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AteMoose

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People who have released 25% equity before the peak of the last boom, with the bank saying they can live in the house until it is sold without interest. They are now wanting to sell there houses are being hit by a clause that says they need to pay back 75% of the capital gain back to the bank on sale of the property! The orginal deals ended because no investers. People stuck in houses that are too big, and people without equity left for children...

Obviously these people should have sold in the trough, and didnt read the small print, now they are trying to sell at the next PEAK!

Presenter points out as house prices have gone up so much, perhaps better to wait to sell because house prices wont go up as much. He suggests you could wait until your house is less before moving house.... ;P

Women says she would only have 150k left to buy another property in the SE if she sold her house as the bank would take the rest of the equity, impossible to buy in the current market, because house prices have gone up.....

presnter now pointing out the beauty of the current schemes are the interest rates are now set so you know how much you will owe when you die, however hang on a min, didnt he just say earlier house prices probably wont be going up as much, and suggested to another women to wait until her house was worth less.

Are current MEW schemes for OAPs even more dangerious with prices so high?

did anyone else hear the programme?

Edited by moosetea

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I thought his comment to the final caller who was interested in MEWing was the worst. Something along the lines of "These new MEW deals are much better because you pay a fixed amount of interest and get to keep future house price rises."

Forgot to mention that she'd be screwed if the house decreased in value, which didn't even seem to register as a possibility.

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I thought his comment to the final caller who was interested in MEWing was the worst. Something along the lines of "These new MEW deals are much better because you pay a fixed amount of interest and get to keep future house price rises."

Forgot to mention that she'd be screwed if the house decreased in value, which didn't even seem to register as a possibility.

yes especially as to an earlier caller he suggested to wait until her house was worth less, and prices woudnt be going up as much because of recent rises. The new type of MEW seems like a much better product for the bank at a market peak...

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yes especially as to an earlier caller he suggested to wait until her house was worth less, and prices woudnt be going up as much because of recent rises. The new type of MEW seems like a much better product for the bank at a market peak...

Hi, sorry can someone explain this to me? How does this MEW Work? I though you just borrowed money against your property? How can the bank stop you from moving or taking a percentage of your profits?

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Hi, sorry can someone explain this to me? How does this MEW Work? I though you just borrowed money against your property? How can the bank stop you from moving or taking a percentage of your profits?

The Bank of Scotland's scheme worked like this:

In, say, 1990 you had a house valued at £80k. You could get 25% of this value (20k) to spend or invest as you like. The deal is that when you sell it, you pay the bank an amount that equates to 75% of the capital growth (3 times the equity percentage you originally withdrew). At the time, no-one knew how much HPI there would be, and in fact, these schemes were withdrawn because investors didn't think there would be enough returns for them!

In practice the 80k house is now valued by the bank at £240k i.e. a growth of £160k, and the bank now wants 75% oof that i.e. 120k PLUS its original 20k, a total of £140k. Not bad for a 20k loan is it? (the example was complicated in that the vendor's daughtere disputed the bank's valuation, but it seems there's little she can do about it)

I heard the programme, but I have to say I had little sympathy for the vendor. No doubt he thought he was cashing in on his "success" in making a shrewd investment and didn't think of the downsides. Just like any property speculator, I suppose.!

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The Bank of Scotland's scheme worked like this:

In, say, 1990 you had a house valued at £80k. You could get 25% of this value (20k) to spend or invest as you like. The deal is that when you sell it, you pay the bank an amount that equates to 75% of the capital growth (3 times the equity percentage you originally withdrew). At the time, no-one knew how much HPI there would be, and in fact, these schemes were withdrawn because investors didn't think there would be enough returns for them!

In practice the 80k house is now valued by the bank at £240k i.e. a growth of £160k, and the bank now wants 75% oof that i.e. 120k PLUS its original 20k, a total of £140k. Not bad for a 20k loan is it? (the example was complicated in that the vendor's daughtere disputed the bank's valuation, but it seems there's little she can do about it)

I heard the programme, but I have to say I had little sympathy for the vendor. No doubt he thought he was cashing in on his "success" in making a shrewd investment and didn't think of the downsides. Just like any property speculator, I suppose.!

I understand. This is a con.

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



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