Mortgage scheme a waste of money

I CANNOT believe that Hastings Borough Council (HBC) and up to 30 more councils around UK are about to give Lloyds-TSB anything from £1 million upwards, some councils are giving £5 million of funds to supposedly help first-time buyers to get a mortgage.

The LAMS as its called, will give the bank £1 million out of its HBC budget to supposedly help people to get a first-time mortgage. That money could have been used to secure the 40 jobs that the council has now decided that it cannot afford, how many of them will now be forced to default on mortgages etc?

Instead they will give the bank this money for a period of five years. At a time when a weak UK housing market is contributing to the problems, banks are functionally bust and do not hold the money to cover if the mortgages they hold now go bad.

I think that, like Chichester District Council has stated, it does not target those most in need nor make the best use of funds. To think that the council is talking about losing funding of £1.7 million while it hands over £1 million to the bank, the mind just cannot comprehend the stupidity of some councils all over the UK.


Mount Pleasant Road