§ Mr. FlightTo ask the Chancellor of the Exchequer if the Bank of England has made representations to UK mortgage lenders on current average mortgage income multiples. [15928]
§ Ruth KellyResponsibility for the prudential regulation of banks and building societies now rests with the Financial Services Authority (FSA). In addition, the FSA is taking on responsibility for regulating mortgage lending. Both the Government and FSA consider it important that mortgage borrowers should not be exploited by lending in circumstances where they are self-evidently unable to repay through income but have no alternative repayment plans. The FSA is therefore setting rules in respect of responsible lending. Lenders will be required to show that they have taken account of a borrower's ability to repay the loan before entering into a regulated mortgage contract with him.