Writing in the Observer today Gordon Brown dons his best building society manager suit and tie and tells the nation sternly that 100 per cent mortgages are a thing of the past.
But with the average London house price still around £350,000 where does he think first time buyers are going to get a ten or even five per cent deposit from if not their middle class parents?
What they’ll have to do is take a loan at a much higher rate than the mortgage rate or even hit their credit cards for the deposit, thereby making their position much worse from the start.
People default on mortgages because they lose their job or couldn’t afford it in the first place, in which case 90 or 95 or 100 per cent is academic.
So Brown, who some people think is just softening us up for a ‘bad bank’ bailout tomorrow (see story below) is talking through his hat as usual.
And making a bad situation worse.
One Comment
The PM’s article in The Observer, really gave me a laugh this morning. Is this the same Gordon Brown who, when he was CoE, allowed the banks & building societies to morph from safe & sound institutions into risk takers that evenutually went vitrually bankrupt? The man is shameless!