The Rock Can Offer Foundations For First-Time Buyers: Gordon Brown
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Picture shows Gordon Brown (PLS SEE ATTACHED JPEG) Pic by Nigel Whitfield
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Date: 19/11/2008
Client: Gordon Brown Associates
Issued on behalf of and with the approval of GORDON BROWN ASSOCIATES
NEWS RELEASE
CONTACT: Paul White on 01325 363436
THE ROCK CAN OFFER FOUNDATIONS FOR FIRST-TIME BUYERS: GORDON BROWN
A leading North East lawyer has sent a video message to the Chancellor about how the Northern Rock can help the housing market.
The nationalised Northern Rock could be used to help first-time buyers onto the property ladder and generate movement in the market, according to Gordon Brown – in a letter and video to the Chancellor.
Mr Brown, the author of the letter, is a leading North East lawyer with 31 years’ experience in the legal sector and housing market and is senior partner at Gordon Brown Associates.
In his letter to Alistair Darling, Mr Brown has outlined a proposal based on the system of lending used in the late 70s, when some buyers used multiple lending sources such as insurance companies and local authorities to part-finance their purchase.
In his letter to the Chancellor, Mr Brown proposed a top-up system provided by either Central Government or via local authorities. The letter read: “The taxpayer now owns an organisation that until last year was handling more loan applications than any other – Northern Rock. Its administrative capabilities could be used to handle top-up loan applications. I don’t suppose that European legislation would allow the top-up loans themselves to be channelled through Northern Rock?”
A copy of the letter is available do download from the bottom of this page.
The letter has been copied to the Liberal Democrats and the Conservatives, and has received a response from the office of Conservative MP Grant Shapps, Shadow Minister for Housing, which stated that his ideas for a top-up loan system would be fed into the discussions being held on the issue.
Mr Brown said: “After the initial set of measures to help the market were announced in September, I wondered just how much expert opinion and input had gone to shaping the plan and I thought about my own experience.
“In the 1970s, many first-time buyers were helped onto the property ladder by insurance companies using the market for top-up loans secured by second mortgages and local authorities also helped with the process.
“With the Northern Rock, we have a tool to bring in a similar process, but I doubted very much whether this approach had been considered.”
Gordon Brown Associates has legal offices in Chester-le-Street, Newcastle, Sunderland, Houghton le Spring and Stanley, as well as estate agency services in Chester-le-Street, Sunderland and Low Fell.
Mr Brown added: “I’m gratified that I have had one letter back from the main political parties and that at least someone is prepared to listen to more than three decades of experience as the country, and indeed the world, looks to deal with the current crisis in the housing market following the recent measures intended to deal with the credit crunch.”
ENDS
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