Sunday, Oct 18, 2009
More on the FSA mortgage review
BBC News: Tough new lending rules expected
But it is expected to stop short of caps on loan-to-value ratios and income multiples that lenders can offer borrowers.Gordon Brown said the "much tougher rules" would protect the public."Never again should banks and credit card companies encourage you to borrow more than you can realistically afford to repay," he said in a webcast on the Downing Street website. "I believe lenders should have to carry out proper checks on incomes before agreeing home loans. "And to protect homebuyers further, we need much tougher rules to make sure that high loan-to-value or high loan-to-income mortgages are offered only when the lender has done rigorous checks to ensure people can keep up repayments."
Posted by z_boson @ 10:20 AM (260 views) Add Comment
3 Comments
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1. mark wadsworth said...
One of my favourite bloggers, Man Widdecombe, did his own version of the pod-cast by Gordon Brown on which this article appears to be based.
Which was much funnier.
2. paul said...
'Protect homebuyers'
"And to protect homebuyers further, we need much tougher rules to make sure that high loan-to-value or high loan-to-income mortgages are offered only when the lender has done rigorous checks to ensure people can keep up repayments."
Interesting.
Making loans more realistic will only send house prices down, completely against the interests of homeowners, by hampering access to the silly prices being paid for houses currently.
3. Fraccy said...
This is written by the banking industry, for the banking industry. Insisting there be an increase on the checks on borrower's income is simply a mechanism of compromising the right to privacy of the borrowers, and, more importantly, thereby creating a means for the lenders to reduce their risk, and thereby, their profit. Thats a "tough new rule" is it?