Liberal Democrats in Business

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Lib Dem Vince Cable MP Comments on Increasing Mortgage Multiples

1.51.57pm BST (GMT +0100) Wed 14th Apr 2004

The Liberal Democrats released figures today showing that one in ten borrowers has taken out a loan worth four times their salary or more. Vince Cable MP, Liberal Democrat Shadow Chancellor, said: "This type of lending by banks and building societies is simply recklessly fuelling the housing boom."

"Many of those borrowers will find themselves in negative equity when the housing market turns down and interest rates rise. "Gordon Brown must urgently address the failures that have allowed banks to lend irresponsibly and fuel unsustainable levels of debt."

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