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villa-ru-
Hmm... Subprime though.
Plenty of sub prime mortgage products on offer in the UK too!
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The products that caused the problems in 07-08 were the ones that didn't have 30 year fixed rates (because borrowers couldn't pay when the initial teaser rates expired).
However, I suspect the UK government's appetite to guarantee everyone's mortgage is quite low. Probably the demand for 30 year fixed rate GBP paper is similarly low and would crowd out the government's own borrowing needs. Helps to have the global reserve currency sometimes!
Stonehedge
NickCJ
I quite like the US approach to mortgages though...none of this 2 year fix bullshit.