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Ash4781

Mortgage Equity Withdrawl

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I see there has been a release on mortgage equity withdrawl from boe. I know this one gets misinterpreted so what do we think? Oh also see mail looking to takeover the express.

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I think it means people are increasing desperate to pay down debt.

And Mervyn King will be increasingly desperate to stop them replace the money they are burning.

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I think it means people are increasing desperate to pay down debt.

And Mervyn King will be increasingly desperate to stop them replace the money they are burning.

From what i've seen the media are spinning it that 'home owners' are paying down the mortgage but i'm reading that they are paying the mortgage and those who would have contributed to increasing equity withdrawal are being told no by the bank. So net mortgage debt drops.

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I see there has been a release on mortgage equity withdrawl from boe. I know this one gets misinterpreted so what do we think? Oh also see mail looking to takeover the express.

(http://www.housepricecrash.co.uk/graphs-housing-equity-withdrawal.php)

Housing equity withdrawal is a good barometer of sentiment. People are paying off mortgage debt because they feel the value of their home is falling and they want to avoid negative equity. Good news for HPC.

When people felt prices were rising (until q2 2008) HEW was up to £17 BILLION (2003 q4) a quarter.

Anyone wondering why domestic demand will not drive a strong recovery need look no further. The huge withdrawals in the last decade were never sustainable

A giant credit ponzi / consumption scheme that was always going to crash. How the FSA, BOE, government failed to see it I don’t know. Now the repayment has started demand will be suppressed for a decade to come.

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Someone needs to have a word with these people dont they realise they are blatantly destroying someone elses wealth

...maybe they have realised paying off debt = personal wealth.....whereas before the more debt you had = wealth for everyone. ;)

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There was a really good thread a few years back about this and sentiment. We looked back at HEW during previous crashes. I think the conclusion was when it was + for 9 months or more* than the market was on the way back up. As others have said excellent sentiment indicator.

* There were many wee 'blips' where it went + for periods before going - again.

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There must come a time when this starts to be felt by banks.

We see that high percentage offers of loans are back on offer so this must mean that the high rates of real interest rates payable by business and home purchase lenders is too high and as a consequence if avoidable they will not take out loans liar loans.

Similarly the threat of doom to come and impending expiry of less punitive fixed rates means that those who can will repay loans that they already have.

Forex shows that these things have been happening consistently now since the last quarter of 2007.

It seems though that the excuse of risk is used by banks to maintain high rates.

Does this mean that as repayment continues and borrowing stalls banks will capitulate or raise their rates further to maintain profit levels extortion.

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(http://www.housepric...-withdrawal.php)

Housing equity withdrawal is a good barometer of sentiment. People are paying off mortgage debt because they feel the value of their home is falling and they want to avoid negative equity. Good news for HPC.

When people felt prices were rising (until q2 2008) HEW was up to £17 BILLION (2003 q4) a quarter.

Anyone wondering why domestic demand will not drive a strong recovery need look no further. The huge withdrawals in the last decade were never sustainable

A giant credit ponzi / consumption scheme that was always going to crash. How the FSA, BOE, government failed to see it I don't know. Now the repayment has started demand will be suppressed for a decade to come.

Feck me! Equity Withdrawal was up to £17 BILLION (2003 q4) a quarter, which in turn fueled consumer spending?!

Did Merve and Gordon think this could go on forever?!!

Was this their masterplan?!!!

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Feck me! Equity Withdrawal was up to £17 BILLION (2003 q4) a quarter, which in turn fueled consumer spending?!

Did Merve and Gordon think this could go on forever?!!

Was this their masterplan?!!!

Believe me, this was one of Gordon's two CENTRAL PLANs to foster 'sustainable (:rolleyes: ) economic growth'. His other central plan was to increase the size (and pay) of the Public Sector.

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There is no MEW at the moment for two simple reasons:

1. Home owners with poor LTV, maxed on credit etc. bank says NO.

2. Home owners with good mortgage rates - base +1% etc. and good credit records - bank says YES - but then want to negotiate new mortgage rates base +3% etc.

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Believe me, this was one of Gordon's two CENTRAL PLANs to foster 'sustainable (:rolleyes: ) economic growth'. His other central plan was to increase the size (and pay) of the Public Sector.

+1. No sh1t Sherwick! The moron actually believed it could continue forever. His policy was to let the City do whatever it pleased as long as asset prices and the tax take were increasing - then redistribute the 'wealth' to the public sector.

Mervyn King should take much of the blame because he went along with it all (gutless, or for personal interest reasons) despite knowing that it was doomed to failure.

Edited by Constable

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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