Taxpayers face being on the hook for billions of pounds’ worth of mortgages under a “generation buy” scheme being considered by the government to get young people on the housing ladder.
Boris Johnson is reported to have asked ministers to devise plans for long-term fixed-rate mortgages with a 5% deposit. This could require the government to take some of the risk from lenders through a form of state guarantee — sparking concern among mortgage experts.
Sigh. Subsidising people who shouldn’t be buying houses into buying houses is not a good idea. That they shouldn’t be buying houses is proven by the fact that, without subsidy, they can’t afford to buy a house.
Sure, economics can be complicated but sometimes it’s really damned simple.