Added: 13 June 2014
Paul Winter, Chief Executive, Ipswich Building Society, responds to The Bank of England's new powers to cap mortgages:
"These new powers need to be used proportionately and carefully. State interference in the mortgage market can have significant and unforeseeable consequences. While nobody want to see a return to the excesses of 2006-2007, government has stoked this housing bubble through a cocktail of subsidised credit in the form of help-to-buy (aimed at increasing the number high loan-to-value mortgages) and a failure to address the supply-side and build homes.
We would not agree with denying individuals the opportunity to obtain a high loan-to-value mortgage as long as it is affordable, which is why we manually underwrite all of our mortgages at the Ipswich Building Society on a case-by-case basis."