Foreign Perspectives

Archive for the ‘Places’ Category

Perhaps one of the most interesting developments in the mortgage market in recent years is the arrival of chequebook mortgages. That’s interesting in the Chinese sense of the term in their curse “may you live in interesting times”.

A key aspect of a mortgage is that it’s a very, very long term committment. Typically the term is at least 25 years over which time untold numbers of changes to your life and lifestyle can take place. Children can arrive, grow up and leave home over that time, interest rates can go from 5% to 15% to 5% (and have done exactly that in the past), the area in which your house is in can even go from “up and coming” through “marked for demolition” and back to “attractive” (which has happened in areas of Belfast). That’s just the changes that can happen to anyone.

So, as I say, the arrival of chequebook mortgages is “interesting”.

For one thing, 25 years is so long that you just don’t think about arriving at the end of such a period and that, for a mortgage product, is a fatal error to make. Chequebook mortgages actively encourage that kind of thinking in that they effectively give you an overdraft of perhaps £100,000 or even more. It’s all too easy to spend that on the day to day things and find that you’ve absolutely no way to cover the final mortgage payment 25 years down the line.

Ah, but you’ll look at your statements all the time, won’t you? Many people don’t but even for those that do, that 25 year period is just too long to appreciate the problems that can befall you by spending just a little bit too much as you go along.

As regular readers will know, I’ve been getting going on my direct mail campaign aimed at increasing the number of entries on the B&B and self-catering listings sites.

The second use of the mailing list for Scotland pulled in quite a considerable number of properties over the last two weeks. So much so that I’m going to have to implement the planned restructuring of the site well ahead of schedule.

For reasons which escape me, the England mailing hasn’t pulled in anything like the number that Scotland did. Something to explore the reasons for before I do the next one in 2008.

However, for the first time, I’ve targetted Northern Ireland. Early days yet of course, but it looks like the takeup will be relatively low. The size of the mailing was pretty much similar to that for Scotland but, so far, I’ve only received about 1/4 of the response. Still, perhaps some more will come in over the course of the weekend.

I see that the Information Commissioner would like breaches of the magnitude seen this week made a criminal offense.

But if it were so right now, who would be the person being arrested by the police? Would it be the “junior official” who appears to have made an error in using a courier firm rather than the Royal Mail. Yet, at the time he would have been told NOT to use the Royal Mail as they were planning to go on strike that week.

In such instances, the instructions are to use courier services instead and that’s just what he did.

Many people have said that such a junior official should never have been responsible for so many records yet that’s the reality of day to day operations in large government departments. Quite junior people need to be able to work with all the records in that way. Surely no-one is expecting the head of HMRC to run the programs that process the various benefits himself?

Short of getting in the car and driving down to London with the CDs, just how could he have gotten the information to London? Yes, there is encrypted e-mail between government departments but it’s just not up to e-mailing two CDs full of information. After all, normal e-mail systems usually can’t even e-mail a single digital photograph these days.

It looks like the UK government is shaping up to provide yet another unconditional guarantee with an open-ended cost for the taxpayers.

Last time it was Northern Rock for which they have kindly guaranteed that everyone in the UK will pay £1300 to support a bank that should simply have been allowed to fail. This time, it’s potentially even more than that as they appear to be about to guarantee that they will cover any losses incurred by any of the 25 million people who are not potentially at risk to identity fraud thanks to action by the government.

Still, at least they are directly responsible for that this time around.

Every time that the issue of ID cards comes up in the UK, there are questions asked about how securely the information collected will be held and every time the government says “trust us”.

Well, today we’ve seen just how much we could trust the government with our information. Not that far at all as it happens as they’ve just managed to lose the complete ID records of just about everyone in the UK. Had it been anyone other than the government that had lost it, those places providing ID theft solutions would be advising everyone to change their bank accounts. When you’re talking millions of people, that’s not really a runner of course.

Still, there are encouraging signs in this fiasco. For one thing, it’s a great example to refer the government to when they say that the ID card information will be perfectly safe. And, of course, it’ll be a brilliant excuse to use when your bank claims that you’ve overspent on your credit card as you’ll be able to say that your identity was stolen.

Perhaps TNT aren’t the best company to use if you’re sending really valuable items in the post!