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Help to buy threat to the UK credit rating?
Comments
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Some would say that sensible levels of credit availability have been restored since 2007/8, after a period of unsustainability.
Those people would be wrong.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Those people would be wrong.
The Flat Earth Society still exists, believe it or not.
http://theflatearthsociety.org/forum/
They do not have a House Price or Financial segment on their forum. If they did, it might well make interesting reading!0 -
HAMISH_MCTAVISH wrote: »Neither UK residential mortgage lending defaults, nor UK residential mortgage lending standards, caused the failure of the UK banking system.
UK banks lost 15 times more on overseas mortgages than they did on UK ones.
Had it not been for those overseas misadventures, they wouldn't have needed a bailout at all.;)
IMO, this is the optimum point.
What the government should be doing for now is to restock on Local Authority properties, which can be rented at 80% of market value, and sold for a small discount in 5 years time, over HTB.
This would bring in profit for government, and mean that there isn't the potential for costly guarantees should the market fail. This would obviously assume that the properties are bought for a limited amount above cost price, and definitely on this scale below market price.
I'm very skeptical of what would happen with the HTB mortgages, should the market fail; especially as there are now no tangible assets doing things the way the government has.
CK💙💛 💔0 -
CKhalvashi wrote: »What the government should be doing for now is to restock on Local Authority properties, which can be rented at 80% of market value, and sold for a small discount in 5 years time, over HTB.
What HTB does is allow individuals to stimulate building. The buyer pays and takes (much) of the risk.
Your idea guarantees that the taxpayer will be out of pocket by building houses, subsidising the rent and then selling at a discount.
Can't see ratings agencies being enamoured with that idea either.0 -
HAMISH_MCTAVISH wrote: ».
Had it not been for those overseas misadventures, they wouldn't have needed a bailout at all.;)
Nothing to do with overtrading, e.g. NR, or bad business lending on this side of the pond?
If you securities your debt and play in a muddy pond dirt sticks."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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