Mortgage Equity Withdrawal in the UK
According to the Council of Mortgage Lenders equity withdrawal increased from £10 billion in 1984 to £23 billion in 1988.
http://www.cml.org.uk/cml/filegrab/p...f.pdf?ref=3854
Rex, think about Mortgage Equity Withdrawal. The great cash machine in the sky that supports so so many peoples lifestyles in the UK.
That huge money tap just stopped gushing. Never mind the negative equity people - of which there will be 1 million by the end of the year. ALL THAT MEW MONEY IS NOT GOING TO BE IN NEXT YEARS ECONOMY!
Look at the last time this happened. After the recession (and fall in house prices) of 1992 UK equity withdrawal fell to £12.5 billion from £17.8 billion.
By 2000, equity withdrawal had increased to £30 billion. During this period there was a steady rate of economic growth.
The Bank of England report that mortgage equity withdrawal has continued to rise since 2000. Can you guess what it was last year? Can you guess what its going to be next year? Can you guess what those missing tens of Billions of Pounds is going to do to the consumer economy?
Money is disappearing so fast its heart stopping. Just like airlines will be soon.