Equity 'going back into property'

mystic_trev

UK homeowners are no longer cashing in on the value of their properties to fund spending, official figures show.
Quarterly Bank of England figures on housing equity withdrawal showed a second successive negative reading between July and September.

http://news.bbc.co.uk/1/hi/business/7802819.stm

Looks like many have got the message. All it needs now is for someone to tell Gordon he can't spend his way out of this recession!

Airwolf1

July was my biggest month for this. It did start to drop after this, but then October was my biggest month ever. 51 external valuations for people wanting to cash in on their equity, for whatever purpose. November was busier than July as well.

amcluesent

I intend to take a mortgage on the house after the next BoE rate drop. 5yr fixed, to fund extension and conservatory; builders are desperate for work and the coming Sterling inflation will wipe away the real debt.

Airwolf1

Wouldn't you be better doing this in december 2009 time, when prices may have reached their lowest?

IveSeenTheLight

Airwolf1 wrote: »

Wouldn't you be better doing this in december 2009 time, when prices may have reached their lowest?

My Mr airwolf, what big set of crystal balls you have

amcluesent

I'm not doing the place up to sell but to improve the house for myself...I bought it in 1987 so am not short of equity (yet!)

GracieP

mystic_trev wrote:

Looks like many have got the message.

Have they got they message or do they attempt to MEW but discover upon valuation that they don't actually have any equity left to release?

WTF?_2

GracieP wrote: »

Have they got they message or do they attempt to MEW but discover upon valuation that they don't actually have any equity left to release?

Probably just those spoilsport banks coming up with 'excuses'.

The government ought to do something

WTF?_2

amcluesent wrote: »

I intend to take a mortgage on the house after the next BoE rate drop. 5yr fixed, to fund extension and conservatory; builders are desperate for work and the coming Sterling inflation will wipe away the real debt.

Yep - for the same reason I'm now considering taking on a small mortgage when I buy in order to get a better property, instead of buying outright.


The timing will need to be right - I will be aiming to get a ten year fix at the lowest rate possible. Obviously I'll be taking it on from a government underwritten bank as they will be offering the craziest rates since the taxpayer will be footing the cost of the batsh!t-crazy lending that the government will enforce.


Might as well get something back since I'll be footing the bill for it along with the rest of the country and the next generation of kids.

ManAtHome

GracieP wrote: »

Have they got they message or do they attempt to MEW but discover upon valuation that they don't actually have any equity left to release?

Sounds more likely - pretty sure year-on-year increase in personal debt has been 7% to 8% for most months of this year.

mewbie_2

I'm assuming homeowners are shovelling cash / equity into their properties, while the crash leeches that equity away through the back door. So, it's slightly misleading. Yes they are not borrowing so much, and are paying debt back. But the property is worth less month on month.

Can it be paid back faster than it loses value thus retaining a reasonable equity percentage? Dunno.

200k property. Loses 1% month. Equals 2k. That's a fair amount to pay back in capital terms.

I don't know who these people are anyway. They obviously haven't got the Brown message. Spend for Britain.