Sep 12 2007
11th September - Mortgage collapse in the UK
(Blog posting that went missing yesterday)
The government tells us that mortgage regulation is a good idea, and works well in the UK.
Perhaps they can explain then why Victoria Mortgage Funding has been placed in administration? This was reported this morning as the first UK casualty of the credit crunch and the sub prime crisis. Are the government saying there will be no more such problems as their regulation will make sure loans only go to people who can afford them in all conditions?
Ministers would be wise to see that the mortgage reposession rate is rising in the UK, and to understand that just as low interest rates in the US led to some people obtaining large mortgages which they cannot now repay or service, so the same happened here. It didn’t make any difference that the Uk introduced mortgage regulation.
The truth is the government has helped create a boom and bust in the credit markets which is having an impact on the availability of mortgages and on the balance sheet strength and profitability of credit institutions.
John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College...
JR:
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There was another post that went missing recently regarding the McCanns. Why is there mention of the deletion on your weblog? Are you perhaps hoping to sweep the matter quietly under the rug?
I removed it because it was being foolishly misrepresented by some in the media.
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Mr Redwood:
1) Can you please include some notation in your comment that you have added to mine… just so people know for sure that it comes from you and not me? Of course, you could alternatively respond to my comment with a comment of your own; this, after all, is the way most comment-based conversations are conducted.
2) I didn’t ask why you removed it… I asked why you removed it without explanation.
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