Credit Crunch!!

[bubba28]

My mate came up with the idea that if the government guaranteed mortgages, that it would get people spending again. For example if they guarantee a mortgage for a first time buyer they would be buying furniture and decorating etc and in turn more people would be buying and selling, which would get thing moving again. Would this be a good or bad idea?

[CheekyChops]

What do you mean by guarantee? The government would guarantee that first time buyers will be able to get a mortgage or that they guarantee to pay for it if the first time buyer can't afford?

Either way I don't think that it is a good idea.

[cassa333]

Unworkable I would have thought.

Otherwise you could get a morgage, default on it on purpose and then get the government to pay it.

Even if you ment that all first time buyers were guaranteed a morgage it would still not work as a first time buyer on minimum wage couldn't afford a shoe box let alone a property.

[R1Geezer]

If the governement guarenteed you could get a mortgage, we'd have the sub prime problem all over again except the egg on face would be the goverenment/taxpayer rather than the banks. Interesting idea and it'd probably work if no one ever welshed on paying.

[rinkytink]

Hmmm....not such a ridiculous idea after all....

http://www.money.co.uk/article/1002488-governm ent-to-guarantee-mortgage-lending.htm