Friday, March 20, 2009
Nothern Rock still lending 4 1/2 times one salary
The FSA sent a LOUD message this week to lenders that once prices fall they will regulate on 3x's income if lenders start to lend irrepsonsbily again, that is failing to keep prices keeping pace with wages. Today there was criticism of the Rock lending out over 1 billion irresponsibly after the government bail out, yet surely any politician / reporter or lender suggesting anyone should take a mortgage on a property that is not at least 40% below peak is IRRESPONSIBLE. As is suggesting to FTB's that loan to income ratios fixed at 3x's once prices have fallen in line with income is not THE BEST NEWS FOR FIRST TIME BUYERS. Why would anyone think that regulation and keeping prices in line with wages is not the best thing that can happen for any future buyers?