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The British panic
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Re: The British panic
Originally posted by Mega View Post
The same is done in the Netherlands for guaranteeing up to €265000 on mortgages that are capped at €350000. Free money for the banks! The main 'problem' is that they have serious problems financing these mortgages, as international investors are not happy to invest into mortgages with a LTV of higher than 80% (Basel III requirements), and Dutch mortgages go all the way up to 106% LTV (gee I wonder if that could go wrong!).
Canada and the US offer similar guarantee schemes, afaik.engineer with little (or even no) economic insight
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