Youngsters should not be discouraged from buying homes
Share
The benefits of buying rather than renting a home are that costs are stabilised in the long term and outgoings are significantly reduced in later life, when income is often smaller.
A person approaching retirement now is likely to be paying 10 times more in rent than they would be for a mature mortgage, so logically we should all be encouraged to buy as early in life as possible and arrange adequate financial protection in case things go wrong.
The clumsy proposals made by the FSA in its consultation paper are likely to have the opposite effect and are aimed at the wrong target as usual.
It’s rather like a consumer going to a police station to ask for mortgage advice - except the police would not be daft enough to try and give it.
RICHARD JOHNSON
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
