Action must be taken to stop the "housing boom"
in parts of the UK getting "out of control", according to Business
Secretary Vince Cable. He said he was "appalled" that some banks had
been lending five times a mortgage applicant's income, suggesting a
"stable level" was up to 3.5 times. The desires of potential homeowners should be balanced
against the stability of the economy, he added. Mr Cable said that banks
"must not throw petrol on the fire" by giving home loans that ran at
high multiples of applicants' incomes, although he pointed out that the
"boom" was only being seen primarily in the South East of England.
Read more on the BBC website.
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