Monday, 20 October 2008

Homeowners to get support

The government have said that homeowners will get support to make sure they are not repossessed.

A feeling of deja vu came over me as I started to write this post. Ah here it is a post from the 23rd April 2008 saying the same thing.

So maybe this is an announcement every 6 months that homeowners should be given support, not spelling the support out and leaving it there.

The government knows that if they do not allow lenders to repossess as per the terms and conditions of the mortgage account, then the lenders will increase the risk rating of the mortgage lending and reduce even further the acceptable number of borrowers for mortgage lending.

If the government wants to help, they should allocate money to allow the housing associations first refusal on repossessions and allow the homeowners to become tenants. At what cost? Does it really matter any more? The government is spending money from budgets years ahead and borrowing the rest.

After all the biggest repo bank is Gordon Brown's Northern Rock.

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