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By-Tor

Why There Wont Be Credit Tightening For A While Yet

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8.4M households with mortgages (from ONS census data)

£973B in mortgage debt (from www.creditaction.org.uk)

Assuming an average 5% interest rate this equates to £48 billion in interest payments

£56.35B in credit card debt, 75.4% interest bearing at an average of 15.44% (all from creditaction) gives £6.56 billion in interest payments

Thus the banks are taking £54,560,000,000 in interest payments alone of us each year which is exactly why they can afford some bad debt without seriously tightening their lending criteria.

Also some more stats:-

From the ONS Census

21.5 Million housholds in England and Wales

6.4 Million own outright

8.4 Million under mortgage

2.9 Million council house households

2.1 Million private let households

From the www.creditaction.org.uk website

£974.6 Billion secured debt (up 10.6% in last year)

£974.6 billion divided by 8.4 million mortgages = £116,000 average mortgage.

The increase of 10.6% on secured lending is about £88 billion, assuming HPI of approx 5% (max anybody is suggesting) then you could say that approximately £44 billion is MEW if so this is £44B divided by 8.4 million mortgages = £5,000 MEW for EVERY mortgage. Everyone with a mortgage has been supplementing their salary to the tune of almost £5,000. This is obviously not true, I haven't for a start, and so haven't countless others so thats one hell of a pay rise someone's getting.

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The increase of 10.6% on secured lending is about £88 billion, assuming HPI of approx 5% (max anybody is suggesting) then you could say that approximately £44 billion is MEW if so this is £44B divided by 8.4 million mortgages = £5,000 MEW for EVERY mortgage. Everyone with a mortgage has been supplementing their salary to the tune of almost £5,000. This is obviously not true, I haven't for a start, and so haven't countless others so thats one hell of a pay rise someone's getting.

I know of 3 couples who have done this. One couple bought a house for 60k in the late 90s. They remortgaged it in 2003 for 110k and bought an MG sportscar, home entertainment centre etc.; then they sold up and went abroad! The two other couples have these savings/current account/mortgage type loans all-in-one where you can extend or reduce borrowing whenever you feel the need. Easy come, easy go. It's a very easy MEW arrangement. Of course the loan companies know you'll borrow rather than save!

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  • 302 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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