Public Mortgage Fund

A Fair Housing Finance Alternative

I. Core Message

Millions are impoverished by mortgage rate hikes driven by unelected central banks and profit-seeking financial institutions. The current system is unjust and designed to keep working people indebted and disempowered. A Public Mortgage Fund, operated separately from traditional banks, would guarantee affordable, stable home loans that serve the public good, not private profit.

II. The Problem

1. Mortgage Rate Shocks

>>> Recent interest rate hikes (e.g., from 1.5% to 5–6%) have doubled monthly payments for millions.

>>> Families are forced to choose between housing, food, and energy.

>>> These hikes are often a result of decisions by unelected bodies like the Bank of England, beyond democratic accountability.

2. Market Rigging

Mortgage markets are manipulated by:

>>> Central banks adjusting base rates for broader macroeconomic aims (e.g., fighting inflation).

>>> Commercial banks using opaque lending criteria and profiteering from volatility.

>>> People have no protection against economic shocks outside their control.

3. Financialized Housing

>>> Housing is treated as a financial asset rather than a human need.

>>> Rising rates enrich banks and institutional investors at the expense of ordinary citizens.

III. The Proposed Solution: National Mortgage Stability Agency (NMSA)

1. Purpose

>>> Provide stable, low-cost mortgage products directly to the public.

>>> Hold mortgage interest rates fixed for the full term (e.g., 15–30 years or longer including follow on to children).

>>> Protect homeowners from market volatility, speculation, and financial manipulation.

2. Structure

A publicly owned entity, similar in governance to the NHS or public pension funds.

Funded by:

>>> Government-backed bonds

>>> Reinvestment of repayments

>>> Optional citizen savings bonds

>>> Managed transparently, with citizen oversight panels and independent audits.

>>> Modern monetary theory

IV. How It Would Work

V. Benefits

For Citizens:

>>> Predictable, affordable housing costs

>>> Protection from eviction or repossession due to rate shocks

>>> Increased housing security and mental well-being

>>> Greater homeownership access for low- and middle-income families

For Government:

>>> Generates long-term revenue via repayments

>>> Encourages economic stability (housing anchors communities)

>>> Reduces dependency on housing subsidies or emergency support

>>> Weakens speculative forces in the housing market

For Society:

>>> Dismantles housing as a speculative commodity

>>> Empowers citizens over financial institutions

>>> Democratises economic infrastructure

VI. Implementation Pathways

1. Legislation

Introduce a Housing Finance Reform Act to establish the NMSA

>>> Require central banks to support housing stability as a secondary mandate

2. Pilot Programs

>>> Start with first-time buyers or families on social housing waitlists

>>> Offer refinancing options for those trapped in unaffordable mortgages

3. Public Education Campaign

>>> "Homes Not Profits" — raise awareness of how current systems are designed to exploit

>>> Use case studies of mortgage victims to drive support

4. Coalition Building

>>> Partner with trade unions, housing advocacy groups, and local councils

>>> Leverage public anger around rate hikes to build grassroots pressure

VII. 🗣️ Key Messaging & Framing

>>> “Mortgages shouldn’t be a trap.”

>>> “The housing system is broken—let's take it back.”

>>> “A home is a right, not a gamble.”

>>> “Why should unelected bankers decide if you keep your home?”

>>> “We bailed out the banks—now it’s time they stop bleeding us dry.”