Monday, April 2, 2007

Growth in equity withdrawals to finance spending

UK mortgage equity withdrawal soars in Q4

Rising house prices encouraged Britons to take more cash out of their homes in the fourth quarter than the third, Bank of England data showed on Monday

Posted by confused76 @ 11:55 AM (511 views)
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8 thoughts on “Growth in equity withdrawals to finance spending

  • Now, is this new round of equity withdrawal to finance spending on goods and services or to service increasing debt levels?

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  • I would imagine CC debt is a big player, plus the vital holiday let funding in the latest Channel 4 driven hot spot.

    Does anybody know when it became “equity release” instead of second mortgage, or just BIGGER LOAN ?

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  • Tipping Point says:

    Last time there was a HPC, negative equity only effected a relatively small number of people. These people were usually first time buyers who being in their 20’s and 30’s had the ability to work their way out of the financial difficulty they faced.

    This time, due to re-mortgaging and equity withdrawal the problem is likely to have an affect on far larger a percentage of the population, especially if the drop is as much as 50%. Ultimately the banks are going to have to pick up the tab. Lets hope their pockets are deep enough.

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  • george monsoon says:

    Second mortgage or MEW, its all very bad news for the short term future of this country.

    I just hope when it all goes pear shaped that I still have a job, so that I can take advantage of 10 grand housing.

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  • Yes, the term “equity release” is a new euphemism, implying that there was wealth trapped in the house which deserves to be freed.

    The mortgagees will be anything but free when they realise that they have released themselves into negative equity.

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  • This means even more people remortgaged when rates were lower, so even some that might otherwise have escaped will be now feeling the pinch as rates rise; I feel sorry for the people duped into putting their homes in jeopardy (because most of the public aren’t that smart, so it’s not really their fault they’re so easily conned) but it’s all good news for a sooner-rather-than-later “correction” (another euphemism – they’re good these, aren’t they!).

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  • holding out says:

    The BBC carries this story under the headline: Mortgage equity withdrawal robust – as though it’s a sign of a bouyant sustainable economy they must have the same journalists as the Daily Express.

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  • Your new house price is just for christmas, the debt is for life.

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