Mortgage Adjustments

The reduction in the availability of mortgage products could not have been predicted, but the moves subsequently installed are not particularly surprising. It is a fascinating concept that by reducing the amount of mortgage loan to around a maximum of 75%, potential borrowers have to raise something like £40,000 as a deposit. Most will not have this as savings. One possible way forward would be to borrow £40,000 through a bank loan. Doubtless a higher rate would be demanded. The 'cash-strapped' banks are behaving predictably. Inter-bank lending has been virtually terminated, not because of doubts about being repaid, but because there is nothing to lend. The empty vaults have been revealed and the virtual money illusion is becoming all too transparent. Not yet totally in the spotlight though moving nearer towards it every day. The banks through ineptness and greed are attempting to punish the client base for their own folly and the rather dubious benefit from the property ladder is promoted.