The system of providing mortgages has not change since the first one was provided by provision of the first bank note that said ” Pay The Bearer On Demand ” this was not a guarantee but a credit note and so the lending of money had really begun in ernest.
As years progressed from full endowment mortgages through to low cost whereby not the whole amount was invested for the benefit of the client but only a portion of around 30% meaning a greater reliance on investment and interest rates being good enough to pay off their mortgage borrowing. But as we all know this was not the case and people were dupped into cashing in their policies by unscrupulous salesmen and very few ever came to maturity.
Instead the emphasis was based on profit and people got forgotten into the bargain and the banks became all powerful and able to build their own investment products and sell by branding them under various hedge funds, the people were blind to the truth until now.
Even though politicians make promise after promise to protect the people by putting in place tigher and tigher controls, but always leaving a hole to slip through for their friends. in the end the people pay and the rich get ever richer and we have to just grin and bear it, for now.
More soon on how to beat the banks at their own game.
Read the Article at HuffingtonPost