Owning your own home

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leggy_blonde in reply to @andyfallsoff

I presume @Soul is talking about cash buyers.

For live-in homeowners, if there is a short to medium term fall, then as long as negative equity doesn't apply, it does mean that moving up the ladder is easier as the absolute gap between properties also falls. Every cloud and all that.

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andyfallsoff in reply to @leggy_blonde

Yeah I just don't see much reason to suspect investors have more of a capital gain that can be soaked up than owner occupiers - probably less as they may have interest only mortgages, professional investors will have gearing targets, and investment horizons are probably shorter than how long it is between home moves.

I take your point on no negative equity but it's not just that - it's anything that pushes your LTV to a bad level that makes price drops a problem. You don't have to be underwater to find going from 75% ltv to 95% sucks

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leggy_blonde in reply to @andyfallsoff

Agree with your investor points.

In terms of LTV meaning mortgage rate increases, I guess this is why banks stress test based on higher interest rates. Perhaps all the "I pay £1500 PM rent so why won't a bank give me a £1000 PM mortgage" people of the last few years will start to understand why.

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