The state will use £200 million to pay off mortgage arrears of "decent" families who have fallen into mortgage arrears and will allocate £100 million to pay mortgage interest. Despite initial public reaction which seems to be that people who have bought properties should have known the risks they were taking and should not get government support when they get into trouble, Hazel Blears believes that it is more cost effective to pursue this policy rather than see people thrown out of their homes.
Particularly upset are potential first time buyers who had previously been priced out of the market, and are now watching on as their taxes are used to subsidise homeowners.
