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Dave Beans

Britons Using Homes 'like Bank Accounts': Boom In Remortgaging As Homeowners Free Up Cash To Help With Day-To-Day Living Costs

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**Alarm!** **Alarm!**

Isn't that just saying/hoping that the younger generation are going to pay for your new TV?

It is isn't it.

I'll sit on my **** and the next fu*kwhit that comes along will pay me for the last 5 years of my life.

Thanks.... but no thanks.

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Homeowners are increasingly using their properties like a bank account

They be calling it something like privatisation or PFI next instead of mortgage equity withdrawal.

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This article is actually about remortgaging with an unevidenced bit about MEW for living expenses.

It is highly logical to remortgage now - fixed rates have plummeted and the gap between then and SVRS have widened.

Secondly, MMR makes it unlikely that anyone could borrow for living expenses if you do not have the ability to repay with free income. Ok, perhaps some are buying cars,but I doubt any are using it to support everyday expenses.

The other boom in MEW is to support new BTL purchases. The article does not distinguish between what type of mortgage the borrowing is being done, but there has been a big uptick in MEW from BTL properties to support new lending.

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Some of the comments in the article are HPC-esque.

Just when you thought they wouldnt repeat the old equity withdrawal trick to boom spending .I have been telling the doomsters on here for weeks that mortgage equity withdrawal is back to near record levels as we return to the good old days of using our houses to buy fancy cars and holidays and grow the economy. Why go to work when your house earns more than you do? Our high cost living society and our need to consume means we need very low interest rates and costs of borrowing and high house prices so we can borrow and splash the cash in style .What can possibly go wrong! .''Everything is awesome"

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Shania never gets it wrong:

When you're broke go and get a loan
Take out another mortgage on your home
Consolidate so you can afford
To go and spend some more when
You get bored

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Some of the comments in the article are HPC-esque.

I dont think most thought that...indeed the treasury's own forecasts have called for a big increase in private debt...no shock it would in some form be related to houses.

My own view is the yanks dont seem quite as hellbent on another housing bubble as the UK and yank policies would cut short any bubble here.

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Know someone in London who's retired around 50. She said she'd be allright as long as house prices don't stop going up.

Not go down, just stop going up. The faith in eternal HPI is unbelievable.

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I love the idea of freeing up cash, although of course the cash isn't free, its debt and you have to pay it back. Now if people where freeing up savings that would be a different matter, but it's not it's freeing up debt, this should be the headline. Not that it would make any difference as people don't see the distinction now between credit and money.

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I thought MEW went out of fashion in 2009? :blink:

How are these fools going to maintain their lifestyles when it's time to retire? They will still have to pay back the mortgage through their pension!

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I blame the common weakness of character that prevents some from being able to resist spending everything they earn unless it is already commited in the form of debt repayment obligations.

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I blame the common weakness of character that prevents some from being able to resist spending everything they earn unless it is already commited in the form of debt repayment obligations.

The amount of debt being decided by others, with compensation/forbearance if servicing the debt causes hardship :rolleyes:.

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I thought MEW went out of fashion in 2009? :blink:

How are these fools going to maintain their lifestyles when it's time to retire? They will still have to pay back the mortgage through their pension!

It's our financial experts coming up with ever ingenious ways to get people in debt.

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The amount of debt being decided by others, with compensation/forbearance if servicing the debt causes hardship :rolleyes:.

That and the certainty of aqcuiring that which you desire against the certainty that you can afford it at the time of purchase. Many people will choose the former over the latter, leaving the affordability to fate.

Plus a poor level of education in maths. The question of whether it is cheaper to save for that new car for x years given y inflation in new car price inflation or borrow now for it at z interest rate is too much for some to calculate.

Plus, the thrill of instant gratification.

It won't work out for the best for everyone. Many of these people will live to regret their decision, or they would if they had any savvy.

But as someone else said, the difference between money and credit is so slight some can't tell them apart. The unlucky ones will learn, the rest will die believing in castles made of sand.

Edited by Digsby

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I thought MEW went out of fashion in 2009? :blink:

How are these fools going to maintain their lifestyles when it's time to retire? They will still have to pay back the mortgage through their pension!

Compo. Dead cert, and it will be 10s of billions. Government are relying on institutional mis-selling to finance the recovery. Mortgages and Mew can never be repaid. The real fools are the people with bank deposits. It makes sense to get the biggest liar loan conceivable.

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