We have seen the demise of high LTV, self-cert and buy-to-let deals over the past year or so, so why do we now need a White Paper saying that’s the way forward?
OK, so we all know that some big-wigs at the top of big banks got profit crazy and made some big gambles that never paid off.
Since then we have completely rebuilt lending criteria, withdrawn high risk products, killed off the adverse credit market and even gone so far as to reduce commission payments to brokers to ensure best advice is given.
With Treating Customers Fairly the industry is in better shape than ever and this needs to be acknowledged as we edge out of recession. Let’s stop wasting money holding meetings to state the obvious and start investing money where we need it most.
We need government-backed mortgage indemnity guarantees to get the property market going again and get people on to the property ladder.
We also need cash to support developers with government-backed shared equity and shared ownership and we also need developers to feel confident that money is available for mortgages on new-build properties.
We need to start building again soon or demand will outstrip supply and the next property bubble will be born.