The generousity of the UK government is almost limitless. Not content with trying to prop up the UK housing market, state owned banks are now offering cheap credit to support the Irish housing market.
Don't misunderstand me; I like Ireland, and I wish the country well. But they chose to leave the United Kingdom back in 1921. The relationship is over; the UK government should not be supporting the Irish economy. From today's Times....
Banks controlled by British taxpayers are offering mortgages to first-time buyers in the Irish Republic at half the rate that they are available in the UK. Halifax, part of the Lloyds Banking Group, is charging 2.74 per cent for a two-year fixed-rate deal to first-time buyers in Dublin. A five-year fixed-rate deal would cost borrowers in its home town of Edinburgh 6.14 per cent.Royal Bank of Scotland (RBS) is charging 2.95 per cent for a new mortgage in Ireland; in the UK, it charges 5.99 per cent for a similar product.
Matthew Elliott, chief executive of TaxPayers' Alliance, a lobby group, said: “It seems bizarre and unfair that Halifax and RBS, which have in effect been propped up by British taxpayers, are offering worse deals to British customers than those elsewhere.” British taxpayers have spent more than £60 billion bailing out RBS and Lloyds Banking Group, leaving the Government with a controlling stake in each.
(Thanks to suzukiscooter for the email and the tip)