Lib Dems condemn increasing income multiples

One in 10 borrowers have taken out a mortgage loan worth four times their salary or more, figures released by the Liberal Democrats suggest.

Vince Cable MP, Liberal Democrat shadow chancellor, says: “This type of lending by banks and building societies is simply recklessly fuelling the housing boom. Many of those borrowers will find themselves in negative equity when the housing market turns down and interest rates rise.

“Gordon Brown must urgently address the failures that have allowed banks to lend irresponsibly and fuel unsustainable levels of debt.”

The figures also show that one in 20 borrowers have a loan of five times income or more, and one in 50 is borrowing more than seven times their income.