Mortgage News
No mention of LTV cap in Osborne speech
Rumours the government is set to cap Loan-To-Values (LTV) at 75% were not substantiated in George Osborne’s first Mansion House speech as Chancellor yesterday.
The LTV cap was reported in The Telegraph and could have been a leak, from the government preparing the industry for bad news later, said Ray Boulger, senior technical manger at John Charcol.
“I never thought there was a realistic chance of a 75% cap. After investigation the cap idea has already been rejected by the FSA,” he said.
“Even if the new Consumer Protection agency ends up taking this on, there has never been any real evidence of major problems in this area although the budget on the 22 June will be the next oportunity to clarify the issue,” he added.
However the government did announce a series of wide-ranging reforms set to transform the UK’s financial regulatory landscape by 2012, including abolition of the FSA.
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