Mortgage lending could be ‘capped’ to stop borrowers taking out insecure loans, according to a senior Bank of England official.
The Bank’s Deputy Governor Charlie Bean said ‘direct constraints’ may be needed to restrict access to credit.
This could mean homebuyers being forced to put down sizeable deposits - for example, between 10 and 25 per cent of the home’s value - before being approved for a mortgage by their banks or building societies. (AtW's comment: FFS, wasn't that amount more or less just recently?)
It is the first time that a senior official has indicated that the Bank may intervene directly with new rules to stop risky lending.
It is one of the possible new powers handed to the Bank under the government’s proposed restructuring in its Financial Services Bill due later this year.
More: Homebuyers could be forced to pay bigger deposits in plan to cap mortgage lending | Mail Online
The Bank’s Deputy Governor Charlie Bean said ‘direct constraints’ may be needed to restrict access to credit.
This could mean homebuyers being forced to put down sizeable deposits - for example, between 10 and 25 per cent of the home’s value - before being approved for a mortgage by their banks or building societies. (AtW's comment: FFS, wasn't that amount more or less just recently?)
It is the first time that a senior official has indicated that the Bank may intervene directly with new rules to stop risky lending.
It is one of the possible new powers handed to the Bank under the government’s proposed restructuring in its Financial Services Bill due later this year.
More: Homebuyers could be forced to pay bigger deposits in plan to cap mortgage lending | Mail Online
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