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The Bank of England's new powers to cap mortgages - comment from Paul Winter

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."

Your home may be repossessed if you do not keep up repayments on your mortgage.