Liberal Democrats in Business

News and views from the Lib Dem Trade and Industry Team, Vince Cable and Brian Cotter

Homeowners Need Protection Against Irresponsible Lending

11.38.18am GMT Thu 25th Mar 2004

Vince Cable MP, Liberal Democrat Shadow Chancellor, commenting on new figures from the British Bankers' Association, which show approvals of loans for house purchase up 56% in value on the year, said: "Soaring mortgage lending is fuelling an unsustainable house price bubble."

"Large numbers of people are gambling on the house price boom - a gamble they may regret if house prices start to fall."

"In the Budget the Chancellor failed to take responsibility for the level of lending by banks. It is time the Government took action to protect ordinary homeowners against irresponsible lending."

Ends

Notes

1. Gross lending in February was up 16% on February 2003.

2. Loans for house purchase in February were up 27% by number and 56% by value on February 2003.

3. Seasonally adjusted net loans were up 11% on the same month last year.

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