Wednesday, 4 February 2015

They (want to) own land - give them money!

From City AM:

A SCHEME that allows people renting property to take out an interest-free loan from their employer for their deposit is to be rolled out across the UK after launching in London last year.

The scheme, which will work like the season ticket loan, already in place to help commuters pay for their travel costs, was launched by London Mayor Boris Johnson with charity Shelter yesterday. The Co-operative Group will be the first employer to offer it to its 70,000-plus employees.

a) Those deposits will be leveraged up with commensurately larger mortgages.

b) The worker who takes that first sweet taste of Home-Owner-Ism will henceforth be beholden to his boss.

"Sir, how about a pay rise to help me pay off my mortgage?"

"Hmm, interesting... how about I don't call in that £10,000 interest-free loan?"


Rich Tee said...

It reminds me of those pyramid investment schemes that break out amongst housewives from time to time. Basically everybody with a stake in it tries to recruit new people into it all the time....until it collapses.

Disappointing to see Shelter involved. Boris Johnson is good at bringing people into the "big tent". He neutralised the investigative journalist Andrew Gilligan by offering him a job as London Cycling Commissioner.

The Cowboy Online said...

Nowhere is it mentioned that the loan is for a deposit on a house purchase, so it's likely this is the security required when renting a property.

Lola said...

Welcome to New Feudalism.

Matilda Eriksson said...
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