Government Mortgages

buck2001

The government should withhold the taxpayers money they are earmarking for greedy bankers who refuse to pass on the governments and Bank of Englands rate decreases to their customers.
The £50 billion should instead be used to provide us, the people of the UK, with government funded mortgages at approx 3-4% that will remain stable and static for the life of the mortgage. This would send a clear message to the greedy bankers and would alleviate mortgage woes whilst providing a stable mortgage for the people and a steady income for government.
Please visit the goverment petition site here -
http://petitions.pm.gov.uk/Gov-Mortgage/
and sign the petition.

You know it makes sense!

Dan_Collins_2

50 billion would not touch the sides, the government could not afford to do that.

I think the only way to show the banks is to fight them as a nation, but we are too british for that!

ManAtHome

Sounds like a good idea - throw taxpayer's money at the housing market... Banks do a bit more than mortgages you know - why should we prioritise greedy speculators over genuine businesses?

dunstonh

The £50 billion should instead be used to provide us, the people of the UK, with government funded mortgages at approx 3-4%

Yes, the taxpayer is going to so be much better served lending money below base rate to people rather than at base + to the banks.;)

The government should withhold the taxpayers money they are earmarking for greedy bankers who refuse to pass on the governments and Bank of Englands rate decreases to their customers.

BoE rate trackers have passed it on. However, your lending has to track that rate the BoE rate to get the advantage (or disadvantage when it goes back up again). If it tracks LIBOR then why should they follow the BoE rate?

BTW, the suggestion would breach EU law so its a non starter even if it was a feasible suggestion.

Treadmill

Why not just make all property ownership illegal other than by the government who would give us all a free house....

maveli

I think in Australia the interest they pay for mortgage is tax exempted. I think that's what we need here with some control.

dunstonh

maveli wrote: »

I think in Australia the interest they pay for mortgage is tax exempted. I think that's what we need here with some control.

We had that in the UK before. It was called MIRAS and it helped fuel the last house price boom (which ended in a crash). Do we really need another attempt to push house prices up?

MissMoneypenny

maveli wrote: »

I think in Australia the interest they pay for mortgage is tax exempted. I think that's what we need here with some control.

I think it is only on the original loan.

dzug1

maveli wrote: »

I think in Australia the interest they pay for mortgage is tax exempted.

I hate to inform you it isn't - and they have recently turned down a proposal to make it so.

The main effect of it (where there is a shortage of housing) is to make house prices that little bit more expensive. It makes you able to pay that little bit more, so you do.

mr_fishbulb

buck2001 wrote: »

The government should withhold the taxpayers money they are earmarking for greedy bankers who refuse to pass on the governments and Bank of Englands rate decreases to their customers.
The £50 billion should instead be used to provide us, the people of the UK, with government funded mortgages at approx 3-4% that will remain stable and static for the life of the mortgage. This would send a clear message to the greedy bankers and would alleviate mortgage woes whilst providing a stable mortgage for the people and a steady income for government.
Please visit the goverment petition site here -
http://petitions.pm.gov.uk/Gov-Mortgage/
and sign the petition.

You know it makes sense!

It will artificially allow the prices to continue to increase and then you will get into the same situation in a few years time where 3-4% is too much and people will be demanding 1-2% mortgages from the government.

toonfish

what an utterly stupid idea - £50bn would allow a tiny handful of folk to buy a property at the expense of everyone else wo is paying market rates.

It would be better spent building low cost housing.