Guardian - Gov't set to underwrite second stepper mortgages

Turnbull2000

http://www.guardian.co.uk/money/2013/mar/12/newbuy-mortgage-underwriting-scheme-expanded

Ministers are planning to extend a government offer to underwrite mortgages for people struggling to buy a home from first-time buyers to so-called "second steppers", as part of a concerted plan to get the housing market moving again.


The move comes amid growing evidence that a new bottleneck has emerged in the housing market with people looking to buy their second homes trapped in negative equity or struggling to raise a big enough deposit.

Graham_Devon

Theres already a thread about this.

And I'd like to point out that even an estate agent has stated that this isn't helping second steppers, it's simply offering them more debt, but extending the period (and therefore the cost) of maintaining the debt.

DaddyBear

This is what happens when you don't allow a system to reset to its natural level. It becomes totally dysfunctional.