Quote:
Originally Posted by Wicked_and_Crazy
 They will only lose it if they stop making the payments. The collapse in price doesnt stop them making the payments. Most people that move house these days have made profits on the previous houses so its only a pricing correction.
The only people that its a concern for are new buyers who default |
Default risk is higher for new buyers, especially those who are on mortgages with introductory rates. If wages stagenate and borrowing facilites are tightened then moving it to a good rate in x years time will be tougher and at that point the default risk may increase significantly. This is the biggest problem in the US, people buying 4000 ft homes because they could afford the initial repayments and being advised they could remortgage (refinance) when the introductory part was up only to find now a big lack of refinancing options.
Quote:
Originally Posted by Wicked_and_Crazy
I was 10 years younger than you are now when i got on to the property ladder. Was a hard decision (NOT), did i want the millstone or did i want to rent for life.
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Right now is the first time I have not had a mortgage (because I don't own any property, not because I am mortgage free) since i was 21. I'm kinda feeling my timing was not far from perfect.