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Negative Equity Rears It's Head


stew

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HOLA441

(Mods - I tried posting this yesterday, with no luck... I've had a quick search & I don't think it appeared, but if this is a repost, please delete)

I was speaking to a colleague today... a totally innocent conversation, but it is the first time I have heard anyone admit that they were in negative equity.

A bit of background...

She is a hard working person, very rounded and says it like it is, around 30ish yrs old. She bought a flat about 12-18 months ago (I forget the timing, but it was when property was at the peak, when there was no sign of it abating) on her own. Before buying I carefully mentioned that it may not be the right time to buy. I say carefully, as I wasn't sure how far down the buying route she had gone, and didn't wish to become the 'negative' person amongst all the others who were congratulating her. (you know the drill!)

Anyway, she went ahead, and from what I could tell, stretched herself financially.

So, today...

...there was talk of moving in with their other half. I asked whether they would get a place together to which the response was..

"Well, I will move in with him, but my flat is in negative equity"

I was genuinely knocked back. I guess this is going start affecting a lot of people in similar circumstances. I do feel sorry for her, this would be a dire situation to be in. I guess she got sucked into the whole 'property frenzy' and got on the ladder before 'it was too late'.

I'm glad I discovered this forum, otherwise I would probably be in exactly the same position.

Edited: Spelling!

Edited by stew
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(Mods - I tried posting this yesterday, with no luck... I've had a quick search & I don't think it appeared, but if this is a repost, please delete)

I was speaking to a colleague today... a totally innocent conversation, but it is the first time I have heard anyone admit that they were in negative equity.

A bit of background...

She is a hard working person, very rounded and says it like it is, around 30ish yrs old. She bought a flat about 12-18 months ago (I forget the timing, but it was when property was at the peak, when there was no sign of it abating) on her own. Before buying I carefully mentioned that it may not be the right time to buy. I say carefully, as I wasn't sure how far down the buying route she had gone, and didn't wish to become the 'negative' person amongst all the others who were congratulating her. (you know the drill!)

Anyway, she went ahead, and from what I could tell, stretched herself financially.

So, today...

...there was talk of moving in with their other half. I asked whether they would get a place together to which the response was..

"Well, I will move in with him, but my flat is in negative equity"

I was genuinely knocked back. I guess this is going start affecting a lot of people in similar circumstances. I do feel sorry for her, this would be a dire situation to be in. I guess she got sucked into the whole 'property frenzy' and got on the ladder before 'it was too late'.

I'm glad I discovered this forum, otherwise I would probably be in exactly the same position.

Edited: Spelling!

Well you can't do more than help.

The fact mortgage approvals are even over about 30K is a shocker, when the whole market is on the edge of a cliff. As things tighten up no doubt they will fall further?!

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What does "negative equity" mean? Never heard of it. :unsure:

Neither have many first time buyers but they will know about it soon enough.

Buying a house for the first time now would be like standing at the top of a hill in a thunder storm with a copper suit on and shouting, "All gods are idiots"

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( OFF TOPIC )

Not wanting to hijack this thread but ... MGS, damn fine school. Not that I'm biased or anthing like that ;)

Hi David

Tried to send you a PM regarding MGS but your messaging is switched off

Regards

M21er

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Sorry, I forgot to mention location.. it's in Cambridge. I don't know exactly where, but definitely IN the town.

In Cambridge? You can literally take your pick as to any flat in any location in the city and it'll be in negative equity now.

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