Sunday, Jul 26, 2009
Emergency resuscitation for FTBs prior to election
Guardian: Ministers consider scheme to guarantee mortgages
"Treasury could underwrite 'risky' home loans Proposed scheme pushed by US insurer Genworth. First time home buyers could be thrown a lifeline under plans being considered by the Treasury to underwrite 'risky' mortgages, allowing people with only small deposits to buy homes. Since the credit crunch took hold, banks have demanded far tougher criteria for lending, asking buyers to provide between 25% and 30% of the price of a home as a deposit." So the state will intervene with taxpayers money at this stage of the economic cycle?
Posted by quiet guy @ 09:34 PM (991 views) Add Comment
9 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. paul said...
Don't worry - they don't have the money to make any difference so it'll be Homebuy under a different name on 'mutually beneficial' terms to the government (ie. no cost) and homebuilders (ie. some sort of home equity swap scheme that basically fleeces the FTB).
As a consequence no-one will take it up and the housing market will continue to plummet.
2. Hammered said...
The way the government are trying to save the next election via the housing market utterly repulses me. As if this is about 'helping' FTB's into homeownership. If you left things alone, Labour, you would help them (and I) much more by allowing them to buy in trough in 3 years time at 20-30% lower than they are today. Why won't you allow us the value for money we have patiently waited for and just let us get on with our lives!?
I'm still holding out that when we have to go to the IMF in 6-9 months time they will demand that our interest rates get back to where they really ought to be, at about 8%. Check-mate coming in 3 moves.
3. titaniccaptain said...
Imagine the outcry in the public sector which is facing cuts.........No money available for the NHS BUT if you want a mortgage its yours the risk will be soaked up by the taxpayer...eerrrmmm instead of paying for public services....jobs would be seen to be lost to pay for backing dodgy mortgages.....
Now this may not be the "FULL" reality of the situation but if your a public sector worker and are nervous about the position of your job and the government which pays your wages is throwing away money to underwrite mortgages your going to be pishhed off!!!....
4. gone-to-colombia said...
Is there no act of stupidity this too foolish for this government?
5. alan_540 said...
Why doesn't someone tell Gordon to give it up and offer him a nice cushy job somewhere not in this country?
6. inbreda said...
@3 gtc
my thoughts exactly. I can't quite beleive that anyone who is able to walk and breathe at the same time can be so incredibly stupid.
I was considering voting labour. It would make sure that they were in power - with no one else to blame - while the effects of their actions over the last decade kicked in. But I'm starting to think that leaving them in power is just going to make them ever more desperate, and the results could be more disasterous than I could possibly imagine. Incompetent just doesn't fully describe this bunch of muppets.
7. Pauly_boy said...
The Government should stay out of the markets, GB and co can sod off using my taxes to support over inflated house prices!
8. gone-to-colombia said...
inbreda, Philosophically, I support left of centre politics, yet, Labour under Brown has become some kind of ghastly mutant emanation of once great and proud movement.
You suggest a kind of poisoned chalice scenario, one that Cameron is highly likely to receive. Frankly, whoever 'wins' the next election is doomed to delivering years of highly unpopular policies. Socialism is based upon the twin ideas of rights and responsibilities. I suggest that a population has right to expect a responsible and prudent government, and a party has a responsibility to deliver this. The present Labour party has failed in this covenant.
9. wiltshire said...
Inbreda @ 6, I know what you mean but the trouble with Labour getting in again is they'll probably just continue to desperately keep the whole thing afloat for ANOTHER four years.
They don't seem to have the capability of accepting any responsibility for the shocking state of the UK or any responsibility towards it's citizens.
I can never vote Tory but Labour need to lose by a landslide if they are ever to be given pause to consider how far they have strayed from the path of responsible government.