The survey showed that 81% do not believe LTV caps are the way forward, while 19% do feel that caps are needed to control the amount consumers can borrow.
The debate over LTV caps was stirred up once more after FSA chairman Adair Turner revealed that caps are still under consideration during his Mansion House speech on 21 September.
David Sheppard, managing director of Perception Finance, said: “I do not want to see the caps introduced because it takes lending decisions out of lenders hands and forces regulation to control the industry rather than overlook it.
“A healthy market needs lending at all levels and I can only see the caps working if the LTV is lower than the value of the property or if the cap is at 90% LTV.”
He added: “In reality, lenders should be the ones to offer high LTVs provided they are underwritten properly.”
This week’s question is: Do you agree with Bank of England deputy governor Charlie Bean that households should be spending their savings in order to survive the historically low interest rates?
