Reading the excitement about the Governments new scheme to enable homebuyers to have a 95% or even 100% mortgages shows just how eager people are to see the housing market get reinvigorated and that the trades of building etc could really invigorate the economy. However, I have an alarm bell going off in my head, haven’t we been here before? How did we get into this economic crisis in the first place?
We must remember that we got into this mess initially due to dodgy lending in the housing market. Subsequently we have been chastised by the Government for having too much personal debt.
So is this really a good thing, or are we just going to fall back to where we were?