This week’s comments come in response to the article: Who do brokers blame for mortgage crisis? ‒ analysis
John Azopardi said: “The more the media report on this – the better. The quiet emergency that has been growing in the mortgage market for the last year is now devastating for many borrowers.
“What is the government doing? Surely, it’s not beyond their wit to devise a system, administered by the lenders, where specific borrowers get assistance with emergency tax relief on payments for a specified, reviewable, period of time. They did it on energy – why not mortgages?”
Arron190 responded: “Sadly, because they need people to have less money in their pockets to combat inflation. If the government gives them money (our money) then it will simply perpetuate the problem.
“We had the good times during lockdown and now comes the hangover. It is a shame everyone was not complaining three years ago.”
‘The Bank of England is the culprit’
Arron190 continued: “The Bank of England is the culprit for most of it. Firstly, it failed to deal with liability-driven investment despite repeated warnings for 14 years they would be an issue if base rate rose. It had to spend £50bn to fix the problem but managed to blame Truss, even though the bail out was before the budget.
“Secondly, it did not realise basic economics that printing money causes inflation and so printed £895bn for Covid.”
Arron190 noted: “Thirdly, it instead reduced interest rates to 0.5 per cent instead of raising them. Fourthly, it then took until 21 December to start increasing rates despite inflation rocketing in the preceding months, but managed to blame the Ukraine war that started February 2022.
“Fifthly, 13 rate rises and inflation is still not falling is akin to the definition of madness, but the Bank of England still does it anyway.
“Sixthly, it does not realise base rate rises have a modest effect on inflation, over half of homes are owned outright; and only seven per cent of mortgages due to renew this year.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.