Debate House Prices


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MSE News: Risky mortgage clampdown outlined by Bank of England

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Bank of England's planning to cap home loans and introduce stronger checks to make sure borrowers can afford repayments ...
Read the full story:

Risky mortgage clampdown outlined by Bank of England

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Comments

  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    Rather old news.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    not only is this old news but it's universally felt (even by the BoE) that this isn't a clampdown and will have negligible effect on house prices.

    the previously implemented MMR may have some effect as mortgages seem to be getting harder to acquire.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    When will the media grasp the fact that the BOE is primarily looking at the impact on the banks balance sheets if there were to be another financial downturn.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    CLAPTON wrote: »
    not only is this old news but it's universally felt (even by the BoE) that this isn't a clampdown

    Indeed.

    Banks will be allowed to make 15% of loans at over 4.5 times joint income moving forward. The current average is just 9%....

    And the BOE have now, in effect, expressly stated that mortgage loans of up to 4.5 times joint income are not risky.

    Happy days for the housing market....:beer:
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”

    -- President John F. Kennedy”
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