I'm curious about this scenario but I don't know enough about how mortgages are calculated to work it out.
How much does a property have to decrease in value before its worth selling, taking the hit in NE and then buying a now substantially cheaper (possibly nicer, or better located) property at a higher SVR?
Or is it worth holding onto a tracker until the bitter end, even if the mortgage is far higher than the value of the property?
The SVR will definitely rise but in a smaller principal sum.
However in the long term, the higher priced house might recover to close or even above it's original price and the tracker becomes golden again.
I haven't thought too deeply about this, it's more a musing.
Thoughts?
How much does a property have to decrease in value before its worth selling, taking the hit in NE and then buying a now substantially cheaper (possibly nicer, or better located) property at a higher SVR?
Or is it worth holding onto a tracker until the bitter end, even if the mortgage is far higher than the value of the property?
The SVR will definitely rise but in a smaller principal sum.
However in the long term, the higher priced house might recover to close or even above it's original price and the tracker becomes golden again.
I haven't thought too deeply about this, it's more a musing.
Thoughts?