PM calls for end to 100% mortgages

Speaking to the Observer, Gordon Brown said the Financial Services Authority (FSA) would consider controls on mortgage of more than 100 per cent of a home’s value, and on high multiple mortgages, offering loans of up to six times an applicant’s salary. He said more caution in the mortgage market would reduce chances of a future property crash: ‘We do want to see the reinvention of the traditional savings and mortgage bank in Britain for loans to be made on prudent and careful terms’.