The government should consider imposing caps on the amount mortgage companies can lend to homebuyers, the deputy governor of the Bank of England has suggested. Sir John Gieve, who is stepping down at the end of the month, said that in theory, a ceiling on loan-to-income and loan-to-value ratios could have provided an effective brake
Wherever you look the statistics seem to be unprecedented. House prices fell at their fastest rate ever in 2008. Sales are lower than at any time since records began in the 1950s. Housing starts are at the lowest level seen in peacetime since the 1920s. For current information, see further details. According to many forecasters,
Speaking to the Observer, Gordon Brown said the Financial Services Authority (FSA) would consider controls on mortgage of more than 100 per cent of a home’s value, and on high multiple mortgages, offering loans of up to six times an applicant’s salary. He said more caution in the mortgage market would reduce chances of a
Mortgage lending has fallen sharply, with approvals for house purchases 60 per cent lower than a year ago. The number of approvals fell by 14 per cent in November to a new low of 17,773, according to figures from the British Bankers’ Association. The number of people re-mortgaging but staying in their existing home also
Business secretary Peter Mandelson has reiterated that the government has no plans to nationalise the banking sector. Speaking yesterday he said that nationalisation was neither ‘necessary nor desirable’ although he admitted UK banking regulations ‘might have been wider and tougher’. He ruled out full nationalisation as happened at Northern Rock saying the majority ownership model
Tenants First has outlined proposals for a public housing strategy to meet the housing crisis. It calls for the establishment of a £3 billion fund to be used for a ten-year regeneration programme that will include the setting up a board of representatives from government, tenants and those marginalised or excluded from housing. Tenants First
House prices will continue to fall by another 10 to 15 per cent and will not recover to their 2007 peak for at least a decade, Legal & General Investment Management warned yesterday. The crash in house prices will be 30 per cent down from their August 2007 peak. The recovery will be delayed as
Banks have been accused of leaving mortgage holders unable to pay their mortgages, as they take money out customers’ current accounts to cover credit card and loan payments. Citizens Advice says there has been a 25 per cent rise in cases in the previous two years, and is calling on banks to scrap the practice
Meanwhile Abbey National, the country’s second-largest mortgage lender, has announced that it will relax lending criteria on its most popular loans tomorrow. It is lowering the minimum deposit required for its best fixed rate deal from 40 to 30 per cent. The move comes as the Bank of England said that recovery in the economy
The Royal Bank of Scotland is offering the public free financial advice from every branch from tomorrow. Around 1,000 customer service staff at the bank have been trained by the Consumer Credit Counselling Service to offer impartial help on areas such as budgeting skills and how basic financial products work. They will not be allowed