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Stephen Pollard

ByStephen Pollard, Stephen Pollard

Opinion

Here, take my money; there's a big pit for you to throw it into

September 2, 2008 24:00
1 min read

Jim Pickard points out the fundamental flaw in the latest Brown wheeze to throw good money after bad:

Everyone knows that 125 per cent mortgages (Northern Rock et al) were a dreadful, top of the market idea. Most realise that 100 per cent mortgages are also a bad idea. Because a home-owner has no equity in his house, any fall in prices leaves him - immediately - in negative equity.