This week the accolade goes to Duncan Jones for his response to the post: UK Finance chief warns BoE preparing to take action on ‘cheaper, riskier’ mortgage lending.
He said: “There is no doubt that current lending criteria have a whiff of pre-2009 lending conditions and still with wafer thin margins.
“As I explain to clients, easy lending is responsible for driving up property values and while the interest rate is currently favourable when compared with say the early 1990’s, capital values are anything but.
“This leaves the potential for rate rises in the future that could wipe borrowers out.
“In the meantime, seemingly affordable mortgages have meant further credit has been sought to fund car purchases.
“This is likely to distort the car market with optimistic residuals not being realised, which could plummet lenders into trouble. Then there is the growth in credit card balances.”
