We call on the Government to bypass the commercial banking system and use its sovereign power to create a scheme to directly to fund mortgages for eligible first-time buyers. These public mortgages should be offered at a 2.1% fixed interest rate with a 15-year maximum term.

We think the housing crisis may be partly fuelled by banks creating mortgage money for private profit. This proposal calls for the UK Gov to 'mint' its own funds to finance first-time buyers directly. We think a 2.1% fixed-rate, 15-year mortgage could save the average buyer over £130,000 in interest vs a typical bank loan. Crucially, all interest paid would become public revenue, not bank profit, which could create billions per annum for the UK once the scheme is fully established.