As CNBC report today U.K. borrowers are facing a mortgage crisis that could damage the economy as rising housing costs hit deal renewals and the number of products available shrinks.
Martin Stewart, director of mortgage advisory London Money said: “The market is dysfunctional and arguably broken. We have seen evidence where advisers are in queues alongside 2,000 others all trying to secure something that might not actually exist by the time they get to the front of the queue.”
Speaking to BBC Radio 4’s Today show, HSBC boss Ian Stuart said his bank believes “rates will probably increase a little bit more and will probably stay a little bit higher for longer” – and will not start to fall significantly “until inflation is much lower than it is today”.
Housing Secretary Michael Gove stressed that, although options were under review, he believed subsidies for home loans would only add to inflation and damage the economy.
He told the BBC: ‘If you spend public money in order to deal with particular crises, you are inevitably adding to the stock of debt and if you add to the stock of debt, that puts pressure on interest rates.’
Mortgage crisis
So our insane property market problems have made is across the pond but how are the papers in the UK responding?
Well, the Telegraph’s case study is really so far beyond anyone normal’s issues that it is comical.
One Twitter user picked up on it and it got people chatting.
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Not a bad idea?
Related: Watch: Why is shocking govt report getting little coverage?
