London Property Finder

Several newspapers have published figures from a report by Standard & Poor, apparently stating that 60,000 people a month are falling into negative equity and 2 million people face repossession.  But on Friday, the Council of Mortgage Lenders (CML) who control 98% of UK mortgage lending, issued a clarification note that their projections for repossessions remains 45,000 this year (0.38% of all mortgages) and that 98% of homeowners continue to pay their mortgages in full and on time.  Even we thought repossessions would rise to nearer 60,000 this year, so although extremely distressing for anyone directly affected, the number of repossessions this year is unlikely to have much impact on the property market as a whole, being as it is, such a small proportion of the market.

As for negative equity, we’ve said it before and we’ll say it again - it’s all in the buying.  But for those who find themselves owing more than their home is worth, remember that if you don’t need to sell it’s not a disaster.  Make yourself feel better by working out how much it would have cost you to rent your home and deduct that from any perceived loss.  Alteratively think about how you could recoup some of the loss, perhaps by adding value through extending your home.  You don’t actually have to carry out the work: merely getting planning permission in place might help your house price. 

Lastly, you bought your home because you liked it.  Sit back and enjoy it and wait for the market to improve (and next time instruct this London property Finder to help you buy)!

Technorati Tags: council of mortgage lenders, House Prices, London House Prices, London Property Finder, mortgage arears, Negative Equity, Repossessions

Tags: council of mortgage lenders, House Prices, London House Prices, London Property Finder, mortgage arears, Negative Equity, Repossessions