'Appalled’ Cable blasts irresponsible lending
Published by Brian Church for 24dash.com in Housing
Study to consider higher housing numbers in West Midlands
Business Secretary Vince Cable is "appalled" that some banks have previously agreed to mortgages five times the income of the applicant and said the housing price boom is getting "out of control".
The leading Liberal Democrat’s comments came before last night’s Mansion House speech by Chancellor George Osborne.
Cable said a "stable level" for mortgage lending was up to 3.5 times salary, the BBC reported, with the desires of would-be homeowners balanced against the overall stability of the economy.
In his speech, Osborne said "homes have to be affordable – whether you’re renting or buying".
The chancellor added: "The only way that can be achieved over the long term is by building more, so supply better matches demand."