‘The lesson of history is that no-one learns the lessons of history’. Did no-one tell Rishi that low interest rates, rising property prices and 95% mortgages will become a disaster waiting to happen. Interest rates will rise and property prices will fall, because they always do, probably in the not-too-distant. Then ‘negative equity’, which most of those getting 95% mortgages won’t remember, will return. And they’ll learn, as did many in the ‘90s, that it’s the lender, not the borrower, who’ll benefit from the government guarantee. Your home remains, very much, at risk.
Turmoil in the mortgage market
When I was but a youth, I was often told to enjoy myself before I had the ‘millstone of a mortgage around my neck’. It was then assumed that you’d be dragged down by it for another 25 years, a lifetime when you’re but 25 yourself.
