Mortgage deals 'should be capped' - papers

Sir John Gieve used his final speech before stepping down to indicate that the authorities must consider imposing more direct controls on the amount banks can lend to their customers. This might include caps on the loan-to-income and loan-to-value ratios - the key metrics banks use to work out whether to lend to prospective buyers. He said: "In theory, a ceiling on these ratios could have provided an effective brake on the excesses of the last boom. "If problems are concentrated within the property market then caps on loan-to-income and loan-to-value ratios might be effective." Sir Jo...