We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
MSE News: 'Dear Chancellor, don't cap mortgage lending'
Options
Former_MSE_Guy
Posts: 1,650 Forumite
This is the discussion thread for the following MSE News Story:
"There could be a cap on what homeowners can borrow as a percentage of their property value. Critics think it wouldn't work ..."
"There could be a cap on what homeowners can borrow as a percentage of their property value. Critics think it wouldn't work ..."
0
Comments
-
The author is saying that the mortgage cap would be the harbinger of more stop-start economics. But if the mortgage cap is fixed permanently at say 3.5x earnings, there's nothing stop-start about it at all. It would be a prudent way of reducing personal debt levels. This would keep a lid on house prices, and it might help to contain property speculation. It would amount to a return to the pre-1980s situation, when there was a de-facto mortgage cap of about 3x salary. Ultimately, this kind of regulation might be needed in order to help stop the massive debt bubble/bank bailout/sovereign defaults that currently plague us.0
-
Quelle surprise - mortgage broker opposes restrictions which might reduce mortgage lending - no vested interests here - much!
A cap on LTV (which is what is being proposed) which prevents a return to 100% or even higher mortgages is a no brainer - everyone should have to provide some form of deposit if only to ensure they are sharing the risk of owning and caring for a property. It also ensures that new home buyers don't enter the market until they have had at least a period of managing their finances, spending less than comes in and saving. Its no coincidence that the global credit crisis came after a period where mortgages were being offered at 125% and on top of that people were borrowing another few thousand on credit cards to subsidise their lifestyles beyond their means.Adventure before Dementia!0 -
This is exactly what this country needs as a part of further measures to stablise house prices over the medium to long term.0
-
The banks will end up being self regulating. In part to meet the regulatory requirements of Basle 3 by 2018. As a consequence gross profit margins will have to increase on all forms of lending.
Tinkering with lending caps has little to no bearing. Just good media spin.0 -
opinions4u wrote: »Simply limiting LTV won't stop crap quality lending.
I never said this alone would but as part of a series of measures such as stricter income multiple lending and a clampdown on IO mortgages.0 -
I think maybe they should have done this 20 years ago? Maybe better late than never.0
-
Dear Chancellor, Do cap mortgage lending :beer::exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
The idea has unintended consequences written all over it.
Once demand picks up and we hit a seller's market, people will realise that the only way they can buy a house is if their gross salary rises. Watch out for substantial pay demands hitting the economy.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Next thing we know Nanny will be wanting to regulate the mortgage rate.
Just like in the good old days (until the early 1980s?), when only building societies provided mortgages, they all charged the same rate set by the Building Societies Association (with a nod/wink from government), and you had to queue for them.0 -
Ray doesn't seem to realise we are already moving into a Dickensian era between the have and have nots, where people 'should know better than to move out of the sphere into which they are born'.
The removal / rejigging of EMA, increase in university fees, cap on mortgage lending, tax breaks for hiring a cleaner.
All these things seem designed to keep the poor people where they are, preferably cleaning the rich people's houses. I increasingly think George Osborne should go back to folding towels in Selfridges, a job where he probably had a clue what he was doing.
The Tories - Did any of them study history?Debt LBM (08/09) £11,641. DEBT FREE APRIL 2021.
Diary 'Butti's journey : A matter of loaf or death'.
Diary 2 'The whimsical tale of the Waterbed of Debt' 48% off mortgage
'one day I will be rich and famous…for now I'll just have to settle for being poor and incredibly sexy'. Vimrod Member of MIKE'S :cool: MOB0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards