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Ban on 100% deals is ridiculous idea

Oh dear, Labour’s latest hair-brained solution to save us from ourselves appears to be outlawing the 100% LTV mortgage for good. And, apparently, Gordon Brown’s asked the Financial Services Authority to come up with how to do it.

As they rotate the brain cell they share between them, let’s hope that when the music stops it’s reached someone who understands the system.

I know that we’re up to our necks in guano with lenders applying the same techniques seen at horse-racing events, with the display of odds and bets on tote boards, to mortgage affordability.

But permanently banning 100% mortgages isn’t the solution. Not only will it fail to stop idiocy, it will also penalise the sensible and innocent and harm consumers.

The 100% mortgage isn’t the problem. There are thousands of home owners who wouldn’t be on the property ladder at all if it weren’t for such loans. And of these, a huge proportion have never missed a mortgage payment.

It’s not the product that’s the problem, it’s the imbeciles who administer it.

But its typical of our government to, again, blunder into an area it knows nothing about, thrash about like a drowning man clutching at straws and then come up with the wrong solution.

Has the Home Information Packs fiasco taught it nothing? Don’t throw the baby out with the bathwater Brown – just pat it dry and talcum it a bit.

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