Mortgage Equity Withdrawal (MEW) Law and Legal Definition
Mortgage equity withdrawal or MEW is the process of removing equity from homes and converting this into cash for other expenses. This is done by obtaining a loan against the market value of the property. MEW reduces the real value of a property by the number of new liabilities against it. The real value of the home remains constant, if the value of the property increases at the same rate as the mortgage equity withdrawals. However, if home price decreases to below the value of the liabilities, it creates a negative real value of the property to the owner.