Mortgages are back
OK, so mortgages never went away but the crazy deals that almost brought the world to its knees are back on the market. Lloyds TSB have just released a 95% ‘loan to value’ mortgage, for first time buyers. The only proviso being that family members must find 20% of the value of the property which sits in a bank account, the people despositing the money would make regular 3.5% interest on it and this money held for as long as the mortgage runs.
High value mortgages (and irresponsible lending between banks) led us where we are now, do we really want to go back to this? Mortgage approvals are up in the last month or so and with interest rates still at their lowest for ages lenders are looking to raise their profits up after the losses that have been felt by everyone in the finance sector. This is where the government and IFA need to step in and legislate and regulate like they are meant to.
We were assured that the UK would never return to the problems of 2008, are we falling back into the bad practices that lost the UK billions? As we now know what one company does effects others and the public, the government will bail out companies who hold mortgages for the public so this effects us all. Private companies with boards, share holders and giant profits cant be let alone a free market if they expect to be bailed out with public money…