It just becomes garden variety borrowing then right, and unsecured at that.

Well, if you aren't borrowing constrained, the working paper costs only $5. :-)

Among my circle of acquaintances at least those who are most likely to borrow against home equity lines of credit are those you'd be least likely to characterize as “borrowing constrained” and are lured into it by the convenience—it isn't a lot harder than using a credit card.

I'm also suspicious about trying to generalize from behavior patterns in the UK to draw any conclusions about behavior patterns in the US. Bank regulations are pretty different, for one thing.

The purchase of a house usually leads to higher spending as people paint, change the carpets, buy new furniture, drapes, and other things to fill the space. There is inummerable numbers of small items, hose nozzles, lawn fertilizer, tulip bulbs, etc, etc etc, that people buy once they become a homeowner that they do not buy as a renter.

Yep-corrected.

Dang, looks like James is covering for me again! :-o

Legion,

As a homeowner I completely sympathize. Actually your consumption is the same, it is just things your "fun consumption" has gone into maintaining the house.