The Liberal Democrat party has pinned Britains debt problems on irresponsible lending.
A Yorkshire Bank survey recently revealed that six out of 10 first-time buyers would take a mortgage of over 5 x their salary.
Liberal Democrat shadow chancellor Vince Cable says: “These findings are extremely alarming.
But we should not blame the borrowers – they have little choice because of the highly inflated price of property.
A great deal of irresponsible lending is fuelling this problem on debt.??”Most responsible lenders would baulk at loaning more than 3 x a persons income.
At five times there is a greatly increased chance of arrears and repossessions.
?”One of the fundamental problems at present is there are no safety nets. In the face of redundancy, mortgage borrowers do not have access to benefits for at least nine months.?
“Meanwhile the mortgage protection insurance market is subject to massive rip offs, and this discourages users.
?”It is time the government woke up to the rising tide of repossessions caused by irresponsible mortgage lending, and talked to the industry about introducing best practice to protect young families buying homes.”