Desperate Rachel23 Jan 2025 06:33
“Thousands more families could lose their homes every year if mortgage rules are relaxed to help first-time buyers, Rachel Reeves has been warned.
Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said a push to ease restrictions on mortgage lending could see the number of home repossessions double.
In a select committee hearing on Wednesday, Mr Rathi said: “If the numbers went up from 1,000 to 2,000 … would that be an acceptable outcome here in Parliament, or would you say to us: ‘Why on earth have you let it go up by 100pc?’”
It comes after the Chancellor backed plans put forward by the FCA to loosen mortgage rules first introduced in the aftermath of the 2008 financial crash.
The FCA currently restricts banks ability to lend mortgages that are valued at more than 4.5 times a borrower’s income, while also requiring lenders to carry out affordability tests to ensure customers can deal with rising interest rates.”