Tuesday, May 12, 2009
FSA Eyes New Padlocks for their Empty Stable
CityWire: FSA's Turner considering new mortgage regulation
‘We could be proposing mortgage regulation as a means to reduce the amplitude of economic cycles,’ said Turner, adding that high house prices and volatility in the property sector led to volatile consumer behaviour.
Later in the article some people whose bonuses so depended on their ability [when every time house prices got too unaffordable and customers that fell within their rules all dried up] to loosen their lending criteria, bemoan the FSA's ideas.
Posted by lukeskywalker @ 05:17 PM (192 views) Add Comment
2 Comments
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1. mander said...
Loan to Value is what will work better. 10% deposit would be advised but it can be outsourced easily. Also the rules need to apply to buy to let as it is not acceptable to have a salary of 25 000 per year and be able to borrow to buy 700 properties. Sorry but this is not capitalism this is market manipulation creating an unnecessary shortage and affects negotiations as well. Limited companies/ PLC should not be allowed to buy already built property but to build new property only.
When will the regulations come into force because since we had the world financial system collapsed and capitalism almost destroyed? Also we hear a lot of advice from estate agents, mortgage brokers etc that regulation will not work. Excuse me but FSA regulation will only solve the problem.
2. Lukeskywalker said...
I think the BTL situation can only be prevented with taxation on secondary residential dwellings which increases if they go empty for a period of time. I think there are two many Lords in power with lots of commercial real-estate to push a land tax through.
When you say outsourced, are you saying that other lenders will stump up the deposit? It would then have to be arranged so that a family's total gearing is accounted for.