Lenders blast ‘suicidal’ cap on mortgages

The proposed cap on mortgage lending the Financial Services Authority proposed yesterday has been described as a ‘suicidal’ move for the housing market. The FSA wants to restrict mortgages to three times a buyer’s annual income, but representatives from the mortgage industry and estate agents have said any further restriction in mortgage lending was ‘adding insult to injury’, causing prices to come down even further and limiting consumer choice.