The Courier & Advertiser (Perth and Perthshire Edition)

Mortgage cap plea

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The Bank of England should consider capping the loan-to-salary ratio for mortgages to prevent a house price bubble, Lord Heseltine has suggested.

The former deputy prime minister told BBC Radio 4’s The World This Weekend that mortgages of up to 5.5 times salary could create a “dangerous situation” when interest rates rise from their historical­ly low levels.

But he said that the Bank would need to make sure that any action it took did not “choke off” enthusiasm in the market.

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