This proposal will:

• Stop a repeat of the 2008 housing crisis.
• Stop the UK economy falling off a cliff that will take years to recover from.
• NOT burden the taxpayer.

Stopping Coronavirus is sending our economy into recession and will set off a dangerous chain of events resulting in a depression and mass unemployment. This will ruin more people's lives than the virus itself.

The Chancellor's three month emergency bail out is an expensive sticking plaster for the taxpayer to pay. It is short term and won’t fix the personal debt problem left over when the economy is switched back on.

We need a much bigger and cheaper solution.

SECURED BORROWINGS ARE THE REAL PROBLEM 

Secured borrowings, such as mortgages and loans, touch the vast majority of businesses and individuals in the UK, underpinning the whole economy. 

UNLESS WE ALL TAKE ACTION NOW THE FOLLOWING WILL HAPPEN

1. Government intervention to slow Coronavirus will continue to choke the economy, causing people to lose their income and jobs, creating a recession.
2. When people can't make their repayments, banks repossess the asset, making people homeless and ruining lives.
3. The banks have to sell the assets on quickly at a discount to recover some of their losses, causing a further collapse in property prices and a further housing crisis for the Government to fix.

This affects all of us, and if you have borrowings or a mortgage then this affects you directly.

THE BIG SOLUTION 

Like he has done for wages, we require the Chancellor to step up and immediately underwrite interest payments for a minimum of 18 months on all UK secured debt, creating a repayment holiday, allowing the economy time to recover and keeping people in their homes.

HOW IT WORKS

1. The Government will take over paying your mortgage for 18 months. This is far cheaper for the Government than having to pay to re-house you if you are made homeless and bailing out the banks, again.

2. By paying your mortgage for you for 18 months, the Government will protect homes and business assets from repossession and will keep the banks working properly.

3. What the Government pays on your behalf as interest to the banks will be secured as a second mortgage over the asset.

4. This Government loan to you will get repaid from either remortgaging or when you sell the property once normality returns to the market, there will be no time limit on this repayment.

5. Printing money for this purpose will not cause inflation. 

6. The Government will take these funds out of circulation once repaid.

7. There is no cost to this for the British taxpayer. The money to pay for this is not borrowed from the market but created by the Bank of England, and eventually gets repaid back to the Bank of England.

WORKING EXAMPLE:

• You currently have a mortgage of £100,000 at 3% interest a year.
  The government makes this interest payment to the bank on your behalf for 18 months which is £4,500.
• If you sell the property or when you remortgage the property in the future £100,000 is repaid to the bank and the £4,500 is paid back to the Government.
• In effect you get an 18 month mortgage holiday while the economy recovers and you will have then saved money to spend in shops when this eventually ends.

Sign this petition to ensure the Chancellor hears our voice to

       “Do whatever it takes” 

Pass this on urgently to all you know to sign via Instagram, Facebook, Whatsapp or email. THIS BENEFITS EVERYONE not just those with secured borrowings. We need 10,000 signatures now for the Chancellor to hear us and 100,000 signatures for a debate in parliament.