Saturday, Sep 15, 2007
The consequences of a decade of Gordonomics and your Mortgage
Sunday Herald: Mortgage madness will end in inflation, inflation, inflation
Even at the height of the ruinous US housing boom, US banks weren't offering 125% mortgages or six times earnings to people on £18,000 a year. Yet that is what British high rollers such as Alliance and Leicester and Northern Rock have been doing and have "helped" first-time buyers get on to the "housing ladder" with 40 year interest only mortgages which are so good you don't even get to own the house.
Posted by enuii @ 11:23 PM (441 views) Add Comment
5 Comments
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1. Bimlam said...
Brilliant article!
2. Veritas said...
Brilliant article.
3. Nelson said...
Brilliant article - a balm to my battered opinions of the last few years. I really hope my friends will listen now and stop their ruinous considerations of huge mortgages paid for by salaries very vulnerable to a recession (most of them in PR).
4. Orwell said...
But, at least we don't have any sub-prime to worry about here, do we? Good old British banks have been prudent lenders, ensuring mortgages have been given only to people who can pay, and on the basis of rock-solid assets. Have they heck. In fact, the British banks have been throwing money at home buyers without a thought for the consequences for most of the past decade. Just ring up one of the websites. You don't even have to prove your earnings.
Would David Smith, our guru like to comment?
5. whiteknight said...
Note quite understood the currency implications.
Reducing rates is not some magical thing, and cannot be done this time around.
China is about to need to export some inflation. Our inflation will be going up rapidly.