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Ologhai Jones

Equity Withdrawal Is Back

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I just heard a piece on Radio 4's Today programme about how mortgage equity withdrawal is now higher than it was in 2007. (I'm pretty sure that's what was being alleged--when listen again becomes available, I'll have to double check.) It was on at 08:45 if anyone wants to listen to it later.

The question was asked: is MEW back because banks are more willing or because people are now more sure their houses will be worth more in the future? However, the case that was most discussed seemed to be those who can't afford to live without using their house as an ATM.

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I just heard a piece on Radio 4's Today programme about how mortgage equity withdrawal is now higher than it was in 2007. (I'm pretty sure that's what was being alleged--when listen again becomes available, I'll have to double check.) It was on at 08:45 if anyone wants to listen to it later.

The question was asked: is MEW back because banks are more willing or because people are now more sure their houses will be worth more in the future? However, the case that was most discussed seemed to be those who can't afford to live without using their house as an ATM.

It never went away.

MEW ( second mortgage) is just another loan, but it is cheaper than a credit card.

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So much for the tories

They talked a good election but it turns out they are just as bad as labour.

The next collapse wont be the banks..it#s the currency/government.

I am off to buy some gold.

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MEW is only available to those who have a property that the lenders think is/has increased in price, and to those who have a secure enough income that can service the costs....spending their homes to supplement their income and help the economy at the same time.......magic. ;)

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The BoE publishes HEW data. Looks like the net figure is still negative though in there I'm sure there could still be a rising number of people taking a lump sum when they remortgage onto current silly low rates.

SERIES DESCRIPTION

LPQBE92 Quarterly changes of total sterling housing equity withdrawal (previously called mortgage equity withdrawal) by individuals (in sterling millions) seasonally adjusted

DATE LPQBE92

31/03/02 5091

30/06/02 8750

30/09/02 8738

31/12/02 10939

31/03/03 11637

30/06/03 10319

30/09/03 12723

31/12/03 14246

31/03/04 13785

30/06/04 12362

30/09/04 9807

31/12/04 5424

31/03/05 5422

30/06/05 6835

30/09/05 7940

31/12/05 9191

31/03/06 6654

30/06/06 8494

30/09/06 9322

31/12/06 10880

31/03/07 8293

30/06/07 7468

30/09/07 8129

31/12/07 4017

31/03/08 2154

30/06/08 -1909

30/09/08 -5912

31/12/08 -11692

31/03/09 -8842

30/06/09 -8338

30/09/09 -6489

31/12/09 -4341

31/03/10 -9124

30/06/10 -11022

30/09/10 -10839

31/12/10 -11829

31/03/11 -11069

30/06/11 -11006

30/09/11 -10983

31/12/11 -11365

31/03/12 -11296

30/06/12 -12377

30/09/12 -10535

31/12/12 -11042

31/03/13 -12912

30/06/13 -12508

30/09/13 -10403

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So much for the tories

They talked a good election but it turns out they are just as bad as labour.

The next collapse wont be the banks..it#s the currency/government.

I am off to buy some gold.

British politics is just a puppet theatre, the puppeteers are running the show.

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That is clearly evident.

....but where do you think all this money that is needed to basically live is going to come from if people can't borrow it?........more to the point is, where will it come from for the growing numbers of people now that do not have access to cheap money because they don't hold assets, have poor paying jobs and credit? ;)

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Mew is a trap for the gullible.

lets take Joe Blokes, he earns £20,000 pa and tops it up for 10 years with an extra £10,000 of MEW.

Joe spends 10 years feeling wealthy on this £30,000 a year lifestyle.

Then,

Joe's house stops rising in value. No more MEWing

He has to drop back down to his true income, this results in a 33% drop in living standards.

Joe also has an extra £100,000 to pay on the mortgage, interest rates go up.

Joe is screwed.

Our politicians want to keep Joe in his house cash making machine.

Edited by Lord D'arcy Pew

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....but where do you think all this money that is needed to basically live is going to come from if people can't borrow it?........more to the point is, where will it come from for the growing numbers of people now that do not have access to cheap money because they don't hold assets, have poor paying jobs and credit? ;)

that will be the time to emigrate

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I just heard a piece on Radio 4's Today programme about how mortgage equity withdrawal is now higher than it was in 2007. (I'm pretty sure that's what was being alleged--when listen again becomes available, I'll have to double check.) It was on at 08:45 if anyone wants to listen to it later.

The question was asked: is MEW back because banks are more willing or because people are now more sure their houses will be worth more in the future? However, the case that was most discussed seemed to be those who can't afford to live without using their house as an ATM.

Heard it too. Very lame questioning of the expert salesman.

2/3 is for living expenses.

Interviewer didn't make the point that this is selling the family silver for the benefit of the banks. He did mention the fact the price paid will have increased hugely over the term of the loan, but the salesman waved this away by saying we have to look at current circumstances and if it helps kids get on the housing ladder that's alright, innit?

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