PM unveils escape plan for familes facing repossesion
The news story of the day appears to be that Gordon Brown is set to offer public money to assist families facing respossesion of their home, press figures we citing that ‘up to 75,000′ familes were in this bracket but we can take this with a grain of salt! The government scheme means that the public money will be used to pay any mortgage in danger of default, giving hard up familes a ‘mortgage breather’. £1 billion of public money has been earmarked for this bail out, which can be put into effect for properties worth £400,000 and less (so most people then!).
The US has seen millions of repossesions in the last few months and this will be a problem as long as negative equity caused by buying overpriced property and the collapse of the mortgage market.
The pound has been falling with respect to the Euro, and you cant get much more that 1.1 for the pound, this is fairly disasterous for companies who regularly buy overseas products or anyone planning a holiday. There are even those people who have speculated that this is a deliberate plan by the PM to push the UK towards joining the EU on a full basis…
Gordon Brown is not looking too clever especially after going back on his plans for changing tax for low paid workers.