IMF urge the UK government to cap mortgage loan to value levels.
The International Monetary Fund have called on the the UK government to introduce a mortgage loan to value cap.
Earlier in year the chancellor George Osborne announced a proposed plan which could allow the BoE Financial Policy Committee to introduce a cap to mortgage loan to value levels during housing booms
While the Bank of England has been offered powers to be able to control lending it does not seem keen to take on this regulatory role. In fact the Financial Policy Committee has advised that it believes such powers could greatly disadvantage UK buyers.
The Bank advises it is therefore at present not prepared to accept powers for regulating UK mortgage lending.
The IMF advise that this is a mistake as the BoE needs to control both loan to income rations and loan to value levels, to prevent aggressive lending and future property boom and bust. It stated in its most recent report that powers to limit lending are desirable and it is essential for the Bank to take a constructive role.
The BoE in a venture with the government, has started to release cheap funding for UK mortgages which is leading to a reduction in rates.
If you are looking for a cheap mortgage you are advised to contact a skilled adviser at independent 'whole of market' broker Deal Direct.
Act now and secure a great deal, failure to act could lead to the cheapest rates becoming over subscribed which would mean your missing out on a cheap offer.
Contact Deal Direct today.
