Mortgage loan-to-values (LTVs) should be capped to control individual lending, according to the former cabinet secretary Lord O'Donnell.
In a report by the Financial Times, Lord O'Donnell claims that the Government should take inspiration from Canada and impose stricter lending criteria.
He believes that the introduction of 80% LTV mortgage caps would be an effective measure to rein in lending.
In the interview, Lord O'Donnell states: " I think we should debate whether there should be regulations."
"I personally would urge the government to think about what a right level of loan-to-value ratio is. We should not encourage a move back to where it is very easy to borrow a lot."
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