The Modern Impact of Sub-Prime Mortgages - 'Mortgage costs right now are terrifying'.

Read this with interest today. Many have ignored the fact that the UK have had Sub-Prime mortgages for decades and that many still are taking up such mortgages.

The people mentioned in the article have not taken on board the fact that they have taken on such types of mortgage, and that they have been given a lower introductory rate. They have also ignored that they would be paying far more when the introductory period ends. They also failed to realise that they will still have to pay back the discounted amount over the period of the mortgage meaning they will pay that much more after the introductory period. So whose fault is it that they are now struggling.

This links to an issue that I have raised before: and that is can people really afford the mortgage that they obtain. Moreover, it reflects the fact that many cannot afford to get onto the 'property ladder': it is after all a propaganda tool to get people to buy and therefore contribute to the growth of the economy under the auspices of the 'Engine of Growth' philosophy.

What successive Government's and the Mortgage Industry have told people is that they must own a house to be someone. People have been fooled - remember there is a money web site called the Motley Fool. People need to have the intelligence and competence to realise they have insufficient income to purchase a property. But then, with the demise of Council Houses, and replaced by Housing Associations, it means that accommodation of sorts is getting more and more limited, which has forced people to buy.

To summarise, the difficulties many are now facing is partly self-inflicted as they should have realised their own lack of ability to pay in the medium term, the failure of Mortgage providers to effectively communicate the medium term pitfalls currently seen, and the lack of Government regulation which should have limited the selling of sub-Prime mortgages all of which may bring this crisis to the fore in the short-term.