Used their home as a cash cow through re-mortgaging.. now in deep do do

antrobus

homelessskilledworker wrote: »

These people used their property like a cash cow, how many years did they give an impression of doing well for themselves when they were in fact living a false dream.

My big question for myself in recent times and it is what basically gives me my present stance on property, is how many other people are THE WALKING DEAD, how many are similar to this family.

On the basis of the following...

http://www.financemarkets.co.uk/2008/12/12/mortgage-equity-withdrawal-kept-families-afloat/

... I'd say quite a few.

wotsthat

antrobus wrote: »

On the basis of the following...

http://www.financemarkets.co.uk/2008/12/12/mortgage-equity-withdrawal-kept-families-afloat/

... I'd say quite a few.

That link is from December 2008 and based on a MEW study by Durham University between 2001-05.

Trying to use that link to suggest that there are quite a few people currently using their houses as a cash cow is a little tenuous.

dtsazza

RenovationMan wrote: »

Clearly the problem was living beyond their means

This is it. The whole story.

Obviously the details are important to those in similar situations, and it's a good cautionary tale. But ultimately the problem was what you stated - they were spending more than they had coming in, and they didn't have any stable and liquid savings on which to draw. The MEWing provided a mirage to allow this to continue for some time, but it wouldn't and couldn't have resolved the underlying issue.

vivatifosi

iB1 wrote: »

Hmmm...

From reading her other articles from the Google link posted, she sounds like a mini Liz Jones. Either that, or she's just accepting the Mail £££ to write up exaggerated BS about herself and her family. Some of that stuff is TMI!

Funny, I thought exactly the same. Both of them also exasperate me to the extent I want to stick my head in a blender. Arrrrrrggghhhhhhhhhh!!!

No doubt there'll now be a book, along the lines of Liz, about how she's in the mire. Then she can leave the husband of great sex and shack up with a former rock star zzzzzzzzzzzz.....

BigAunty

I remember in my early twenties how my former school friends got on the property ladder when I could barely afford lodgings and being very baffled by how one of them said how much her property was increasing in value every week.

Both later had their properties repossessed when interest rates shot up, when one in a couple suffered unemployed and the other had a relationship breakdown. One told me getting a council place was the best thing that happened to her, the sheer relief of having a home that cost less than she earned for a change.

hillcats

Bad Money Management !