Monday, 20 September 2010

Is mortgage benefit justified?

This morning's Coalition Cuts story on the BBC was the planned reduction in mortgage support payments. Apparently there is a risk that some people won't be able to meet the shortfall, and will have to foreclose.

Though unfortunate for the people involved, this has to be good news for the housing market. More foreclosures should mean falling prices, and the market is currently ridiculously overpriced.

In any case, nobody should be forced to subsidise someone else's mortgage. It's especially galling for people like me, who are still renting, and unable to afford to buy. I'd prefer to keep my money, and put it towards my own mortgage, thank you very much.

Tellingly, the segment also featured a representative from a mortgage lenders association, who seemed quite concerned that the government might stop padding out their profits with taxpayers' money.

I'll post an update if the story shows up on

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