UK Households wealthier than ever before

Graham_Devon

marathonic wrote: »

A personal loan is much less likely to be approved than a mortgage increase - due to security for the bank and the fact that homeowners, in general, are ranked higher on the credit rating scale.

Also, if the renter loses their job, their only option to repay the loan is to sell the car. I could sell the car, I could sell the house, I could take in lodgers, I could rent the house and move in with friends/relatives, etc.

The best buy tracker mortgage with no arrangement fee has a rate of 2.69%. The best buy personal loan has a rate of 5.1% up to £15,000 or 7.3% over it. Now, get your calculator out

What arrangement fee.

And an interest rate 2-3 times higher
I wouldn't refer to someone that goes for the cheapest method of borrowing money as a genius... I just call it common sense!

And were back to the default position.

The homeowner gets the best rates ever. (You wouldn't by the way, not on the LTV you used). They don't have arrangement fees. Everything is just rosy.

The renter, however, being the evil person that they are can't get a personal loan as the banks aren't lending. If they can, they certainly won't get the rates generally available....no no no. But for the homeowner, this isn't an issue, obviously.

I guess this is the financial genuis of it all right? Mere assumptions that follow the best possible scenario in every which way?

.....and after all that, you still just have more debt.

Probably the most humurous thing is that you are using examples of MEWing to buy new shiny BMW's to make the point that you are not debt junkies, but financal gurus.

ess0two

Graham_Devon wrote: »

That applies to mortgages too. Ask Hamish.

Next...

With the aid of HPI,it boosts you in better lending brackets,reagrdless of whether you can spend that paper profit.

Graham_Devon

ess0two wrote: »

With the aid of HPI,it boosts you in better lending brackets,reagrdless of whether you can spend that paper profit.

Yer, we said this on page 1.

Though it's good were now at the point where it's at least seen as further lending, rather than "accessing one wealth". That in itself is progress.

ess0two

Graham_Devon wrote: »

Yer, we said this on page 1.

So HPI all round is good.

dryhat

Graham_Devon wrote: »

Probably the most humurous thing is that you are using examples of MEWing to buy new shiny BMW's to make the point that you are not debt junkies, but financal gurus.

:rotfl:

:T

Graham_Devon

dryhat wrote: »

:rotfl:

:T

Fools I tell yer - fools!

ess0two

Perhaps we could use the MEWing for BTL,instead of the BMW,genious all round chaps:money:

marathonic

Graham_Devon wrote: »

Probably the most humurous thing is that you are using examples of MEWing to buy new shiny BMW's to make the point that you are not debt junkies, but financal gurus.

You're easily humoured if taking a post out of context is all it takes. I was stating that homeowners with equity in their property have much more options open to them than a renter. This could be potentially starting a business as stated before - and I included a BMW just to prove of the WIDE variety of options, none of which need to be particularly sensible.

I'll give you an example, I've been looking at sites in my locality lately to determine whether, for my next house, it would make sense to build as opposed to buy.

The sites I've looked at cost in the region of £75k. As my current equity in my house stands at £50k, I haven't a hope. My mortgage is on a 2-year deal. Through maximising savings and possible increases in equity, I may be able to draw down enough to purchase the site secured only on my own home - increasing my LTV.

If I were to go for this option, I'd consider keeping the site and paying down my increased mortgage as quickly as possible. With each monthly repayment, the difference between what I'd sell my current house for and my outstanding mortgage would decrease. Were property prices to rise further, this would compound the increase significantly.

I'd then choose a point, where I feel that selling the house and getting a new mortgage would result in enough capital available to build the standard of house that I want, and sell my current house.

The above, in my opinion, is riskier than most people can handle but , if it plays out, could see me in a house worth significantly more than my current house with very little additional borrowings.

Graham_Devon

ess0two wrote: »

Perhaps we could use the MEWing for BTL,instead of the BMW,genious all round chaps:money:

Yes, thats a much better example.

Taking out debt, to take out even further debt. Blows holes in my point does that. :undecided

HAMISH_MCTAVISH

Mr._Pricklepants wrote: »

Yer, some weird statements on this thread...

Carl31 insinuating holding depreciating cash is better than holding an appreciating asset, dryhat labelling someone who overpays their mortage a 'debt junkie' and Mr. Muddle claiming you need to go live in a cardboard box before you can access housing wealth.

Okay.

It's like some weird alternate dimension.

Dev flip flopping around like a fish out of water, trying to deny wealth is wealth because it's not cash under your mattress.