So you are unhappy that the market isn't giving mortgage loans to people with bad credit. Thus you use the government to influence the market to give loans to people they otherwise wouldn't have. Then you are shocked when people are unable to pay their loans off?
What the fuck? Are you serious? What the fucking hell did you think was going to happen?
This is like goon logic: "The only reason the market denied loans to some people is because of RACISM!!! The market cares more about being racist than earning a profit!"
I may not have articulated myself very well when I posted that, Sorry.
No, I'm absolutely pissed that any of those loan programs (ARM's, zero down, 125% LTV etc. )were available in the first place. Most of the people who got "hurt" in the bubble were victims of nothing but their own stupidity, aided and abetted by both the government and private industry. Now we've got the taxpayer on the hook for bullshit FHA loans that are defaulting in large numbers too. These loans are of course made to the same bunch of deadbeats who thought they could buy 700K houses on a strawberry picker's income.
Guess what? Income is a pretty good determinant of what you can afford, and no magic lending program can ever remediate the fact you pick strawberries for a living. No, you don't deserve a 700k McMansion, get fucked. In a just world, the bank would actually consider ability to repay the loan, but government requirements and regulalion changes allowing loan originators to sell off loans after making a profit on the origination created an environment ripe for abuse and collapse.
What I essentially was trying to say is that the UK is asking for a repeat of what we got here in the US and the government has ZERO place in mortgage lending.