Mortgages Uncovered

Well, I daresay you’ve already heard much about it, it’s been in the news, on the television, radio, internet and every other medium going.  I don’t even watch that much television but even I’ve seen it three times, heard it umpteen times and am sick of it already.

The Bank of England is in negotiations today with the likes of the Halifax and the Nationwide to discuss providing £50 billion to help ease the mortgage crisis.  Originally, it was thought the money would be on offer in exchange for high quality mortgages but there has also been talk of lower quality mortgages and even credit card debts, which is pretty risky to be using taxpayers money in my opinion.

In return, the Bank of England wants the mortgage lenders to ‘go easy’ on those struggling with their mortgage repayments and to make sure their product’s interest rates follow the Bank of Englands interest rate changes.

Personally, I think they’re messing with natural market forces and should let it be.  Of course, you’re going to say that I obviously am not struggling with my own mortgage payments and don’t understand, etc etc but then again, I didn’t take on more debt than I could afford for the sake of getting my foot on the property ladder.  If people don’t understand what they’re doing, then they should be in rented.  This mortgage crisis is the only way to correct the market and the government is playing with fire.  But that’s just my opinion.