Spotted by Lola. From This Is Money:
The Bank of England is considering easing mortgage rules in a move that could boost house prices.
The central bank, led by Governor Andrew Bailey, will announce next month whether lenders can increase the volume of large mortgages they dish out. Banks are limited in the home loans they can give to borrowers who need more than 4.5 times their salary. These customers must represent no more than 15 per cent of the new loans that banks issue.
The Bank of England referenced the rules in an update last month, saying 'there has been little evidence of a deterioration in lending standards or a material increase in the number of highly indebted households'.
a. This will all go horribly wrong again in 2025-26, just like it did in 2007-08. And in 1990 and 1973, although those busts weren't as bad as 2007-08 because back then we still had some Georgism Lite policies keep a bit of a lid on prices.
b. They appear to be perfectly aware that easing loan restrictions push up prices by the same amount, so actually it doesn't help anybody onto 'the ladder', they buy the same house but with more debts.
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