Emailed in by Lola from FT Adviser, subject line 'FFS'.
The Bank of England would expect to loosen its mortgage affordability rules if the UK experienced strong house price growth, it has said.
In a working paper titled Modelling the Distribution of Mortgage Debt, out this week (July 3), the central bank tested the regulation of affordability in two different scenarios — a ‘business as usual’ one and one it named the ‘upside scenario’.
So they not think about what they have just written?
You could just as well turn that first part round and state:
If the Bank of England loosens its mortgage affordability rules, the UK will experience strong house price growth.
To all intents and purposes, credit availability and house prices (aka 'The Housing Crisis') are the same thing.
Debate Magazine
