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  • The British panic

    http://www.dailymail.co.uk/news/arti...mortgages.html
    Mike

  • #2
    Re: The British panic

    government guarantees on mortgages... nice win/win for banks! they can hand out mortgages to people who shouldn't have them, without running any risk!

    The same is done in the Netherlands for guaranteeing up to €265000 on mortgages that are capped at €350000. Free money for the banks! The main 'problem' is that they have serious problems financing these mortgages, as international investors are not happy to invest into mortgages with a LTV of higher than 80% (Basel III requirements), and Dutch mortgages go all the way up to 106% LTV (gee I wonder if that could go wrong!).

    Canada and the US offer similar guarantee schemes, afaik.
    engineer with little (or even no) economic insight

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