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Vince Cable - 3.5 To 4 Times Salary


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HOLA441

Fivelive is reporting that Vince Cable has just been on BBC TV News saying that the banks should not throw petrol on the housing bubble and that they should consider sensible lending ratios of 3.5 to 4 times salary for a mortgage.

Alas, it is Toothless Vince so I doubt anyone will listen to him.... Even as I type this I am beginning to forget that Vin..... What was I saying?

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http://www.bbc.co.uk/news/business-27809536

Vince Cable: Housing boom 'needs stopping'

Action must be taken to stop the "housing boom" in parts of the UK getting "out of control", according to Business Secretary Vince Cable.

He said he was "appalled" that some banks had been lending five times a mortgage applicant's income, suggesting a "stable level" was up to 3.5 times.

The desires of potential homeowners should be balanced against the stability of the economy, he added.

His comments come ahead of a major speech from the chancellor.

George Osborne, in his Mansion House speech, is expected to say how the Bank of England could tackle any financial instability caused by house price rises.

Price expectations

Various surveys have suggested that house prices have been rising in most parts of the country, but particularly in London.

The latest figures from the Office for National Statistics (ONS) found prices rising at an annual rate of 17% in the city.

Mr Cable told the BBC: "In the short-run, the immediate problem is to stop this boom getting out of control."

However, last week the Nationwide Building Society said that there had been signs that activity in the UK housing market was starting to "moderate".

And the Royal Institution of Chartered Surveyors (Rics) said that the momentum was starting to slow in the housing market, as "a lack of supply, higher prices, and more prudent lending measures" was making buyers and sellers more cautious.

I thought lack of supply was the reason prices were rising?

Edited by cool_hand
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HOLA445

Now he's being accused of trying to hijack Gidiot's Mansion House speech.

So either Vince knows that Gidiot's going to say the same tonight and wants to say it first to get the credit, or, he knows that Gidiot is going to say anything but limiting mortgage salary multiples. My money is firmly on the latter...

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HOLA446

This is a man whose government have introduced a scheme to guarantee people borrow many multiples of salary with a 5% deposit.

His hypocrisy and lack of self awareness are of epic proportions.

How i wish David Davis had beat Camoron several years ago, im sure with him leading the Tory party they'd offer some common sense policies.

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Maybe he's forgotten that he's a Cabinet Minister in the Coalition government.

So he's told the BBC TV News and its audience about his ideas on restricting the size of mortgages. It would have been more interesting if he'd said on the BBC TV News that he'd said it in Cabinet meetings and then he could have gone on to report what they said in response.

Then he might have gone on to say what he was going to do next. For example did he consider resigning considering the devastation the government's house price policy is having on the UK's economy and also on the lives of many people from all age groups.

But no - the general election is approaching so he seems to be offering some sensible policies while at the same time drawing the hefty wage, enjoying the status and going along with the crazy house price antics of the Coalition (Conservative and LibDem coalition - worth reminding as the LibDems keep trying to pretend to people that they're not responsible) government.

Edited by billybong
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HOLA4410

I would wager the banks are already starting to do this and the crash is becoming locked in.

The noise fromt eh MPs are just to save their own neck and convince people they are being sensible for our own good.

Crash-tastic.

My own MP is quite a big wig in the Lib Dems and only this weekend responded to one of my emails with the biggest pile of shite you could have asked for (BoE have the tools and the mandate etc etc), so there are certainly a few die-hards out there.

Now he's being accused of trying to hijack Gidiot's Mansion House speech.

So either Vince knows that Gidiot's going to say the same tonight and wants to say it first to get the credit, or, he knows that Gidiot is going to say anything but limiting mortgage salary multiples. My money is firmly on the latter...

Agreed - this is just Vince lining up his ducks so he can say "I told you so" like he did last time. ****.

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HOLA4411

George Osborne, in his Mansion House speech, is expected to say how the Bank of England could tackle any financial instability caused by house price rises.

So more hot air then the BoE will come along and say that they don't have any power to do any such thing (at least in London). Carney has already dealt with the idea that the BoE has any power in that connection, some months ago now. Doesn't Osborne read the newspapers.

They are just time wasters wasting people's time. It's no way to run a country.

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HOLA4412

I heard him on Radio 4 this morning. He could not give a cogent reply to John Humphrys regarding the impact of a maximum 3.5 salary multiple, on buyers in the London market. It seems that the rest of the country will be caught up in the blast of what is lobbed at the London bubble. The whole approach is rather schizophrenic. The banks are instructed to tighten up on mortgages, then slacken off, then tighten up again, all within a short time frame. I feel that it is an **** saving exercise for the Government/politicians when the shtf. The whole approach has been so convoluted that when mortgagees get into difficulty they can say well we did flag up the potential problem(s).

It is all an exercise in just keeping the plates spinning until the election. A little touch here, a little touch there!

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HOLA4420

"BBC Business Feed now highlighting how the median salary is £27k and with what Vince is suggesting, loans of 3.5 salary multiples would mean no-one could afford today's house prices"

So the BBC has finally noticed that house are unaffordable?

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HOLA4421

BBC Business Feed now highlighting how the median salary is £27k and with what Vince is suggesting, loans of 3.5 salary multiples would mean no-one could afford today's house prices

:rolleyes:

So.. either:

a) House prices are too high, or

B) Wages are too low, or..

c) We need more subsidies for bankers and builders.

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This is a man whose government have introduced a scheme to guarantee people borrow many multiples of salary with a 5% deposit.

Oh-it's that Vince Cable. I thought it was just some bloke they stumbled across while doing a vox pop.

I really love this innocent bystander routine that the Lib Dems have now perfected- it's like their entire period in office has just been a blur to them- they knew something important was going on- but never quite worked out exactly what it was. :lol:

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HOLA4425

Oh-it's that Vince Cable. I thought it was just some bloke they stumbled across while doing a vox pop.

I really love this innocent bystander routine that the Lib Dems have now perfected- it's like their entire period in office has just been a blur to them- they knew something important was going on- but never quite worked out exactly what it was. :lol:

You could imagine him in war time shouting at the Germans not to hurt you, just after he's sold them the ammunition to win the war.

Still i don't hate him in the same way i utterly despise Gidiot and Camoron.

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