Surrey cash buyer Report post Posted April 4, 2006 Bank of England MEW Data Q4 2005 £m 2004 Q4 7,903 2005 Q1 6,154 Q2 9,950 Q3 8,858 Q4 11,806 Looks like there is some serious debt consolidation going on out there. Quote Share this post Link to post Share on other sites
jp1 Report post Posted April 4, 2006 That August rate-cut was just the tonic the miracle economy needed! Quote Share this post Link to post Share on other sites
OzzMosiz Report post Posted April 4, 2006 Whoa! thats a huge increase! Quote Share this post Link to post Share on other sites
AteMoose Report post Posted April 4, 2006 Exactly the same pattern as the last crash.... Quote Share this post Link to post Share on other sites
benjamin Report post Posted April 4, 2006 must be debt consolidation - not that many new cars compared with the past and retail trade not too healthy either. where else can it be spent? Quote Share this post Link to post Share on other sites
Realistbear Report post Posted April 4, 2006 My Council Tax has been jacked up to just over 1900 pounds. Many would have to MEW to pay such a vast sum. Looks like NuLabour is going to continue to force people to borrow long term to get out of short term debt. The HPI monster is now feeding on itself. DeJavu 1989 is right. Quote Share this post Link to post Share on other sites
Prude Report post Posted April 4, 2006 Bank of England MEW Data Q4 2005 £m 2004 Q4 7,903 2005 Q1 6,154 Q2 9,950 Q3 8,858 Q4 11,806 Looks like there is some serious debt consolidation going on out there. Just revisit the spin put on the figures for overall mortgage lending for December 2005 as per BBC. We can now see that they (The Council of Mortgage Lenders) hail a 25% increase in lending over Dec 2004 but that from these figures Mewing had increased by nearly 50%! The spin put on it was; 'According to Duncan Pownall, spokesman for Bradford & Bingley, mortgage lending picking up in the latter part of 2005 could indicate first-time buyers returning to the property market. "Strength in the housing market combined with buyers realisation that prices will not significantly fall has encouraged more and more people to step onto the property ladder," he said. ' Quote Share this post Link to post Share on other sites
kingofnowhere Report post Posted April 4, 2006 Those who spend more each month than they earn will inevitably drift deeper into debt. I don't find these figures particularly surprising. Many are 'consolidating' unsecured debt into secured debt as we speak. Millions of people are unwittingly getting poorer every day in this 'miracle' economy. Well. apart from the MEW because people have died , and the MEW when people downsize, and the STR Mewing..... Quote Share this post Link to post Share on other sites
Guest consa Report post Posted April 4, 2006 Exactly the same pattern as the last crash.... Well spotted, only it is much larger obviously due to extra "value" of houses it should soon fall off a cliff. Quote Share this post Link to post Share on other sites
marko Report post Posted April 4, 2006 My Council Tax has been jacked up to just over 1900 pounds. Many would have to MEW to pay such a vast sum. Looks like NuLabour is going to continue to force people to borrow long term to get out of short term debt. The HPI monster is now feeding on itself. DeJavu 1989 is right. Good God the whole thing is ROTTEN. Bankers lending into existence huge sums of money and then buying their 80ft yachts with the interest payments, NuLabour crushing the middle class under inflation-busting tax rises, dodgy politicos flogging peerages, Government shovelling hundreds of millions of tax money into the hands of the likes of Crapita for IT systems that don't work, and a population slowly sinking into a sort of debt serfdom the likes of which we have never seen. When a bank lends in the form of MEW, the loan is NEW money: it is NOT someone elses deposit that is being lent, it is new money. It serves to enslave the idiot who is doing it, but it also causes whopping inflation as the total supply of money in the economy goes up, and this punishes the rest of us. Make no mistake, the financiers are the ones running the show and always have been. People are becoming debt slaves to a narrow elite who have the ability to create money from nothing. WHY are we not debating the real issue behind HPI? The way money is supplied to the economy as debt, and the fact that the banks, by swishing numbers back and forth on a screen, are gradually laying claim to more and more of the produce of the economy? We all like to think that we are a home-owning country....********!! The financial sector is gradually laying claim to a larger and larger percentage of the country's housing stock. Meanwhile, bonus season in the city is reported and noone bats an eyelid - why the f**k do you think these ba5tards pay themselves so much!?!?! WAKE UP!!!!!!!!!! Quote Share this post Link to post Share on other sites
Guest consa Report post Posted April 4, 2006 Well. apart from the MEW because people have died , and the MEW when people downsize, and the STR Mewing..... Can you elaborate?, I don't believe the catagories you describe relate to the MEW figure. Quote Share this post Link to post Share on other sites
non-FTBer Report post Posted April 4, 2006 Well. apart from the MEW because people have died , and the MEW when people downsize, and the STR Mewing..... People don't MEW when they STR they sell and settle the mortgage in full. People who downsize don't MEW either. They sell up and then either buy for cash or a smaller mortgage... still not in MEW figures. People who die also have their mortgage settled if outstanding by the house being sold/repossessed etc. Still not in MEW figures. A bit of straw clutching there KON?? Quote Share this post Link to post Share on other sites
The_Surveyor Report post Posted April 4, 2006 must be debt consolidation - not that many new cars compared with the past and retail trade not too healthy either. where else can it be spent? Spotted a Halifax MEW ad in this months 'What Car' magazine last night. Not actually seen any in a car mag suggesting buy that nice new motor on page 10 with your house equity and pay it off over the next 20 twenty years before Quote Share this post Link to post Share on other sites
kingofnowhere Report post Posted April 4, 2006 Can you elaborate?, I don't believe the catagories you describe relate to the MEW figure. they are all examples of MEW. 1)Dad dies, equity released from housing buy someone buying it with a mortgage, Therefore MEW 2) sell house to person with mortgage , buy a smaller house put the change in the bank 3) Sell house to person with mortgage, move into rental, put money into bank All examples of MEW Not an example 1) Increase mortgage, use money to buy BTL Mortgage equity withdrawal is borrowing that is secured on the housing stock but not invested in it. It doesn't matter if the borrower is the beneficiary of the equity withdrawal or not People don't MEW when they STR they sell and settle the mortgage in full. People who downsize don't MEW either. They sell up and then either buy for cash or a smaller mortgage... still not in MEW figures. People who die also have their mortgage settled if outstanding by the house being sold/repossessed etc. Still not in MEW figures. A bit of straw clutching there KON?? Nope, they are all examples of MEW STR is an example of MEW, People downsizing is MEW, and if people die, and the house is sold, then the equity released is MEW All perfectly valid MEW examples, no straws just facts. Quote Share this post Link to post Share on other sites
Guest consa Report post Posted April 4, 2006 they are all examples of MEW. 1)Dad dies, equity released from housing buy someone buying it with a mortgage, Therefore MEW 2) sell house to person with mortgage , buy a smaller house put the change in the bank 3) Sell house to person with mortgage, move into rental, put money into bank All examples of MEW Not an example 1) Increase mortgage, use money to buy BTL Mortgage equity withdrawal is borrowing that is secured on the housing stock but not invested in it. It doesn't matter if the borrower is the beneficiary of the equity withdrawal or not Nope, they are all examples of MEW STR is an example of MEW, People downsizing is MEW, and if people die, and the house is sold, then the equity released is MEW All perfectly valid MEW examples, no straws just facts. None of the above are quoted in the MEW figure and therefore not valid MEW examples, I don't think there is a need for me to explain why to the majority on here. What you are describing is profit taking not mortgage equity withdrawal, ie: extracting equity from the value of a property. Lets leave it at that before you embarass yourself further. Quote Share this post Link to post Share on other sites
Prude Report post Posted April 4, 2006 Mortgage equity withdrawal is borrowing that is secured on the housing stock but not invested in it. It doesn't matter if the borrower is the beneficiary of the equity withdrawal or not by your own definition STR cannot be MEW as there is no borrowing secured on any house. STR is a settlement. Same applies to inheritence. Quote Share this post Link to post Share on other sites
kingofnowhere Report post Posted April 4, 2006 None of the above are quoted in the MEW figure and therefore not valid MEW examples, I don't think there is a need for me to explain why to the majority on here. What you are describing is profit taking not mortgage equity withdrawal, ie: extracting equity from the value of a property. Lets leave it at that before you embarass yourself further. Yep, they are all examples of MEW, and I'm really not the one that is embarassing myself. And I do think I need to explain to SOME people here. You could either ask any economist or in fact anyone that has any understanding of the figures. what you can't do just go making up new defintions just to suite your POV! I suggest you read here, page 101 (Ohh Look LTS and Trading down!) http://www.bankofengland.co.uk/publication...in/qb010105.pdf Table A Ways of withdrawing and injecting equity Withdrawals Last-time sales A seller does not buy a new property, so the proceeds of the sale are released from the housing market. Trading down A seller moves to a cheaper property but reduces the mortgage by less, to leave a cash sum. Over-mortgaging A moving owner-occupier increases their mortgage by more than the difference between the old and new house prices. Remortgaging A borrower takes a new mortgage and increases their debt without moving properties or improving the property to the same extent. Further advances and A borrower raises a further advance on an existing second mortgages mortgage or takes a second mortgage without improving the property to the same extent. Quote Share this post Link to post Share on other sites
lypsey Report post Posted April 4, 2006 Kingofnowhere You are totally wrong You state"STR is an example of MEW, People downsizing is MEW, and if people die, and the house is sold, then the equity released is MEW" If you STR you do not have a mortgage , if you move to a smaller house anf pocket the change and if someone dies and you sell the house you pocket the money. The clue is in the wording MEW . It means you have to increase your mortgage. All the examples you give you are lowering it?? Quote Share this post Link to post Share on other sites
AteMoose Report post Posted April 4, 2006 MEW involves removing money but keeping the asset as the BOE table says. Your examples are sales.... Quote Share this post Link to post Share on other sites
kingofnowhere Report post Posted April 4, 2006 by your own definition STR cannot be MEW as there is no borrowing secured on any house. STR is a settlement. Same applies to inheritence. Yes there is, the person who buys the house will nearly always have a mortgage... Quote Share this post Link to post Share on other sites
OzzMosiz Report post Posted April 4, 2006 Table A Ways of withdrawing and injecting equity Withdrawals Last-time sales A seller does not buy a new property, so the proceeds of the sale are released from the housing market. Trading down A seller moves to a cheaper property but reduces the mortgage by less, to leave a cash sum. Over-mortgaging A moving owner-occupier increases their mortgage by more than the difference between the old and new house prices. Remortgaging A borrower takes a new mortgage and increases their debt without moving properties or improving the property to the same extent. Further advances and A borrower raises a further advance on an existing second mortgages mortgage or takes a second mortgage without improving the property to the same extent. Hang on. STRing or moving down to cheaper property does release equity sure. BUT it is NOT MORTGAGE EQUITY WITHDRAWL. Quote Share this post Link to post Share on other sites
kingofnowhere Report post Posted April 4, 2006 Kingofnowhere You are totally wrong You state"STR is an example of MEW, People downsizing is MEW, and if people die, and the house is sold, then the equity released is MEW" If you STR you do not have a mortgage , if you move to a smaller house anf pocket the change and if someone dies and you sell the house you pocket the money. The clue is in the wording MEW . It means you have to increase your mortgage. All the examples you give you are lowering it?? No as a STR you don't, but the person who purchased off you does. So the Market reflects this as MEW I really do know what I'm talking about on this. You do not have to increase your Mortgage, but the overall market does... Therefore STR sells house for £250,000 and takes out £100,000. FTB who buys the house has a mortgage of £200K and equity of £50K. Therefore the STR has MEWed £100,000 and the new buyer has injected £50K (Negative MEW), into the housing market. Giving a net MEW of £50K When the STR comes to buy and reinvests the £100,000 this will be counted as equity injection (Negative MEW) Quote Share this post Link to post Share on other sites
The Colour Report post Posted April 4, 2006 Good God the whole thing is ROTTEN. Bankers lending into existence huge sums of money and then buying their 80ft yachts with the interest payments, NuLabour crushing the middle class under inflation-busting tax rises, dodgy politicos flogging peerages, Government shovelling hundreds of millions of tax money into the hands of the likes of Crapita for IT systems that don't work, and a population slowly sinking into a sort of debt serfdom the likes of which we have never seen. When a bank lends in the form of MEW, the loan is NEW money: it is NOT someone elses deposit that is being lent, it is new money. It serves to enslave the idiot who is doing it, but it also causes whopping inflation as the total supply of money in the economy goes up, and this punishes the rest of us. Make no mistake, the financiers are the ones running the show and always have been. People are becoming debt slaves to a narrow elite who have the ability to create money from nothing. WHY are we not debating the real issue behind HPI? The way money is supplied to the economy as debt, and the fact that the banks, by swishing numbers back and forth on a screen, are gradually laying claim to more and more of the produce of the economy? We all like to think that we are a home-owning country....********!! The financial sector is gradually laying claim to a larger and larger percentage of the country's housing stock. Meanwhile, bonus season in the city is reported and noone bats an eyelid - why the f**k do you think these ba5tards pay themselves so much!?!?! WAKE UP!!!!!!!!!! Mate you are my hero Quote Share this post Link to post Share on other sites
kingofnowhere Report post Posted April 4, 2006 Hang on. STRing or moving down to cheaper property does release equity sure. BUT it is NOT MORTGAGE EQUITY WITHDRAWL. It is if the person buying the house uses a mortgage. Quote Share this post Link to post Share on other sites
OzzMosiz Report post Posted April 4, 2006 It is if the person buying the house uses a mortgage. You're talking b0||0ck5 Quote Share this post Link to post Share on other sites
