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Negative Equity Could Hit 1.7 Million


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HOLA441
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HOLA442
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HOLA443
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HOLA444
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HOLA445
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HOLA446

Therein lies the rub of why so many feckers refuse to budge on their asking price.

It's not that they "won't" necessarily - just that they can't. hance why it's called a trap, and why they will be on Rightmove for double what they can actually get for it, stuck, never selling.

it's a position that would be so depressing to be in - if it were me I would be sorely tempted to just file for bankruptcy.

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HOLA447

What we need is more 100%+ mortgages... to get this market moving again. It`s all down to the terrible blight that is mortgage rationing, won`t someone please think of the poor home loaners!

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HOLA448
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HOLA4411
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HOLA4413

I see no problem with negative equity...all that is to be done is to repay the negative debt, then be in positive easy...debt is there to be taken, then to be repaid...sometimes it take a bit longer than anticipated.

It is quite a different matter when someone can't repay their debt due to unforeseen financial problems, negative equity or not...they will have to sell and rent like the rest of the best have to....any negative is still an outstanding loan to pay. ;)

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HOLA4414

I don't see any issue with neg equity either. After all most of us are in negative equity on our cars and most things we buy. Why should houses be any different? I'm really tired of hearing, that the housing market should be rigged into a perpetual money making machine for "home owners." If there were less advantages to buying there would be calls for changes to tenancy laws, more secure tenancies etc

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HOLA4415

It's not that they "won't" necessarily - just that they can't. hance why it's called a trap, and why they will be on Rightmove for double what they can actually get for it, stuck, never selling.

it's a position that would be so depressing to be in - if it were me I would be sorely tempted to just file for bankruptcy.

I saw this happening a lot in the last house price crash. It was terrible for couples who were estranged and yet who had to continue living together because their home had become their prison. But, hey-ho, renting is dead money, right? ;)
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HOLA4416

It's a pity there isn't an easy breakdown of LTV ratios outstanding.

Here's some data on my hard drive.

Major UK bank exposure to high LTVs (src: BoE Financial Stability Report):

UKBankMortgageExposure0611.gif

Mortgages outstanding at end 2010 (src: CML):

MortgagesOutstanding2010.gif

Breakdown of Lloyds LTVs at 31 Dec (src: Lloyds published accounts):

LLoydsLTVs2010.gif

So at end 2010, 13.2% of Lloyds £341bn mortgage book (£45bn) was >100% LTV, and 26.8% (£91.4bn) was 90%+ LTV.

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HOLA4417

Here's some data on my hard drive.

Major UK bank exposure to high LTVs (src: BoE Financial Stability Report):

UKBankMortgageExposure0611.gif

Mortgages outstanding at end 2010 (src: CML):

MortgagesOutstanding2010.gif

Breakdown of Lloyds LTVs at 31 Dec (src: Lloyds published accounts):

LLoydsLTVs2010.gif

So at end 2010, 13.2% of Lloyds £341bn mortgage book (£45bn) was >100% LTV, and 26.8% (£91.4bn) was 90%+ LTV.

The purchase of HBOS was a great buy was it not?

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