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Mortgage Prisoners

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Council of debt-mongers complaining about the creation of mortgage slaves - err, that is the whole point of lenders overlanding to the market and trying to create a market frenzy getting people taking ever more reckless mortgage packages, a result of your own members' actions.


‘Fatal flaw’ in new rule

By Tanya Powley

Published: September 24 2010 17:10 | Last updated: September 24 2010 17:10

New rules for all mortgage lending are “fatally flawed” and will cause banks and building societies to lend even less than they do now, the Council of Mortgage Lenders (CML) has warned.

The trade body said the proposed legislation for the mortgage market by the Financial Services Authority (FSA) would lead to a fall in the number of mortgages approved and create a swathe of “mortgage prisoners” – borrowers who become unable to remortgage or move home.


Big six dominate mortgage market - Sep-09

Halifax offers rate cuts on mortgage deals - Sep-06

Bank signals curb on high loan-to-value borrowing - Sep-03

Barclays launches “loyalty mortgages” - Aug-26

Mortgage margins at 20 year high - Aug-19

Tips on how to get the best mortgage deal - Aug-18

In a speech this week, Michael Coogan, director general of the CML, urged the FSA to re-evaluate its proposals.

“We do not want to sleepwalk into a housing finance market which is sustainable but meets almost nobody’s aspirations because it

is so risk-averse,” said Coogan.

He also said that lenders might not lend more even as the economy improves.

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The CML’s warning comes as the regulator reiterated a suggestion by the Bank of England last month that it could introduce a cap on mortgage lending as part of a range of new measures to stop risky lending.

Adair Turner, chairman of the FSA, said in a speech this week that maximum loan-to-value ratios could be used to slow down “excessive credit growth”.

...what the VI CML don't understand is it is in everyone's interest for the long term that house prices fall to adjust to a market where there is less money due to the lack of 'funny' money from securitisation ....and the days of shovelling mortgages out of his members' back doors are long over....... :rolleyes:

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The CML can complain all it wants but the truth is that many of it's members (not all I might add as there are some decent-ish members) are involved in and helped drive the UK sub-prime sector.

Northern Rock, the home of the instant NE mortgage, is a full member FFS so it's a bit rich for the CML to be bleating.

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