FSA to consider mortgage capping: Turner

The Turner Review, which was published today, had been predicted to include definite plans to curb high LTV lending. However, the regulator has put off any definitive decisions until Q3 at the earliest. The report stated: "The FSA's paper on regulating the mortgage market will assess the strength of the arguments for and against [the regulation of products]. It will analyse the extent to which customer defaults and bank losses are correlated to either high initial LTV or loan-to-income (LTI), and will draw lessons from international experience. "It will also assess the merits of direct ...