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Randall Herbert

Families Pay Card Debt With Mortgages

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Excellent articale. Thanks for posting it.

"Some 100,000 families remortgaged their homes in January and the amount borrowed in this way has increased by over £10bn each month since last summer".

Based on Norwich's new hospital built under PFI at a cost of approx 250 million the country could have 40 new hospitals per MONTH on this amount of borrowing.

Obviously with the PFI the hospital will never be owned by the NHS.

Does anyone know the total amount lent for martages for Jan?

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Guest Charlie The Tramp

Does anyone know the total amount lent for mortgages for Jan?

Total secured lending on homes in January 2006 was £974.6bn. This has increased 10.6% in the last 12 months.

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I know somebody who has just done this, they also bought 2 new cars and stuck in on the mortgage!!

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I know somebody who has just done this, they also bought 2 new cars and stuck in on the mortgage!!

:lol: Unbelievabubble :lol:

I hope your acquaintance really likes their job, they are going to be working hard at it for many years to come, well past the day when those two cars are considered old bangers.

frugalista

Edited by frugalista

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I know somebody who has just done this, they also bought 2 new cars and stuck in on the mortgage!!

Actually this is a good idea, but only if you can actually afford it (ie increase your mortgage repayments to repay the additional advance)

No point in borrowing money at 16% when you can do it at 6%.

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Actually this is a good idea, but only if you can actually afford it (ie increase your mortgage repayments to repay the additional advance)

No point in borrowing money at 16% when you can do it at 6%.

Yes but not a good idea in the housepricecrash sense...

Edited by notanewmember

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Actually this is a good idea, but only if you can actually afford it (ie increase your mortgage repayments to repay the additional advance)

No point in borrowing money at 16% when you can do it at 6%.

Yeah but no but yeah but.....

A car loan is for 3 - 5 years. A mortgage isn't!!! So the total amount of interest paid will be astronomical as the length of the loan is much much longer...

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Not a good idea in the sense that it'll cost more to borrow at 6% over the long term than 16% in the short term. I guess he must think his job is secure for the remaining term of the mortgage, and that there's no chance of negativity equity in the future.

I suppose each generation must learn.

Edited by objective

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Actually this is a good idea, but only if you can actually afford it (ie increase your mortgage repayments to repay the additional advance)

No point in borrowing money at 16% when you can do it at 6%.

Trouble with that is,

18% for 5 years -v-

6% for 30 years, interest paid?

Inflation would balance it a bit to the end perhaps as the effective size of the loan is reduced.

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I know somebody who has just done this, they also bought 2 new cars and stuck in on the mortgage!!

The general public will not believe in House price Deflation (HPD) until they come to MEW their last.

The new MEW value quoted by the mortgage lender will then be less than their present mortgage.

REALITY BITES

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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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