to feel seething resentment towards those who profited from the house price bubble and hot anger at the Governments who allowed it to happen?

[TartyMcFarty]

You'll have to forgive my naivety here - I'm ranting about something I don't really understand.

DH and I are stuck. In 2006 we bought a (modest) property on a 100% mortgage. Foolish in hindsight, I know, but based on the advice of our IFA, the unshakeable faith of our families and society that property ownership was the way to go, and the increasing pressure at the time to get on the ladder or miss out, that was the decision we made. We then found that the lender, bastard bastard Northern Rock were unwilling to remortgage based on our lack of equity, despite us having overpaid by several thousand pounds. We couldn't shift the place, and with the agreement of a different IFA, remortgaged against the equity in my DM's property (love her!). It gets more complicated than that, but that's all that's needed here. Now we still can't sell it , our tax credits have suddenly disappeared, my pension contribution has increased (DH doesn't even have a pension) and the tracker rate is slowly increasing. We're on interest only, and as I'm part time since the having DD, with another DC on the way, there's not much of a cushion.

What's really angered me over the last couple of days is the dawning realisation of how people just a few years older than us have profited from the massive increase in property 'values'. I'm still in touch with our ex-neighbour. She bought seven years earlier than us, sold at £120k profit after 10 years (this is not London!), her partner was in a similar situation so they have ended up comfortably in a property of twice the size, renovated to a really lovely standard. Obviously my resentment isn't directed at them personally - they're good people, have profited from a stupid market and good luck to them - but it's just an illustration.

How can we possibly hope to survive in a property market that boomed by more than 3.5x in this instance alone? We can't even afford to maintain our own home to a good standard. Pay isn't moving at all, and we're currently looking at less than .75 of a pension between us. I can't even bear to think about how we'll support our DCs through HE, and the risk to my DM's home if interest rates shoot up.

I just need a rant. Those of us stupid enough to be sucked in at high LTV rates towards the peak of the market are fucked all ways, whereas people just 5 years older than us are untouchable. I know I've only given one example for which I know the exact figures, but there are others I can think of in the same lucky situation. There just doesn't seem to be any point in trying when you compare our situation with those who profited so enormously in the 00s.

[perceptionreality]

Life's not fair - you're right. But at least you have a home which you actually own. I doubt I will ever be able to buy my own house - I've always rented. If I were 10 years older I would probably have my own house.

[OddBoots]

It must be very frustrating but most people who bought a home just bought it to live in, very few have actually made a real profit unless they make themselves homeless.

I do agree though that house prices are stupid though.

[Kayano]

Don't get your anger at normal folk who invested at a good time?

I bought my house on 5 year fixed rate in Jan 2007

Northern rock shit ht the fan in Sept 2007

I actually worked at Northern rock opening post for the mortgage department

But I don't feel any resentment whatsoever to people my age who bought at a better time or hit lucky with the market. It's totally illogical. There is always a cycle of good times and bad times and need to be prepared for any eventuality.

[mayorquimby]

meh they invested well and made their profit.

[Kayano]

sings age ain't nothing but a number

[TartyMcFarty]

I'm angry at those in power who allowed it to happen. I can't help feeling a certain amount of resentment towards the lucky ones. Human nature I suppose.

perception, I absolutely appreciate what you are saying. We own our property on paper only though. We are in negative equity and I wish we'd never been sucked in.

[TheNightIsDarkAndFullOfTerrors]

YANBU. They pulled up the ladder after them etc...

My parents think that my housing association rent of £100 p.w is high

They were so used to things coming very easily to them and cheap credit that when they retired they took out a dodgy equity release loan not understanding compound interest and all the bloody equity they once gained is already gone. No deposit for me, not that I expect to ever get a mortgage or any inheritance but still... it goes to show.

[ILovePonyo]

YANBU. We bought when house prices were sky high, if we'd waited 6 months I reckon we would have got our house a lot cheaper. My mate bought hers on the next road for half the price about 8 years earlier

We are wanting to move but its depressing thinking about how much we'll sell for compared to what we bought at.

Anyway, moan over, I can sympathise. Though, I agree with perception, I do feel grateful that we have at least managed to get a mortgage and own our home (ignore that fact we'll be paying it off forever and a day...)

[TartyMcFarty]

Oddboots, my gnawing fear is that we're not going to manage for long enough to have somewhere to live.

Kayano, until pay starts increasing relative to the price of property, can we ever expect to see a cycle like this again? I can't believe it will happen.

[LaurieFairyCake]

Yanbu

In general it is completely undeserved money - no one has done anything to deserve this free money.

It is one of the largest and most divisive inequalities, and we have utterly screwed over the young.

And has concentrated the assets in those over 45.

[TartyMcFarty]

I mentioned age because it just seems like another kick in the face that we're talking five years. It's not like these are baby boomers - I'm 34!

[WorraLiberty]

YANBU

I bought in 1995 and I do realise how lucky that makes me.

Mind you, the house needs everything doing to it right now so I'm actually jealous of my neighbours who rent council homes, because they have new kitchens, windows, doors and roofs.

The grass is always greener isn't it?

[smoggii]

Don't think about those that have more than you think about those who have less.

But it is frustrating thatthe govt didn't regulate or heavily tax those buying multiple properties which would have prevented most of the problems.

I too missed out, 3 years at uni and my first few years of work whilst saving were when the market went through the roof, by the time i had a measly deposit i spent a fortune on a small property in need of renovation only to watch the market crash shortly after.

Everyone I know that started work straight from school, bought homes soon after and have profited from the boom. Lucky them.

But, I have a job, I have a home which I have made my own and I love, others not so lucky as me and I feel for them and count my blessings rather than allow envy to take over.

[OddBoots]

I'm 34 too, I just bought young, something today's youngsters won't be able to do.

[TartyMcFarty]

I'm surprised I haven't had a flaming for admitting to the 100% mortgage TBH.

I am very thankful for what we do have, I honestly am. It's just that I'm starting to wonder what's the point in working so hard for so little. I feel very vulnerable

[perceptionreality]

I think your frustration is fair enough especially if you've now lost your tax credits. Negative equity is an horrible position to be in. I know my parents are frustrated that they decided not to buy a house about 20 years ago which would now be worth much more than the one they did decide on!

[Kayano]

How big a 100% mortgage did you get compared to your earnings?

We bought not very long after you and our mortgage payments are good now our fixed rate has ended. Much less than equivalent rent would be

[plus3]

I hear you - I don't resent the people around me who have fabulous homes, but I do resent the situation we are in. we were going to buy our 1st home for 150k in 2001 - we got stuck in a chain that we naively trusted in. The house prices started to rocket, the chain revalued their properties & bumped the rise in prices onto us. it made our property in the space of 3 months now worth 190k, which they said they would accept 180k for

We walked away, thinking we had been taken advantage of, but also because 150k was the maximum we could afford.

Fast forward 10yrs, 2 children later & we are still renting, 280-350k is the asking price for similar properties, and the deposit is moving further and further away from us.

DH & I earn good money, but I just don't think we will ever be able to buy our own home.

[perceptionreality]

Also, you are quite right that in the UK a lot of people feel (or at least our parents generation do) that you should own your home no matter what. I don't think that's the case any more.

[MadameChinLegs]

Four years ago, I bought mine on a 95% 5year fixed deal for a 35 year term. The house flat we bought was at it's highest value ever, and dropped over the last few years. I do feel sad when I think about it, but I feel better when I realise that even if I had waited for prices to maybe drop, I would not have been able to get the mortgage deal I have, and would have needed at best a 20% deposit, which I wouldn't have had.

I am grateful for the fact that I don't need to move. I do, however, know that I will not be able to expand my family until we do.

[mrspnut]

We are the sort of people you'd hate although we are in our mid 30's.
We sold our house at the peak in 2007 and bought our next one in 2009 - but there was no conscious effort involved on our part just pure chance.
We are really lucky though and karma will bight us n the arse when we sell this house.

[TartyMcFarty]

Personally I wouldn't consider putting off starting a family until the situation is resolved, because we had fertility issues and as it turns out, the situation won't improve in the medium-term anyway. I find it very sad to think that the economy is dictating people's family lives. We are going to stop at two, rather than three though!

[TartyMcFarty]

Hate hasn't got anything to do with how I feel, mrspnut (I know your comment was tongue-in-cheek though). I do wish that the lucky ones 'got' it though - i.e. we live in an increasingly grotty house out of necessity, not choice.

[ohbugrit]

YANBU - I'm in almost precisely the same situation. Our house is tatty but we can barely afford basic maintenance. We could really do with more room but we can't possibly move. We'd struggle to sell this place and we live hand to mouth each month just making sure everything's paid so can't save anything to cover moving costs. And we both work bloody hard and always have, in good jobs, so we're doing everything 'right' and the recompense is a bloody struggle every single day. I realise that we're very lucky to own our home but I feel extremely vulnerable. It won't take much for us to go tits up.

So yes, I can sympathise with your resentment. Although it's not the fault of those who profited - we'd all have done the same - it's the fault of the high heid yins.