Mig The Vis New Weapon Of Choice?

[siskin]

Mortgage indemnity guarantees look to be the new front the VIs have opened up in the battle to keep house prices up and make sure the taxpayer takes the risks.

A Scottish housebuilding firm Stewart Milne have been ramping this idea in two Scottish broadsheets the Herald and the Scotsman. today

They've clearly got Scottish Labour onside already with their First Foot scheme.

And, this just after we've had Lloyds and various councils getting into bed with council taxpayers money last week.

No longer able to rely on luring FTBs into debt at the risk courtesy of the Bank of mum and dad the VIs are after more of our money to keep their bubble inflated. :angry:

This from mortgage strategy 'brings the great and good of the industry together' to discuss financing for their ponzi scheme. There are some choice snippets

subprime wasn't all bad etc.

Here they are on MIG. They say themselves it's risky as hell so lets pass that risk on the buyer their parents or better yet the governemnt that means us of course not Osborne, Dave and Grant.

ARE MORTGAGE INDEMNITY GUARANTEES A VIABLE WAY OF HELPING LENDERS PROVIDE HIGH LTV DEALS?

Copland: There was a lot of talk of MIGs recently and the problem wasn’t the MIG but the capital requirements.

Jon Round: When you look at the losses some MIG providers have made it is not surprising there are so few around currently.

Malone: Someone has to pay for it so first-time buyers will have to. In the late 1990s Abbey’s MIG kicked in at 90% LTV and charged around 8%. Brokers were up in arms about it for years.

Round: That high MIG premium was on top of standard rates but today’s high rates for 90% LTV deals would make it even more expensive.

Malone: But we are talking about something different when we refer to MIGs because the average property price now is £160,000 com-pared to around £50,000 in the 1990s. Suddenly the first-time buyer or the parents have to find even more money so there is a cost ele-ment to all this.

Cliff: In terms of developing a MIG, the old version and structure of of it wouldn’t really work. But there are things that lenders and builders can do that may or may not be helped by government intervention and might be able to bring a new version of it to the marketplace. It’s definitely something we see merit in.

Is it time to start visiting and writing to our MPs and councillors to tell them do this and you lose my vote? or should we just get our passports out the drawer and go?