A bond-based home-finance system for the United Kingdom

A borrower-owned, bond-funded mortgage market – in the successful mould used across several continental northern European countries – that lowers mortgage costs for households, strengthens the UK's fixed-income ecosystem, and gives the state real fiscal headroom to fund green infrastructure, the NHS and debt reduction.

Open the Live Model See methodology & sources

For households

Property owners fund their own loans in the bond market and can buy them back when it suits them – freeing themselves from bank-set repricing every 2–5 years. Lower rates on the average UK mortgage mean a meaningful, visible increase in disposable income, from early in the reform.

For the state

Deeper, AAA-grade bond finance strengthens confidence in UK fixed income, supporting lower state borrowing costs over time. Rising employment and spending flow back through higher tax and VAT receipts, reduced social-benefit costs, and captured land-value uplift – headroom for green infrastructure, the NHS and national-debt reduction.

The foundation: an enabling act of Parliament

For this to become a lasting success, relatively dramatic legislative action is required – enabling the reprice-moment conversion from bank finance to bond finance, a borrower-owned bond-issuance framework, and neutral tax and regulatory treatment. The reform is designed to pass through both chambers within roughly six months, so the system can prove itself within the current Parliament's political horizon.

How to use this tool

The Live Model opens on a conservative opening scene. Every input is a lever you – the Treasury, Downing Street, or their advisers – can adjust yourself:

Set the bond-based mortgage rate and watch household savings respond.
Tune the state-horizon in years and months (default ~2y 6m, the prove-it window before the next election).
Adjust the state split between green-infrastructure/NHS and debt reduction.
Change legislation, conversion and land-assumptions to test scenarios.

You can save your settings on this device, share them as a JSON file, and download a spreadsheet to keep working offline.

Illustrative modelling for policy discussion. Not financial advice; not an OBR or HMT product. Inputs are editable and should be reviewed against current official data before use.