Wednesday, October 13, 2004

3.6 million pound Tool shed

If he can't apologise for the War the least he could do is
apologise for being such a tool ...
After strolling along the Edgware Road a few days ago I got to thinking about Tony Blair's mortgage (his new house is just off the Edgware Road):
  • His new home cost £3.6m.
  • He earns £170,000pa
  • His wife earns similar
  • Two years ago, when the Blairs bought two flats through a convicted Australian conman, Cherie said "It was our only remaining capital to buy a property for our family."
  • Tony has a heart condition.
So, how is it that the Blairs can afford a £3.6m house on a combined income of £350,000pa? Normal mortals in similiar circumstances would be able to borrow maybe £1.4m.
Maybe Tony and Cherie have copied a few tricks from their old friend Peter Mandelson; telling porkies on their mortgage application form or borrowing money from an obliging millionaire currently under government investigation?
No. 10 isn't saying. One explanation floating around the newspapers last week was that the mortage was granted 'on the basis of future earnings'. If so, this represents a radical shake-up of the UK housing market and we can look forward to the prospect of unborn foetuses, from reliable professional families, taking out mortages on buy-to-let properties in West London.
I'm also looking forward to the fact that London house prices are starting to fall, particularly at the high end, and may even drop by 20% in the next year or two. Total loss to the Blairs £720,000. I'd personally lose a few grand as well but it would be worth it, just to see that pair sucking on a little of what they've been dishing out for a change.

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