Proposed cap on mortgage lending by FSA is ’suicidal’, say property experts
A proposed cap on mortgage lending, limiting how much money home buyers could borrow, has alarmed property experts, who have warned the move could be “suicidal” for the housing market.
Proposals to limit how much banks and building societies can lend home buyers – restricting mortgages to just three times a buyer’s annual salary – are one of the ideas expected to be published by the Financial Services Authority (FSA) this week.
As part of a wide-ranging package of announcements for banking regulation following the near-collapse of the financial system, Lord Turner, chairman of the FSA, will also suggest a ban on 100 per cent mortgages.
