Mortgages Uncovered

The primes minster signaled the of 100% mortgages when he spoke to directly to building societies and high street banks in encouraging more “responsibility” within the housing market.

The Observer ran an article where Gordon Brown suggested to first time buyers that they will have to save more money before they get on to the housing ladder because he needed to reduce the chances of another market crash.

Mortgage lenders are possibly also facing a curb on the high multiple mortgages which are offering to lend money at six times the applicant’s annual salary.

“We want to see the reinvention of the traditional savings and mortgage bank in Britain – making loans on prudent and careful terms, not just to people with large deposits but to first-time buyers and those on middle and modest incomes who wish to buy their home but who have not been able to save a huge deposit,” Brown writes. “But we have got to get the balance right between serving homeowners better and encouraging responsibility in the market.”

Gordon Brown also argued that “more responsibility” in banking would ensure that trust is restored and will unlock more lending and business.

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