Varley admitted that the financial services giant would not be joining the likes of Abbey by offering a high LTV product.
Varley says that Barclays’ LTV is prudent, being just short of 40% and low by industry standards.
He says: “We are not interested in lending 5 x salary.
“We have been prudent in our lending policy. Our non-performing loans and bad debts in mortgages are ex-tremely low.”
But Varley is positive about the housing market in general.
He says: “I regard the democratisation of home ownership in the UK as one of the great success stories of the past few years.
“One of the reasons why people have borrowed a lot recently is because they have become wealthier due to rising house prices. That is perfectly understandable and in my view is a good development.”