In order to pave the way for economic surrender, Gordon Brown has been a big supporter of fixed rate mortgages. From a House of Commons debate, Monday, 9 June 2003.
Because Britain has had a different system of housing finance—just 7 per cent. of mortgages in the UK are at long-term fixed rates—we are learning the lessons from other countries where, for example in America, they securitise long-term fixed rate mortgages, and an independent review is now examining the structure of mortgage finance including the case for, and how we can help the development of, the long-term fixed rate mortgage market in the UK.Well, the best laid plans can go wrong.
Banks and building societies pulled many fixed-rate mortgage deals off the market yesterday, denying borrowers the chance to avoid the Bank of England's next increase in interest rates.You see, Mr Brown, businesses will only play along, if they can make money. You plans to make the housing market more stable, will not work unless you make fundamental changes (planning consent).
I know that the chance of us joining the Euro is history anyway, but its still nice to see that Gordon's preparation for it is coming unstuck.