Quote:
Originally Posted by marinabrian
It makes not one iota of difference Ian, it only matters if you plan to move house, and plan to port the mortgage along with the move.
It is unfortunate if you happen then to be trapped in a house you no longer wish to live in, but the perception of the properties worth to yourself doesn't alter because of negative equity.
I believe it to be a price worth paying so our children and their children have a reasonable chance at making a home for themselves.
Brian  |
There is one difference it makes, whether you can afford to sell or not. Near to the beginning of a mortgage term negative equity often means that selling the house will leave a shortfall in paying off the mortgage, a shortfall that often can't be met. Leaving the 'owner' unable to move until the equity balance is restored. Either by prices going back up or by paying off a larger percentage of the mortgage. (Of course there's always the option of leaving the market and renting, or becoming homeless).