London, UK (PRWEB) October 13, 2008
The current Government plan to end the financial crisis is a sticking-plaster solution that has no staying power. Bailing out banks with part-nationalisation and special liquidity to allow them to lend is just postponing inevitable fallout from the personal debt crisis being faced by consumers in the UK. Consumer champion website Mortgages.co.uk is petitioning the Government to help home owners, not just banks.
Barry Summers, Director of Mortgages.co.uk, says: "In order to help end the financial crisis, Government needs to offer protection to borrowers, rather than just bail out the banks. Mortgages.co.uk proposal is for Government to offer financial assistance to home owners, taking an equity stake in property where necessary to help the people that need it most. Rather than hundreds of billions of pounds worth of banking debt being guaranteed by the treasury, the Government should guarantee a similar level to replace mortgage debt."
How would this help the country? Barry continued: "At Mortgages.co.uk we feel that swapping homeowner debt for equity would help solve the financial crisis by reducing consumer mortgage debt and giving qualifying borrowers a much needed breathing space. Potential arrears, repossessions and negative equity levels would reduce significantly. The burden on employers would simultaneously shrink, as would unemployment levels. Furthermore, we would see a return of liquidity to the banks through Government investment/repayment of borrowing, thereby unlocking the frozen markets. Maximum lending criteria would be fixed, and irresponsible lending would be history. Furthermore, a cap on banking executive salaries is a much needed piece of legislation that needs to happen now. With consumers able to breathe again and liquidity back in the market, inflation would also be kept under control."
Mortgages.co.uk calls for the government to recognise that now is the time to act to protect homeowners in favour of the consumer to solve the financial crisis. Bailing out corporate interests merely prolongs an inevitable collapse and recession. Over the medium to long-term, the Government holding housing equity will provide good value for the tax payer. Giving UK banks the ability to extend credit lines does not provide the assistance that consumers need. Our petition can be viewed at: