Comment by CraigJPerry
3 years ago
What does the UK govt have to do with this? Surely it’s just a matter for a bank to choose to offer this product.
I was so intrigued i read TFA… turns out this is an entire article conjured out of an off hand comment in a far larger conversation that wasn’t about this topic:
Boris: blah blah blah Reporter: blah blah Boris: blah blah blah Reporter: would that include multi generational mortgages? Boris: yes, i’m open to any ideas Reporter: back to unlrelated blah blah
No wonder journalism gets a bad rap.
I wonder sometimes whether interactions like these are set-ups and about plausible deniability when assessing the potential popularity of a new policy.
In this scenario, the government gets to say - “ahhhh…it was just an offhand comment”, whilst checking whether it moves the needle for a demographic now quite hostile to the Conservative party.
Also - not really journalism, but some form of propaganda. The owner/editor of this paper is a big supporter of Boris Johnson and was made a lord for his efforts.
To which extent, I also sometimes wonder if this is how a population is softened up to bad policies: firstly it’s trailed as an outside possibility, before it’s progressively brought in from the cold, such that when it lands there is little emotional pushback, just resigned acceptance.
You are probably right.
There are several governments known to operate this way. Vietnam is a notable example. They always drop some feelers before enacting policy.
> What does the UK govt have to do with this?
They're the ultimate regulator of the mortgage market - as with most nations with elaborate financial systems these days - and will decide what mortgage products may be offered to consumers or not.
Boris used to be a journalist, don't forget. It's funny how some of these 'off the cuff' remarks end up becoming Govt policy sooner or later. Like when stuff is leaked weeks before any official announcement as a way of softening the eventual blow.
I believe 40y is presently the maximum allowed by the regulator, and there are probably more stringent checks or other requirements to meet the longer it is, evidenced by the relative abundance of lenders offering 25/30y terms vs. 35/40.