British Politics’s Blog

The ravings of an individual, UK voter frustrated with our politicians

Posts Tagged ‘property market

HSBC increases mortgage rates in the UK

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HSBC have announced an increase in their mortgage rates to borrowers which will affect hundreds of thousands of borrowers. Now, whilst I accept that the inter bank lending rate has risen and that the banks have losses to contend with, this should be weighted against the fact that the same people that have mortgages, the tax payer, are currently accepting the increased risk brought about by the incompetence of the banks.

The Bank of England has advanced £billions of tax payers money to help prop the banks, this is not a risk free strategy and the evidence suggests that it hasn’t worked anyway. But there needs to be some form of quid pro quo, if the Bank of England is advancing the bank’s our money, then there needs to be a cap on the level of mortgage increases levied by these banks. Mortgage rate increases should be commensurate with need not greed. The simply can’t have it both ways. I would hope that the Bank of England and/or the government have sought some time of assurance from the bank’s that they won’t shaft mortgage payers in order to have a quick fix for their profits. Based on experience, I suspect this has not happened, but rest assured, a more savvy public will be watching and waiting.

Tax payer owned (not government owned as is often the way it is described), Northern Rock has indicated that it may well follow suit. Northern Rock should be setting an example for other lenders, no playing a game of me too.

Written by British Politics

25 September, 2008 at 3:42 pm

Gordon Browns own words come back to haunt him

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Over at political website Power to the People there has been analysis of some of the statements made by Gordon Brown in Labour Party Conference speeches or, as Chancellor in his budget address. Oh how, in the current climate, these words are coming back to haunt him.

Specifically, Gordon Brown, promised there would be no return to “Boom and Bust” and that he would not permit “instability, speculation or negative equity” in the property market whilst he was in charge of the UK economy. That notwithstanding, he has of course, also claimed credit for our economic growth, which I guess he can, but of course, his flawed, naive strategy allowed this to be achieved “on tick”. Surely, even a basic understanding of economics would have made clear, even to a “prudent” chancellor, that this boom would have to end (“bust”) and then, when the dust had settled, we would all be expected to repay our debts.

Gordon Brown may be prime minister now, but he cannot simply wipe away his 10 years as chancellor, during which he presided over a consumer boom financed on credit as well as a massive spending spree by the government, much of which was poorly invested. Today the Daily Mail suggested that there should be an end to Labour Party in fighting, to allow Gordon Brown to get on with the job of getting the UK economy back on track. Now here’s the thing, if Gordon Brown is so deluded, so removed from the real world that he cannot see where his policies have added to and fueled the current economic situation we are facing, how on earth can we trust him to do what is right for this country now? Maybe the tabloids are concerned that they, almost without exception, were also the very people that lauded Gordon Brown as a prudent and wise chancellor?

 

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