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slater14

Mew - The Horrifying Facts

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Here is what MEW looks like for the average Joe in the street.

This is my own research (I even paid £2 to landregisrty to get the exact dates).

Bought house Dec 2003

Remortaged June 2004

Remortaged Feb 2005

Remortaged August 2005

My girlfriend kept going on and on and about how well X was doing and why cant we have all these lovely things because we've got more money (!) than X?

I said we dont have that sort of money to throw around on stuff that will be worthless in 6 months....my girl not happy.

X does a 'normal job and earns less than 20k (I think 16 - 18k) per year but drives a convertible Mazda MX5 went on two expensive holidays, has the house looking lovely with lots of designer furniture etc etc..

Unless X is on the game......what else can it be? - MEW

She now understands how X is doing it......and guess what she says? - "why cant we do that" :D:D:D:o:o:rolleyes::rolleyes:

bless her little cotton socks....she wants me in the poor house!

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Guest Charlie The Tramp

Hi slater, were the remortgages seperate charges on the Register by different lenders.

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QUOTE - Whoever said women were not competitive was talking out his ****!!

Indeed.

QUOTE - When you say you researched this at the LR do you mean you looked up this person X and found a transcript of all their remortgagings?

No. you cannot search a person - but you can search the property address. You can see who owns that property, when it was bought and price paid, title (freehold, leashold, ground rents payable etc etc), planning applications,....and crucially - 'OTHER CHARGES HELD AGAINST PROPERTY' OR 'INTERESTED PARTIES' in that property and the dates when those 'others' became an interested party....basically remortages.

I have re-read the download and there are some pretty stiff privacy clauses and 'must not be used for or divulged to' type of things....hence I wont post it.

Hi slater, were the remortgages seperate charges on the Register by different lenders.

Hiya Charlie,

Two were by the same lender interspersed with other lender 'high street' lenders.....each 'intersted party' has a unique reference code which shows that they are not for the same thing.

Example: Original mortage - ABC123 Interested Party June - 2004 ACCD13344 and so on..

Guys, I would seriously try this for yourself, its the most interesting and enlightening £2 I have ever spent.....and its just criminal what you can find out about people without their knowledge or authorisation!

Edited by slater14

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No. you cannot search a person - but you can search the property address. You can see who owns that property, when it was bought and price paid, title (freehold, leashold, ground rents payable etc etc), planning applications,....and crucially - 'OTHER CHARGES HELD AGAINST PROPERTY' OR 'INTERESTED PARTIES' in that property and the dates when those 'others' became an interested party....basically remortages.

Ha ha, how embarassing for them!

frugalista

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Yes, there's a sense in which this information should only be available if you are interested in making a serious bid on a property.

That's how it works in Holland, where Land Registry information is sold, in effect, to agents that assist in the the purchase of a house, but is not available to Joe Public. So you have the information when you are close to purchasing, but you can't print out your entire street's mortgage history and take it down the pub with you laughing.

Wonder how many people have been made to feel like wa#*ers because of the openness of Land Registry figures?

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Yes, there's a sense in which this information should only be available if you are interested in making a serious bid on a property.

That's how it works in Holland, where Land Registry information is sold, in effect, to agents that assist in the the purchase of a house, but is not available to Joe Public. So you have the information when you are close to purchasing, but you can't print out your entire street's mortgage history and take it down the pub with you laughing.

Wonder how many people have been made to feel like wa#*ers because of the openness of Land Registry figures?

Well for me its a God send!

This will be one of my biggest tools for buying in a couple of years. I will seek out properties which are massively re-mortaged and throw offers at them all until one bites.

You find a house with no re-mortages and very little debt....forget it. they will stay put and ride out the crash.

Those who have lived life like David & Victoria- watch out!....slater is getting itchy feet to start buying again!

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Wonder how many people have been made to feel like wa#*ers because of the openness of Land Registry figures?

Yup, there is this somewhat obnoxious boss at work who just bought a huge posh house in an expensive area (in the US, where I work). Where I live, the equivalent of the land registry mortgage data is available not only for free, but online! Colleague of mine looked him up. Property was $1.2m. Turns out he only put $300k down, it is a $900k mortgage! We all had a good laugh about that.

frugalista

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This will be one of my biggest tools for buying in a couple of years. I will seek out properties which are massively re-mortaged and throw offers at them all until one bites.

You find a house with no re-mortages and very little debt....forget it. they will stay put and ride out the crash.

Those who have lived life like David & Victoria- watch out!....slater is getting itchy feet to start buying again!

I like your thinking soldier ;)

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Just been re-reading the info from LR

I forgot to mention - this information DOES NOT include any 'unsecured' borrowings - Credit Cards, Overdrafts, Store Cards, Hire Purchase Agreements, etc. etc. etc.

How frightening is that!

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What an eye opener: I must admit I have lived in cocoon concerning the topic of MEWs. I always thought you could only extend your Mortgage to improve the property on which the Mortgage was originally loaned. All this under the reasoning; lower loan rates are only offered for things that will out last the loan period, thus guaranteeing minimum risk, sensible leading, steady returns, happy home owners and future business.

But, as said, this thread is a real eye opener (I assume the MEWs weren’t used to improve the house itself). Until now I comforted myself in the knowledge that things won’t be that bad, because most people are sensible when buying a home. I thought; some will get stung because they bought at the top, but not to the extent that they did last time. Most will not make as much money as they thought but will come to realise that their next step up the ladder is actually better if prices fall and things will trundle on as normal after a slight HPI readjustment.

How naïve was I? If people really have been allowed to extract some of the value of their own home (under the belief that its value will always grow) just to ‘keep up’ with the Jones’ then I’m convinced; the downturn is going to see real misery.

Why is this practice allowed? Surely homeowners didn’t think this up own their own? There must have been some dodgy little adviser in the process somewhere. And why did big institutions allow it? Do they pretend it’s all for home improvement and turn a blind eye? And where was the Government in all this?

Is there statistics for non home improvement MEWs?

And, while I’m on my soapbox; what goes through a persons head in such a situation? Yes the value of one’s home may increase but the loan won’t get smaller by borrowing more. The only rationale I can think is: As the ongoing rise in property value means I am wealthier, I may as well live like it, because, after all, I can always downsize back to the original mortgage or more likely, no mortgage at all, if and when I need to.

Do people really think like this? Batten down the hatches!

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What an eye opener: I must admit I have lived in cocoon concerning the topic of MEWs. I always thought you could only extend your Mortgage to improve the property on which the Mortgage was originally loaned. All this under the reasoning; lower loan rates are only offered for things that will out last the loan period, thus guaranteeing minimum risk, sensible leading, steady returns, happy home owners and future business.

But, as said, this thread is a real eye opener (I assume the MEWs weren’t used to improve the house itself). Until now I comforted myself in the knowledge that things won’t be that bad, because most people are sensible when buying a home. I thought; some will get stung because they bought at the top, but not to the extent that they did last time. Most will not make as much money as they thought but will come to realise that their next step up the ladder is actually better if prices fall and things will trundle on as normal after a slight HPI readjustment.

How naïve was I? If people really have been allowed to extract some of the value of their own home (under the belief that its value will always grow) just to ‘keep up’ with the Jones’ then I’m convinced; the downturn is going to see real misery.

Why is this practice allowed? Surely homeowners didn’t think this up own their own? There must have been some dodgy little adviser in the process somewhere. And why did big institutions allow it? Do they pretend it’s all for home improvement and turn a blind eye? And where was the Government in all this?

Is there statistics for non home improvement MEWs?

And, while I’m on my soapbox; what goes through a persons head in such a situation? Yes the value of one’s home may increase but the loan won’t get smaller by borrowing more. The only rationale I can think is: As the ongoing rise in property value means I am wealthier, I may as well live like it, because, after all, I can always downsize back to the original mortgage or more likely, no mortgage at all, if and when I need to.

Do people really think like this? Batten down the hatches!

"Free" money.

Welcome to the "New paradigm".

Rational players not wanted.

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Is there statistics for non home improvement MEWs?

MEW accounted for 9% of the countries income, on average people were boosting there salaries by 9%, through the magic cash machine that was also there home. Most of those loan companies you see on the tv purple loans, are companies that do MEW, the problem is huge. Ofcourse now that prices stopped rising its harder to MEW..

My Theory is the drop in MEW, and peoples income is one of the causes of the retail slowdown....

Also if you look at the graph you can see we have seen a slight rebound in mew as people try and get out of credit card debt (scarily identical to the rebound in the last crash), I expect MEW to increase for a couple more quarters as people struggle with debt, before crashing through the floor..

MEWIncome..JPG

post-552-1131013047_thumb.jpg

Edited by moosetea

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Do we know how many people mew e.g what percentage of the population have been mewing to live.

I personally feel that the majority of people will be ok as most will not have mewed or if they have it will be within their means.

What concerns me is that the mewing is concentrated on a smaller number of people who have mewed much more than 9%.

We must all know people who bought years ago and could easily ride out a house price crash. But there is always one isn't there. You know -the one who has a lower wage than you but manages to live in a better house with a better car and still takes two holidays a year etc.

How much of the population would need to be 'hit' hard in a falling/stagnant market to have an impact?

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On side note the process of MEWing becamme a heck of a lot easier after mortgage regulation came in.

Before hand most BS had different rules relating to additional lending (borrwing money to tart up the house) and Capital Raising (borrowing money to buy a car or go on holiday) Capital raising is more of a business risk so was always lent with an increased rate attached to it.

After M-Day all this went out the window and basically you could take equity out of your property to do with as you please.

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Guest Charlie The Tramp

Having read this thread I have together with another member done a little investigation on Mew.

In our opinion, on the evidence discovered, Remortgaging and MEW are two different things.

MEW is a method where you extract your money from the increase in the property`s value, the so called free money. This is a fallacy and really does not exist, but the lenders come on, as it sounds better to average Joe Public.

My own experience goes back to 1970 when I remortgaged on my first property to buy a garage and land on the site of my leasehold maisonette. The Mortgage documents were simply amended, repayments adjusted, and no further charge added to the Register.

As slater says the person in question had multi charges on the register, so no remortgaging has taken place.

What we have is the new in word Property Secured Loan or PSL at a higher rate of interest than the original mortgage, and individual monthly repayments for each charge on the Register. If these charges are by the same lender then a compounded monthy repayment.

Just follow the rates given by all the Brokers Ocean etc depending on the size of the loan the interest is variable, the more you borrow the cheaper the rate.

I have seen evidence of this and it is shocking and IMHO the tip of the iceberg.

And so our investigation continues.

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Having read this thread I have together with another member done a little investigation on Mew.

In our opinion, on the evidence discovered, Remortgaging and MEW are two different things.

MEW is a method where you extract your money from the increase in the property`s value, the so called free money. This is a fallacy and really does not exist, but the lenders come on, as it sounds better to average Joe Public.

My own experience goes back to 1970 when I remortgaged on my first property to buy a garage and land on the site of my leasehold maisonette. The Mortgage documents were simply amended, repayments adjusted, and no further charge added to the Register.

As slater says the person in question had multi charges on the register, so no remortgaging has taken place.

What we have is the new in word Property Secured Loan or PSL at a higher rate of interest than the original mortgage, and individual monthly repayments for each charge on the Register. If these charges are by the same lender then a compounded monthy repayment.

Just follow the rates given by all the Brokers Ocean etc depending on the size of the loan the interest is variable, the more you borrow the cheaper the rate.

I have seen evidence of this and it is shocking and IMHO the tip of the iceberg.

And so our investigation continues.

Sorry, Charlie, I'm being really thick here, but I don't really understand the point you are trying to make. can you re-phrase it for a thicko please. I'm off to the pub now, but I'll have a look when I get back.

Thanks

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Here is what MEW looks like for the average Joe in the street.

This is my own research (I even paid £2 to landregisrty to get the exact dates).

Bought house Dec 2003

Remortaged June 2004

Remortaged Feb 2005

Remortaged August 2005

My girlfriend kept going on and on and about how well X was doing and why cant we have all these lovely things because we've got more money (!) than X?

I said we dont have that sort of money to throw around on stuff that will be worthless in 6 months....my girl not happy.

X does a 'normal job and earns less than 20k (I think 16 - 18k) per year but drives a convertible Mazda MX5 went on two expensive holidays, has the house looking lovely with lots of designer furniture etc etc..

Unless X is on the game......what else can it be? - MEW

She now understands how X is doing it......and guess what she says? - "why cant we do that" :D:D:D:o:o:rolleyes::rolleyes:

bless her little cotton socks....she wants me in the poor house!

Does it say how much they have MEWed out of the property?

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  • 301 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% +
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      • up 5%



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