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Backed by government guarantee, borrowers would be able to get lower interest loans from mortgage lenders, ot extend their existing mortgages, to enable them to refurb their homes, The government would then leave it to the market to promote such deals to potential customers.
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Some lenders, for example, are guaranteeing borrowers a flat rate for closing costs, thereby eliminating the potential for "sticker shock" when the borrower is confronted at the closing with a dozen or so separate charges.
Wonga, which guarantees borrowers will receive their money within 15 minutes of approval, said 10 times more customers had taken out loans via their mobile phones in 2011 and nearly 1,000 people were downloading a Wonga iPhone app every day.
As we read in this piece from the Telegraph, UK predatory loan terrorist Bradford & Bingley, who only last year was making "120%" mortgage loans guaranteeing borrowers that they would be in negative equity or "upside down" even before the ink dried on their contracts, is being recapitalized after the planned-disaster that was its comeuppance.
The sales pitch amounted to a money-back guarantee: If borrowers defaulted, the companies promised to repay the investors.
In this economy, there's no guarantee that borrowers will find work immediately after graduation.
The companies also collected fees in exchange for guaranteeing that borrowers would repay other home loans.
However, the Treasury is pressing ahead with its Help to Buy scheme, which will offer taxpayer-backed mortgage guarantees to borrowers who can only raise a small deposit.
Books were cooked to obtain TARP proceeds, and banks made fraudulent loan guarantees to borrowers after promising that their deals had the blessings of Treasury.
Ostensibly, that premium (and sometimes assorted fees) reflects the cost of guaranteeing the borrower clear ownership of a property.
guaranteeing a borrower's debts.
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CEO of Professional Science Editing for Scientists @ prosciediting.com