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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.


Advance Home Loans launches S500 product range

Advance Home Loans, the branded lending arm of mortgage packager AdvantageMortgage Services, has launched its S500 product range funded by Southern Pacific Mortgage Limited. Advance already offers exclusive product ranges funded by Platform, GMAC-RFC, Mortgages PLC, First National and now SPML. Advantage believes that the Advance Home Loans product range will offer its brokers the […]

The Mortgage Mole

Fight nightThe Council of Mortgage Lenders&#39 annual lunch (AKA biggest industry knees-up of the year) once again saw Mole plumb the depths of depravity. And as for Thickett? Well, let&#39s just say that Strategy&#39s finest got into a spot of bother at the after-hours unofficial party down at The Archery. Our man was trying to […]

Property bond launched

Newcastle has developed a three-year building society account in which return is linked to the performance of the Halifax house price index. This short-term property bond offers a return based on 75% of any rises in the Halifax house price index over the next three years and has a full capital guarantee. Research from the […]

Monty Burn announces retirement from broking

Mortgage Watchdog chairman Monty Burn has announced his retirement from broking and is to join Mortgage Strategy as a weekly columnist. Burn, a former MCCB compliance officer, says it is time for him to move on and take a less active role. He says: “I have taken Mortgage Watchdog as far as I can on […]


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