Mortgage lending rules look set to be relaxed as part of the biggest shake-up of UK banking regulation for more than 30 years.
The government is widely expected to announce a major overhaul of financial controls, including easing of restrictions on banks introduced after the financial crisis in 2008 when many banks faced collapse.
The changes, which will reportedly be presented as an example of post-Brexit freedom to tailor regulation specifically to the needs and strengths of the UK economy, will undoubtedly help support prospective homebuyers if home-loans, as expected, become easier to access.
But there will undoubtedly be opposition to the planned changes, with critics pointing to the lessons of the financial crisis.
The plans to ease regulations on financial services are being described as a second “Big Bang” – a reference to the deregulation of financial services by Margaret Thatcher’s government in 1986.
It is understood that the rules forcing banks to legally separate their retail lending arms from their riskier investment operations will be reviewed, as will rules governing the hiring, monitoring and sanctioning of senior finance executives.
The government has already announced it will abolish a cap on bankers’ bonuses and allow insurance companies to invest in long-term assets like housing.
After the financial crisis, large banks were required to separate or ‘ring fence’ their domestic banking operations, including mortgages, from their investment banking operations, that were deemed riskier. But that looks set to change as regulation is loosened.
Here we go, next leg.
Get ready for the family lifetime mortgage. Let your kids have the wonderful option if inheriting your mortgage.
Of course, given that multi-generational living does indeed increase life expectancy this can be promoted as a good thing. Buy a huge house and spend 80 years and two generations paying it off.
Single? Couple? No problem. Let’s do a fifty year mortgage at 100%.
We’ll present the 100% LTV as generosity given that it’s being launched during a high inflation period where you can’t save for a deposit.
Humans – we just can’t f&£king help ourselves. We do the same sh1t over, and over, and over.
The answer is breathtakingly simple, ensure supply exceeds demand. Manage house price inflation and ensure we build enough homes.
Tell the public the facts regarding what percentages are actually built on versus greenbelt.
Prevent land banking in extremis, make it easier for small builders and developers to get in to the marketplace.
So,
Ride through the next 9 months, then get ready for the next leg up.
We’ve yet to see what lobbying will produce in terms of a replacement for H2B too. Expect support for the house builders incoming in the new year.
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Agree with your comments.
The rental market will have a major part to play, more affordable rentals in larger quantity.
This will not happen until the additional 3% stamp duty is abolished.
Worry times ahead with the government seemingly suffering from memory loss of the 2008 era but we will wait to see what they come up with.
Difficult couple of years ahead and we should all have this in mind moving forward. If a short term fix is on the agenda we will suffer medium to long.
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NO DO NOT BU7ILD MORE HOUSES
The wildlife hedgehogs bees butterflies moths etc have ;lived in this country for 1000s years
I want them protected I am a developer myself – you know nothing about land banki8ng it is just a phrase you have picked up and repeat like a robot
The bottom line is since the dawn of time not everyone can afford to buy a house – it is life
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If we don’t build more homes, where will people live?
I think your comments are typical of the eco-zealots who prevent progress. I have no sympathies for developers who have allowed their greed to destroy peoples lives with their poor quality, overpriced housing. As for your comment about not understanding land banking, I would suggest the majority of contributors to this site know exactly what it is, and how the large developers have sat on land until it suits them to build (when the price is right!). That is greed. The government should implement ‘use it or lose it’. If a development has not started within 5 years of obtaining the land, the developer will lose the right to apply for planning approval to develop. No second chance. S106 should be strengthened and rigorously enforced, to ensure developers cannot back out of commitments given to obtain planning approval.
However, I do agree with you final comment. Not everyone can or wants to buy their home. In which case, we need more rental homes, which means building more, regardless of crested newts!
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It will take too long to build enough homes. Meanwhile, we have uncontrolled immigration, and MPs have blocked planning changes. We need a programme like we had after WW2, when temporary ‘pre-fabs’ were built… which lasted 40 years… longer than a Persimmon HTB house! Maybe, something like the Qatar stadium built from containers?
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