UK Business Secretary Says Housing Boom Must Be Stopped

Action must be taken to stop the “housing boom” in parts of the UK getting “out of control”, according to Business Secretary Vince Cable.

He said he was “appalled” that some banks had been lending five times a mortgage applicant’s income, suggesting a “stable level” was up to 3.5 times.

The desires of potential homeowners should be balanced against the stability of the economy, he added.

His comments come ahead of a major speech from the chancellor.

George Osborne, in his Mansion House speech, is expected to say how the Bank of England could tackle any financial instability caused by house price rises.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza