steve Posted June 24, 2009 Share Posted June 24, 2009 With those prices, why would anyone rent??????? Because, as rental prices fall, those who rent are not stuck with a depreciating asset. Quote Link to comment Share on other sites More sharing options...
scuuzeme Posted June 24, 2009 Share Posted June 24, 2009 Although I have him blocked, and I right in guessing in that McSpamish is steering the thread into a debate about his timely house purchase at the peak of the market? Yeah, Yeah. Another in which he crows about how well he personally has done and what a good decision it was for him to have taken a lifetime svr way back then, proceeds to extrapolate that to the entire UK housing market, then goes na na na na na to the "stupid bears" who will rot for eternity in a bedsit if they are lucky, but hopefully not one in his street because they are scum and that would affect his house price. Again and again. Add finitum et ad tedium. Quote Link to comment Share on other sites More sharing options...
jammo Posted June 24, 2009 Share Posted June 24, 2009 Well at least they can be thankful Inside Track have gone bust, so they don't at least have to pay them any more thousands for their invaluable advice on the matter. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted June 24, 2009 Share Posted June 24, 2009 Well, the state and establishment has a lot to answer for, but I cannot genuinely feel sorry for people who take on debt to gamble. That applies for Visa cash withdrawals at the local casino, just as it does to house flippers. Can you feel sorry for people who took on debt without realising they were gambling? Not everyone who bought a house in 2004-2007 thought they were on the road to riches: many (myself included) thought we were buying places for ourselves and our families to live in. When I bought in January 2007 I thought price rises would tail off over the next few years - I didn't think the increases would carry on because people were clearly struggling to afford them. But nor did I consider the possibility that prices would fall 50% and put me into negative equity, which they might. And not a single friend or family member (most who'd lived previous crashes) said a word. By the time I found HPC.co.uk in May 07 it was too late. So yes, I feel sorry for those who bought a house for their children to live in and had it blow up in their faces. Those who just intended to flip them, or build a BTL empire is another matter. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted June 24, 2009 Share Posted June 24, 2009 ALMOST a quarter of UK homeowners could soon be in negative equity, a report has warned.One in 10 borrowers already has a home worth less than their mortgage. And analysts Fitch Ratings say the number could soon rise to 23 per cent if house prices keep falling. Sorry, that's gibberish. One in ten borrowers is plausible. Could soon rise to 23% is plausible. But the logical disconnect between "borrowers" and "UK homeowners" is such a glaring bogosity as to discredit the author. You'll need a more credible source and argument than that. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted June 24, 2009 Share Posted June 24, 2009 Not everyone who bought a house in 2004-2007 thought they were on the road to riches: many (myself included) thought we were buying places for ourselves and our families to live in. You were missold that oversized mortgage! Looks to me like an altogether bigger misselling scandal than any of those that've been dealt with in the past. Today's strongly negative real interest rates are your compensation for misselling. Quote Link to comment Share on other sites More sharing options...
ʎqɐqɹǝʞɐɥs Posted June 24, 2009 Share Posted June 24, 2009 Lifted from the home page ....... this is where the UK is heading , total collapse of the housing market ........http://www.dailyrecord.co.uk/news/business...86908-21467073/ Genuinely feel sorry for the young families and FTBers who got sucked into the housing bubble , many of whom will be financially f/ed for years ....... WHY??? They only helped to inflate and prolong the idiocy. Gullible greedy muppets deserve everything they get. Buy now pay later, oh and they WILL pay. Quote Link to comment Share on other sites More sharing options...
ʎqɐqɹǝʞɐɥs Posted June 24, 2009 Share Posted June 24, 2009 30k of rent in 18 months? That must be some pad you can get for £1666 a month north of the border. Yup must be esp as mine is only £265pm in the immediate west end of glasgow city. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted June 24, 2009 Share Posted June 24, 2009 WHY??? They only helped to inflate and prolong the idiocy. Gullible greedy muppets deserve everything they get. Buy now pay later, oh and they WILL pay. But not everyone was greedy, and being gullible does not seem to me like a heinous crime. I agree with you that anyone who has bought a house - me included - needs to pay for it fair and square, but to blame ordinary folk as aiders to the bubble seems to me a bit like blaming the Titanic disaster on the men that shovelled coal into the engines, instead of focussing on the top brass who cancelled the lifeboats and ignored the iceberg warnings. Sure if they'd stopped shovelling the boat would have stopped and not hit the iceberg, but isn't it Captain Brown's job to monitor for icebergs and act accordingly? Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 25, 2009 Share Posted June 25, 2009 But not everyone was greedy, and being gullible does not seem to me like a heinous crime.I agree with you that anyone who has bought a house - me included - needs to pay for it fair and square, but to blame ordinary folk as aiders to the bubble seems to me a bit like blaming the Titanic disaster on the men that shovelled coal into the engines, instead of focussing on the top brass who cancelled the lifeboats and ignored the iceberg warnings. Sure if they'd stopped shovelling the boat would have stopped and not hit the iceberg, but isn't it Captain Brown's job to monitor for icebergs and act accordingly? only if he thinks it is - who did you vote for at the last GE? Quote Link to comment Share on other sites More sharing options...
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