Question

1. Gordon Brown, What proposals will you put in place for those homeowners who are now in negative equity? Having bought just 4 1/2 years ago with a 105% mortage I currently expect that with the steep fall in house values we are in, or very close to, negative equity. I read that you are advising lenders not to give out mortgages over 85%ltv. Currently when we come off our fixed rate in October we would not be able to remortage - ok when svr are low - we will actually save money! 
   However what happens when rates start to rise again, I assume they will raise sooner and faster than house prices. We will not be able to get a competitive mortage rate because of the high ltv we have. This could utlimately lead to financial difficulty. We have a good household income and have never defaulted on any payments. What is the government going to do to ensure those with high ltv can find good rates and avoid financial difficulties because banks now see us as high risk (with the governments backing) We are not high risk as can be seen from credit history. 100% mortagages do have a place in the recovery of the economy. Those who they are allocated to just need to be scrutinised more than they previously where with maybe some guaantee given from the government.
   Asked by adenby on Feb 24 2009 8:44:04 PM and supported by 14 members
2. 14