I wrote this in late 2008 and never honestly got round to emailing it to the Prime Minister:

Dear Prime Minister

If you’re not (and I don’t consider you are), completely out of touch with what really goes on in the real world, prove it!!

New Labour has proven over the past 10 years that it’s brilliant at making new laws. Your predecessor certainly broke all records in this area!

I want you to rush a new simple law through Parliament. It will positively revolutionise mortgages in the UK forever.

The following should be included:

• The mortgage we have in respect of our principal home should be at the Bank of England base rate + one half of one percent for the duration of that specific mortgage.
• Each time anyone buys their first home or moves, the Bank of England base rate on the day of completion will apply + of course, one half of one percent.
• Those with mortgage arrears will have them added to their total outstanding mortgage and their payments adjusted accordingly for the duration of their mortgage term.
• A list of maximum fees or charges allowed to be added by any Licensed Lender to any individual’s mortgage arrears should be published.
• Each household should be legally obliged to insure their mortgage against unemployment, sickness (short/long term) and death. This insurance should be initially administered by the government of the day and the premiums not exceed 8% of the annual mortgage payment.
• The percentage will be the same immaterial of age or present health.
• Payment will be collected by a new Department within the Inland Revenue by monthly direct until the Government creates a brand new Ministry to oversee this whole scheme.
• There will be 1 permissible payment date only.
• New immediate guidelines will be issued to the County Courts relating to future Repossession Orders.
• Starting immediately, every bank, building society and private lender will be obliged to offer only this type of mortgage. This will finally stop them playing around with the multitude of mortgage deals that are presently causing so much misery.
• Additionally, neither will they ever be allowed to increase their interest rates on mortgages to make larger profits at our expense nor refuse to reduce the interest rate when the Bank of England’s base rate is reduced!
• Publish a list of inclusive maximum fees each Lender is allowed is allowed to charge in respect of each mortgage.
• Determine the maximum charge that any Financial Institution is allowed to impose on any Customer whether it is for missed payments, overdraft interest, credit cards or an overdraft facility. This type of Institutional theft has been ignored for too long by a succession of governments!
• This new facility should embrace the many thousands who, rather than loose their homes, “consolidated” their debts and mortgages into one new loan or mortgage.

I believe this could work – do you?

Naturally, all licensed Lending Institutions registered in the United Kingdom would immediately discount every mortgage they own belonging to UK Citizens with 5 years residency qualifications also Registered Foreign National Key Workers in line with the new law.

No one can deny that the phenomenal increase in house prices was generated by Lenders taking advantage of a low base interest rate. This was feverishly cultivated by the unchecked and reckless lending of our Financial Institutions all of whom, it should be emphasised were in turn borrowing the money they were lending!

A low base interest rate is welcomed by all!

If Government is prepared to introduce this new law, the Lending Institutions, for the first time, would no longer be able to take advantage of the situation.

Home owners who bought during this period with a substantial deposit benefited enormously as they watched their house values soar. Even with the continuing reduction of property values, they shouldn’t complain.

The less fortunate home owners who bought during the same period with a 5% deposit and others who were tempted by 125% mortgage offers are now faced with negative equity but still live in the property they fell in love with. They would certainly welcome the proposed lower interest rate.

This law, for the first time will guarantee protection to home owners against greedy Financial Institutions and their incompetent management.

Finally, on this one: I don’t realistically consider for one moment that the Banksters will agree to a mortgage like this because they’ll no longer be able to rip us off as they do now.

Let’s nationalise the Banks

Wouldn’t this just be the ideal time for our Government to nationalise each of the main Banks?

Once we, the Tax Payers own major shares in several Banks why don’t we start breaking them up into smaller and more specialised Financial Institutions to best serve this Nation?

Let’s remove their “Jack Boots,” strip them of the power they’ve been allowed to patronisingly bestow on themselves over the past 20 years and once again create Financial Institutions with the sole aim of rebuilding our Country.

The only bonus any Banker will look forward to is the knowledge that they still have a job at the end of each of their contracted year’s employment.

If they decide to quit the country because their bonuses have vanished, then good riddance.

If the alternative is to allow them to dictate the odds to all of us, the sooner they leave the better.

Lenders’ profits, although much smaller will be assured because fewer of our Citizens will be defaulting on their mortgages.