George Osborne switches mortgage to exclusive bank on the CHEAP while working Brits continue to struggle

   

Home a loan: George Osborne jogs near his home
Rowan Griffiths

George Osborne has switched his mortgage to an exclusive bank who do special deals for the mega-rich.

The move may have nabbed the Chancellor an interest loan of less than two per cent on the house, which he rents out for £10,000 a month while he’s living in Downing Street.

And that would put him in a better position to dodge the worst of the feared interest rate rise which experts forecast for later this year.

One top ­economist said last night: “He’s clinched himself a much cheaper deal than Joe Public could get.”

The Sunday People today reveals Mr Osborne changed the mortgage on his £4million home in west London’s trendy Notting Hill just before Christmas.

He switched the loan – split at the time ­between Barclays and C. Hoare & Co – to RBC Europe, a subsidiary of Royal Bank of Canada.

Privately-owned RBC specialises in wealth management for the super-rich, offering them “highly competitive rates,” according to its website.

Labour MP John Mann, of the influential Treasury Select Committee, said: “He is trying to get a cheaper rate than everyone else.

“This is typical of George Osborne – it’s one rule for the rich and another rule for the rest of us.”

Ray Boulger, of independent ­mortgage firm Jon Charcol said it seemed Mr Osborne was remortgaging to get a cheaper deal.

He said Mr Osborne would qualify for two main reasons.

First, he and his novelist wife Frances have serious equity in their London home, which has more than doubled in value since they bought it for £1.85million in 2006.

And second, he is wealthy enough to join a bank for “high net worth” people – which has extra benefits.

Mr Boulger said: “The rate will vary on the individual but someone like George Osborne is likely to pay 1 to 1.5 per cent above the base rate of 0.5 per cent.”

That’s significantly less than the average high-street mortgage.

He added: “RBC are not in the mainstream. You or me are not going to be going there – they are not in our market.  



Mortgages: RBC are not available to the normal man


“They are a private bank and I’m not sure what their minimum loan size is but it would be at least £500,000 or maybe £1million.”

And economist Professor Danny Blanchflower, once a member of the Bank of England’s monetary policy committee, said: “George Osborne has prepared for a hike in interest rates by arranging a new personal mortgage with a Canadian bank which caters only for the super-wealthy.

“There is every likelihood that he has clinched himself a much cheaper mortgage deal than Joe Public can get, thanks to being able to join a bank for the super-wealthy.”

If Mr Osborne has taken out a fixed-rate rather than a tracker mortgage, it could help him if interest rates go up as predicted either later this year or in early 2015.

Bank of England governor Mark Carney says he would consider raising rates when unemployment falls to seven per cent. It now stands at 7.1 per cent.

Mr Osborne switched the mortgage to RBC Europe Ltd on December 9 last year.

The Notting Hill house has six bedrooms, four reception rooms and three bathrooms and is now worth an estimated £4million.

The Osbornes rake in £10,000 a month from tenants who pay £2,450 a week for the house while the Chancellor’s family live rent-free in Downing Street, as the Sunday People ­revealed in November.

It makes a mockery of the idea we are “all in it together” with ­ordinary homeowners struggling with interest-only mortgages .

More than a million people worry what will happen when the time comes to pay off their mortgages – and they are not rich enough to take advantage of the benefits of RBC.

There are currently 2.6million Brits with interest-only mortgages and the Financial Conduct Authority watchdog ­estimates nearly half won’t have savings or other funds to cover the final bill.

According to its ­research the average shortfall will be £71,000.

Interest-only mortgages were popular sold with endowment policies in the 1990s.

And in the past decade home-owners have turned to them again, banking on the rising value of their homes to cover the cost.

But now they have discovered they have a huge debt hanging over their heads.

One in 10 – the equivalent of 260,000 people – has no repayment strategy in place.

They face the prospect of having to sell their homes when their ­mortgage matures.

Mr Osborne’s spokesman said last night: “George’s property is declared in the correct manner and unlike previous Labour Chancellors he does not claim any taxpayers’ money for it.”
Workers continue to suffer

Danny Blanchflower - former Bank of England committee member

Last week we found out that the ­unemployment rate had moved close to the threshold the Bank of England’s monetary policy ­committee set for rate rises.

Falling unemployment is great news.

But the bad news is that the British people are still hurting as wages continue to take the strain.

Ministers keep protesting that standards of living are rising, when of course they aren’t.

Don’t believe a word they say.

Real wages continue to fall for the typical worker.

Official data showed that prices are rising at two per cent a year and wages at only 0.9 per cent – so prices are rising faster than wages and workers’ standards of living are falling at more than one per cent a year.

The recent growth we’ve seen is the wrong kind. It isn’t coming from more exports or greater investment.

It’s people using up their savings and borrowing against the unsustainable rise in house prices that ­Osborne has engineered with his cynical Help to Buy Votes scheme.

The Bank may have to respond to that madness by raising interest rates.

Osborne hailed rock bottom rates as evidence his austerity programme is working.

In November 2011 he argued that “a 1% rise in interest rates would take £10billion out of the pockets of British families through higher mortgages and lead to more repossessions and job losses”.

Now we find Osborne has prepared for a hike in interest rates by arranging a new personal mortgage with a Canadian bank which caters only for the super wealthy.

There is every likelihood that he has clinched himself a much cheaper mortgage deal than Joe Public can get.

One rule for them and one for the rest of us.

No wonder the Tories fall in the polls.

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 ::zomb::  ::zomb::  ::zomb:: 

Disgusting Tory  :::hitler:   Scum.

FUCKING TORY SCROUNGER!

...He lives in Downing Street at tax payers expense! FFS!

Oh he's a mere novice compared to Gordon Brown!

Vanity project lets Gordon and Sarah enjoy jet-set premier life-style of first class flights and five star hotels
Gordon Brown has since leaving Downing Street raised over £3 million to support charitable projects yet has given less than a £1 million to charity. Nearly three-quarters of the money raised has gone on his office and globe-trotting travel expenses that run at over £10,000-a-week

http://order-order.com/2014/01/24/exc-gordon-brown-office-has-10000-a-week-expenses-raises-over-3-million-gives-less-than-1-million-to-charity/

Tess. wrote:Oh he's a mere novice compared to Gordon Brown!

Vanity project lets  Gordon and Sarah enjoy jet-set premier life-style of first class flights and five star hotels
Gordon Brown has since leaving Downing Street raised over £3 million to support charitable projects yet has given less than a £1 million to charity. Nearly three-quarters of the money raised has gone on his office and globe-trotting travel expenses that run at over £10,000-a-week

http://order-order.com/2014/01/24/exc-gordon-brown-office-has-10000-a-week-expenses-raises-over-3-million-gives-less-than-1-million-to-charity/

Why is Osborne renting his house out, with all of his money, and then he is living in Downing Street, at the expense of the tax payer?

....He's a fucking fraudster!

Catman wrote:....He's a fucking fraudster!

Absolutely. Gordon Brown's the biggest hypocrite in modern politics.

I see you hiding a property whilst sponging of the taxpayer makes you what mincer.

A fraudster.

Osborne has remortgaged hardly a crime millions do it every year you bent btard.

How dare you call others when you have been defrauding the taxpayer for years. I sincerely wish I knew your details to give to the DWP.

I'm sick of paying for whinging mincers.

Just for the record on here as well'

The information about Gordon and Sarah Brown is wrong. This has come from a spreadsheet on Guido Fawkes website where he has used figures taken from the MPs register of interests. The figures he has used are not payments made into his accounts. They are costs accepted and paid for by the hosts that invited him to speak at an event or costs that are incurred by the hosts for the work that he has done.
This is easily checked by looking at the register of interests or via the 'They work for you website.
Take an example of an entry in the register of interests like £2,653.19 and then go and look at Guido Fawkes spreadsheet and you will find it on there.

Flight costs paid for me and my staff: value £2,653.19 by Econet Wireless International (Pty) Ltd, 3 Eaton Avenue, Johannesburg, 2191, South Africa, for meetings with Nigerian President Goodluck Jonathan in Nigeria. (Registered 25 October 2013)

Also, costs associated with Mr Brown’s role as Distinguished Global Leader at New York University (which are included in Guido Fawkes figures) are met by New York University; as Chair of the WEF Policy Coordination Board are met by the World Economic Forum; and costs associated with a recent project at Harvard University were met by Harvard University. The author proceeds from Gordon’s recent book Beyond the Crash are donated to Theirworld.


That's it guys.