Whilst there are parallels there are differences.
Around 50% or more of a purchase price of a house in the UK is represented by land and because development land is scarce and we have a housing shortage of 10.5 million houses, the conditions that applied to America do not apply here.
The US Sub Prime mortgages were sold to anyone that was alive and breathing but under “Help to Buy” that will not be the case either.
My concern is that people will not insure their mortgages and may lose their jobs because the UK economy is still fragile.
UK banks and building societies need a dose of competition to shake them up, not more public money from the Chancellor.
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