The Courier & Advertiser (Perth and Perthshire Edition)
Mortgage cap plea
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.