MPs slam 'horrendous' mortgage guarantee scheme

According to a report by the Treasury Select Committee, the proposals made the government an “active player” in the mortgage market for the foreseeable future. The report described the guarantee scheme as good politics but “horrendous” economics. “The government is encouraging people to leverage themselves up to the hilt in order to buy what is already likely to be overpriced property and, as a result of this policy, is likely to become still more so. “This is irresponsible enough. But worse, the government will probably now find itself permanently using its balance sheet to suppor...