The Institute for Public Policy Research (IPPR) has published a report, which argues that Mandatory guidelines for mortgage lenders are needed to ensure that the mistakes that resulted in the credit crunch are not repeated.
The key recommendations are that:
- A limit on house price-income ratios of possibly to 3.5 times joint incomes;
- A halt to self-certified mortgages which do not require documentary support;
- The restriction of buy-to-let mortgages to a maximum of 75% of property value.
