Former cabinet secretary calls for LTV capping - Mortgages - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Former cabinet secretary calls for LTV capping

Former cabinet secretary calls for LTV capping

Category: Mortgages

Updated: 12/10/2012
First Published: 12/10/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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."

What Next?

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.