Cap mortgage limit at 3.5 times income: IPPR

The report, Forever blowing bubbles, said damage had been done to the UK economy by four housing bubbles in the past 40 years. It calls on the government to “hold firm” in the face of industry lobbying and introduce tough mortgage measures to avoid another bubble. Nick Pearce, IPPR director, said: “We need tougher mortgage market regulation from the Financial Service Authority, especially caps on loan to value and loan to income ratios.” The IPPR’s report showed the UK had the highest LTV ratio of any OECD country before the crisis, apart from the Netherlands, and said this was one...