Here is a puzzler. Many of us are not the owners of inherited fortunes so large that we have no financial need to work. Nevertheless we can, even from the poverty of our own circumstances, see that the prudent thing to do with any spare cash is to pay down debt before making new investments. Unless you seek ‘gearing’, that is borrow money at a relatively low rate and sink it into some speculative venture which will earn you more than you are paying to your lender. Most such chancers are now bust, or have bankrupted their lenders, or both. ‘Gearing’ we can leave aside. If you are not a speculator, you pay down debt before making new investments.
So why does David Cameron have a mortgage?
Well one possible explanation is that the mortgage is being used to pump money out of the Parliamentary Allowance.
How could one tell? Perhaps a clue is to be found in the size of Mr Cameron’s mortgage.
His country property is his second home, but it is worth £750,000. As you might very well expect, given the size of the fortune that he has inherited. Now the Parliamentary Allowance may be revoltingly generous, but not even the trough which the muppets have designed for themselves is capacious enough to accommodate the lifestyle of David Cameron. Reckoning a 5% mortgage interest rate, his £750,000 country house would cost £37,500 a year. If it was 100% mortgaged. The Allowance is less than half that. And what do you know? His mortgage is not 100%, but about (I say ‘about’ because he has slightly changed it recently, I leave it to readers to ascertain the likely motive there) what is needed to milk the Allowance dry.
That’s pretty telling, isn’t it? But it is only speculation. Mr Cameron could put such speculation to rest by answering the question which is perplexing and disturbing so many:
“Why does David Cameron have a mortgage?”