“He needs a basic lesson in economics”
I have a comment on the Prime Ministerial pot calling the Opposition kettle economically illiterate over on Independent Voices. Help to Buy is a terrible scheme for creating credit, recycling money in the housing market to create grateful winners who might vote Conservative and disguised losers who don’t know they are losing.
As a footnote, yesterday’s No 10 news release reveals that the scheme, brought forward with such fanfare, doesn’t actually start until January. That is when the Government guarantee starts. The lenders presumably underwrite the risk if anyone completes before then:
Tagged in: economics, free market, housing
Lenders can start offering the mortgages now, and they will be guaranteed by the government from January 2014. As it usually takes a few months for borrowers to go through the mortgage completion process, this delay is not a problem for lenders. If borrowers do complete before January their mortgage will be included in the scheme.
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