Set Your Equity Free Now Before Its Too Late --seriously

[Realistbear]

http://observer.guardian.co.uk/cash/story/0,,2156239,00.html

'Release cash in your home while you've still got time'

An equity release specialist is so worried about a property crash that it is urging clients to act now rather than wait for retirement, writes Jill Insley

Sunday August 26, 2007

The Observer

A leading equity release firm is warning homeowners who are planning to release money tied up in their homes to act sooner rather than later to avoid the effects of a property market crash.

Nigel Mergatroyd Hare-Scott of equity release firm Home & Capital believes that UK property prices could start falling significantly next year, emulating the movement of prices in the US, where homes have dropped in some areas by up to 18 per cent in the past 12 months..../

Hare-Scott has stuck his neck on the block by speculating that

UK house prices could fall by as much as 30 per cent

in some areas, a view that many others in the housing industry would regard as extreme.

Miles Shipside, commercial director for property website Rightmove, says it is unreasonable to expect the US and UK property markets to react in the same way: 'The US has had 17 consecutive rate rises, while we have had five, and [uS lenders] appear to have been less careful and regulated in lending, particularly on teaser rates.' This has left many borrowers, who took a short-term fix when the US base rate was 1 per cent, unable to meet their monthly mortgage payments now the base rate has risen to 5.25 per cent.

(Wuh-uh-uh-uh-uh-uh-aaaaaaaaahhhh

)

So what Nigel is saying is guarantee yourself even more negative equity NOW by liberating equity so when you get repossessed the bank gets left with the house and all of its debt obligations while you have spent it all on a Vogue, Nanotech TV and a few holidays in NY buying Chinese tat there cheaper than you can buy Chinese tat here? The only problem I see in this is that the banks may have cottoned on since the credit squeeze.

There is somethinng likeable about Hare-Scott though and I can't quite put my finger on what it is?

In the meantime Miles seems a bit worried suggesting that its different here when the whole of last week's news was to the effect it isn't!

Edited August 26, 2007 by Realistbear

[29929BlackTuesday]

"A stagnation in prices could result in an increase in first-time buyers in a year or two's time, he says. While house prices remain level, first-timers will benefit from salary increases and a chance to build up a bigger deposit"

Oh cheers.

The whole article seems to be why the person they are quoting is completely wrong.

Can't the media just report rather that refute refute, refute?

[Guest DissipatedYouthIsValuable]

"A stagnation in prices could result in an increase in first-time buyers in a year or two's time, he says. While house prices remain level, first-timers will benefit from salary increases and a chance to build up a bigger deposit"

Oh cheers.

The whole article seems to be why the person they are quoting is completely wrong.

Can't the media just report rather that refute refute, refute?

Yeah, I'm just waiting for that sub-inflationary pay rise to get me into the market stagnation.

If the person who's written that guff sees this, you're a ****.

[IDN]

Yeah, I'm just waiting for that sub-inflationary pay rise to get me into the market stagnation.

If the person who's written that guff sees this, you're a ****.

aye- give him 2 barrells from me - pay increase my ar**

does the muppet really think in 2 years time FTB will be able to afford to buy homes at current prices? not a chance

[the end is a bit nigher]

this shows up what equity release really is i.e. a loan secured on your house - no-one is 'releasing' equity, they are merely borrowing - if you borrow now and the value of the house falls it doesn't matter as long as you keep up the repayment - and if not, they'll just take the house

[EmpiricalBear]

Equity release started as a way for people nearing the end of their life to remortgage. In such cases, retirees, or terminally ill people this makes a lot of sense. You don't care that you are giving away the house as you won't be around to live in it.

The guy in the article is talking about equity release from this standpoint... so in this case he's actually right. It makes sense to remortgage now while you can get X than get X-30% next year... remembering that it won't be your liability if the market price drops, you'll be dead anyway.

[Guest Charlie The Tramp]

A leading equity release firm is warning homeowners who are planning to release money tied up in their homes to act sooner rather than later to avoid the effects of a property market crash.

Or put another way, help us out as our business has fallen through the floor.

Reminds me of those hard sell salesmen, buy now or they will soon all be gone.

[Bearfacts]

http://observer.guardian.co.uk/cash/story/0,,2156239,00.html

'Release cash in your home while you've still got time'

In the meantime Miles seems a bit worried suggesting that its different here when the whole of last week's news was to the effect it isn't!

Actually I think Miles is quite right - we shouldnt expect the UK market to react in the same way - afterall our market is much more overvalued than the US market with the average UK home costing double the average American home ( which incidentally is also twice as big making the difference four times in terms of $ per sq foot ) ! The UK housing market correction will make the US crash seem like a tea party.

[madasafrog]

http://observer.guardian.co.uk/cash/story/0,,2156239,00.html

'Release cash in your home while you've still got time'

An equity release specialist is so worried about a property crash that it is urging clients to act now rather than wait for retirement, writes Jill Insley

Sunday August 26, 2007

The Observer

A leading equity release firm is warning homeowners who are planning to release money tied up in their homes to act sooner rather than later to avoid the effects of a property market crash.

Nigel Mergatroyd Hare-Scott of equity release firm Home & Capital believes that UK property prices could start falling significantly next year, emulating the movement of prices in the US, where homes have dropped in some areas by up to 18 per cent in the past 12 months..../

Hare-Scott has stuck his neck on the block by speculating that

UK house prices could fall by as much as 30 per cent

in some areas, a view that many others in the housing industry would regard as extreme.

Miles Shipside, commercial director for property website Rightmove, says it is unreasonable to expect the US and UK property markets to react in the same way: 'The US has had 17 consecutive rate rises, while we have had five, and [uS lenders] appear to have been less careful and regulated in lending, particularly on teaser rates.' This has left many borrowers, who took a short-term fix when the US base rate was 1 per cent, unable to meet their monthly mortgage payments now the base rate has risen to 5.25 per cent.

(Wuh-uh-uh-uh-uh-uh-aaaaaaaaahhhh

)

So what Nigel is saying is guarantee yourself even more negative equity NOW by liberating equity so when you get repossessed the bank gets left with the house and all of its debt obligations while you have spent it all on a Vogue, Nanotech TV and a few holidays in NY buying Chinese tat there cheaper than you can buy Chinese tat here? The only problem I see in this is that the banks may have cottoned on since the credit squeeze.

There is somethinng likeable about Hare-Scott though and I can't quite put my finger on what it is?

In the meantime Miles seems a bit worried suggesting that its different here when the whole of last week's news was to the effect it isn't!

Is it just me that looks at this and thinks "Well doesn't he profit from people believing his statement. Isn't it just slightly possible that he is just jumping on the bandwagon in order to drum up more business?". I may be way off the mark here but its just a gut feeling.

[PunK BeaR]

This is a fairly reckless article to publish. Equity release has never been a smart plan (unless you were gonna kick the bucket soon) but after the last few weeks of news its just plain supidity. This guy obviously sees a bleak future for his company when house prices plummet so he is urging people to take the cash now to line his pockets before its too late.

[Sour Mash]

This is a fairly reckless article to publish. Equity release has never been a smart plan (unless you were gonna kick the bucket soon) but after the last few weeks of news its just plain supidity. This guy obviously sees a bleak future for his company when house prices plummet so he is urging people to take the cash now to line his pockets before its too late.

Equity release right now is a great idea - selling your house, although past the market peak, will realise a lot of equity that might take a decade to re-accrue.

On the other hand, taking out a huge loan with your house as collateral makes you as dumb as a bag of hammers.

[Guest vicmac64]

I think the crash will come this week - too late for my mother but maybe not for you - please see a financial advisor first as I am not qualified - and do get their opinions in writing - if they are not prepared to put it on paper then you will have to make your own decision.

[Wol]

Nigel Mergatroyd Hare-Scott

There's a name to conjure (your money) with.