If Anyone bought a house 2007 has it gained any value?

[Flowersblue]

If Anyone bought a house 2007 has it gained any value?

Our hasn’t and also barely anything off the mortgage from 14 years ago basically may has well just rented.

If you’re moving within the same area, then the good news is surely that other properties will also have remained static, so you aren’t having to find a vastly increased sum to move on? You’ve also had the benefit of living in the property and the security and peace of mind that renters don’t have, of knowing you can never be forced to move with just a few weeks’ notice. That’s value that can’t be quantified.

I think increases are very regional, and your situation not unusual. I bought a flat in what was then considered a pretty terrible part of London in 2007 for £70,000 and sold it last month for £260,000. However, I also bought a house in the Scottish Borders in 2011 for £240,000 and sold it last year for £260,000, so it barely washed its face when you factor in fees, inflation and so on.

Generally speaking, I think we need to get away from this idea that home ownership is about being able to count on a huge value increase. It should be about a secure roof over your head.

Comtess- thanks for you reply. Maybe I’ve worded it wrong. I’m more concerned that barely anything has come off the mortgage rather than the increase in value:

I agree with its about where you live. Our area has always been popular but it's gone mad since the first lock down
Nightmare for locals

I'm sorry to hear about your situation, you won't want to hear ours really - the answer is yes, it's gone from £325k to £500k or maybe more in current market.

The mortgage is a different issue. We're 13 years into a 25 year term, have paid off something like £100k of £250k. Repayment mortgage. Is yours interest only? If repayment it should be going down noticeably by now?

yes, We bought ours for 270K in south Cambridgshire, its now worth approx 500K

Yes we did and it has in Essex.

But you won’t have to pay anything once the mortgage is paid off so it was still worth it. Having to pay rent in retirement would be a challenge.

Why isn’t your mortgage going down? If it isn’t repayment, switch it asap would be my advice.

Nope. It's worth less than when we bought it.
We have, however, made a big dent in the mortgage. What is making you say 14 years of repayments haven't reduced the balance?

It took a while but when we last remortgaged valuation was up about 40k from 140k to £180...our £95k mortgage stands at about £70 now, so unless you are interest only you must be chipping away at your mortgage? Early years of mortgage are mostly interest but starts going down more rapidly as you go along.

it is a repayment mortgage and there is only 14k paid off

I think there's a huge north south divide on this one. We bought this house in Yorkshire in 2006 and it's probably gone up around 20-30% at most in that time, while some in the south will have more than doubled.

However, we've paid off more than half the mortgage, so unless you're on a very long term mortgage or the interest rate is high, you should have made quite a dent in it.

How is only £14k paid off in 14 years? Have you borrowed extra in that time, or had interest only periods? If not that surely can't be right...

We owed about £84k when we last remortgaged in 2008 and we now owe about £33k, but that's on a 20 year term and the interest rate has been under 1% for about the last 10 years.

But we haven't overpaid as its not been worth it as have put the money in savings instead. But we've paid off over £50k in 12/13 years. Are you sure of your figures?

You must (really must) on an interest-only mortgage if it hasn’t gone down in 14 years. If it’s capital and interest you would have paid over half the total. So for eg:

Borrow 100k at 3 per cent over 25 years

Total cost of loan plus interest = 141,632.62

Monthly repayments 472.11

Annual payments = 5,665.32

14 x annual payments = 79,314.48 ie 56 per cent of the total.

If you are on interest-only, you are only paying the interest ie the additional 41,632.62 it costs to borrow the money. So you will still owe 100k at the end of the mortgage period, and you would hope to be able to sell your house for more than that to pay it off.

Honestly you cannot have paid a mortgage for 14 years and paid off ‘barely anything’. It’s not possible.

No borrowed extra and no interest only periods.

Yes bought for 305 in 2007, now valued at 625 which is ridiculous tbh. We started on interest only but switched to repayment after a year.

Ours has gained, and we've paid a lot off the mortgage

You do pay off more of the interest at the start but you shouldn't definitely have paid off more than £14k unless your mortgage is tiny.
Here is an example of a £100k more over 30 years, at 3.5% interest.
You should check your mortgage - have you remortgaged to a better rate in the last couple of years? Might be worth speaking to a broker.

Different areas have different changes in house prices but where I am (London/Essex border) has gone up significantly (unfortunately I bought after it went up though!).

I bought early 2008 (Jan, offered Nov) just as house prices were falling. It was advertised for £100k I paid £92k.

It’s now worth around £135k so not a bad increase. I’m on a Midlands city.

I’ve got £14k left on the mortgage. Have you been overpaying anything? Honestly £50 a month makes a huge difference. If you can scrape together £10 a week from a change jar it’s surprising how much difference it makes!

*should not shouldn't!

Have you remortgaged at all in the last 13/14 years? How much did you borrow and how much do you pay each month? What is the interest rate and mortgage term?

Those are the questions you need to ask yourself to work out what the issue is.

If you haven't remortgaged, you might be on the standard variable rate, which is very high for some banks. If you have remortgaged, to get a new product, even if you haven't increased your borrowing, you might have increased the term, which might explain why you haven't paid off very much.

Only £14k? I have been in my house for 4 years and 20kish has come off (I’m not overpaying either) our interest is low (1.85%)

I really don't understand, OP. How big is your mortgage, how long is the term, what is the interest rate?

We owed £70k in 2007, we now owe less than £30k.
You must be on a fairly high interest rate?

@Flowersblue

it is a repayment mortgage and there is only 14k paid off

I'm sure there's something you're missing somewhere, but look on the bright side, £14k for 13/14 years rent is nothing, under £100 pm.