Why doesn't the Govt 'do' mortgages ?

[bromers2]

It does savings accounts (national savings etc) so why doesn't it do mortgages/loans - that way they could link them to the base rate and ensure that the savings are passed onto to the cutomers as intended.

Current situation of the banks not passing on the benefits is st especially after 'we' have bailed them out.

Nationalise the banking industry ?

RB

[Eric Mc]

The Irish government used to - through a system called the Small Dwellings Aquisition Loan system (SDA) I don't know if they still do. They were administered by local authorities.

[fido]

They already do via a company called Northern Rock. All this moaning about banks not passing on rates etc. is just for public consumption - ask yourself this - would you lend to someone using your personal capital who wanted to buy a house with less than a sizeable deposit i.e. 75%? Thought not.

[SirTainly]

I'd prefer to see Carlsberg do mortgages

[esselte]

fido said:

They already do via a company called Northern Rock. All this moaning about banks not passing on rates etc. is just for public consumption - ask yourself this - would you lend to someone using your personal capital who wanted to buy a house with less than a sizeable deposit i.e. 75%? Thought not.

Would this be the capital given to me by those very scoundrels wanting to borrow it?

[hugoagogo]

German government own KfW, which does partial mortgages at cheap rates (and other development type loans)
started after ww2 under the marshall plan for rebuilding the country

they managed to transfer €300 million to Lehman Bros on the very day that they filed for bankruptcy

[Mat Hammond]

Quote: It does savings accounts (national savings etc) so why doesn't it do mortgages/loans - that way they could link them to the base rate and ensure that the savings are passed onto to the cutomers as intended.


Thats what Tracker deals are for.....

Edited by Mat Hammond on Friday 7th November 13:56

[esselte]

Mat Hammond said:

Quote: It does savings accounts (national savings etc) so why doesn't it do mortgages/loans - that way they could link them to the base rate and ensure that the savings are passed onto to the cutomers as intended.


Thats what Tracker deals are for.....

Edited by Mat Hammond on Friday 7th November 13:56

Who's doing those at the mo'?

[muley]

Some years ago (1974 to be precise) we did get a local government mortgage.

It was a bit of luck for us as banks and building societies were not dishing out mortages at the time.
APR was about 12% IIRC. It was for £8000 for our 3 bed semi. Paid off now

[dmitsi]

Why would they want you to give such savings. We live in a society founded on debt, they perpetuate this and always will. If we didn't have debt then people would stop working. Not very good for the government.

[Mst007]

The banks control the money supply, as I understand it. Therefore the bankers and their associates can reap the benefits of profit from lending. This will likely not be changed in our lifetime.