Councils Should Help Homeowners

Councils Should Help Homeowners

Local councils should offer financial support to homeowners threatened by the credit crunch according to The New Local Government Network.  A report by the independent think-tank recommends local authorities should adopt US-style mortgage support plans that offer below market rate, whole or partial mortgages to either stave off repossession, prevent remortgages difficulties or support local first-time buyers.  

Under the scheme, councils would be able to borrow money under prudential borrowing rules and offer support to a select group of people, such as first-time buyers or people involved in mortgage difficulties.

Our view

Well there is logic, more tax-payers money down the drain.  If people enter into contracts to acquire assets, they should pay themselves.  If they have borrowed too much then and cannot afford repayments when interest rates are higher, we are sorry but tough, your greed and poor advice took over when you bought.

If people have fallen ill or been made redundant then there was and is more than an adequate supply of sickness and redundancy insurance that could have helped.

There is no real excuse for people getting into financial difficulty other than poor advice or greed on their own part.  Tax-payers should not help.

That said, none of this will make you feel any better if you are in difficulty.  If you are please contact us and we help you.

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