Affordable Housing Mortgage Rates

Bearish

Registered User
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Has anyone noticed how the mortgage rates on affordable housing loans from the county councils have not come down in recent times despite the cost of government funding dropping significantly. I understood the councils got the mortgage funding directly from the state?
 
The councils get the funding from the Housing Finance Agency, which operates on a break-even basis. So it won't lower its rates if doing so would make it unable to meet its costs.
 
Yes I understand that and the HFA as a state agency gets its funding from central government I presume. As the NTMA recently sold 7yr bonds at less than 70bps to the market so I assume the funding for the HFA has similarly reduced. What is the point in the ECB flooding the markets with liquidity if state agencies do not pass it onto the end borrower? I think this should be a similar argument being made re SVR customers with commercial banks. Are those of us who are paying are affordable housing loans subsidising those who have defaulted on the county council's books?
 
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