Brendan Burgess
Founder
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It will have very little impact on anyone, if house prices stay at their current levels.
Some mortgages which would otherwise be granted would fall foul of the limits, but the lenders can still lend the money using the 15% they are allowed to use.
So, I expect that they will probably achieve their objective of preventing a housing bubble developing.
If house prices rise but incomes and savings don't, many people will be unable to buy, thus dampening the bubble. If house prices and incomes stay at the present levels, then very few people will be prevented by these regulations from buying their houses.
Some mortgages which would otherwise be granted would fall foul of the limits, but the lenders can still lend the money using the 15% they are allowed to use.
So, I expect that they will probably achieve their objective of preventing a housing bubble developing.
If house prices rise but incomes and savings don't, many people will be unable to buy, thus dampening the bubble. If house prices and incomes stay at the present levels, then very few people will be prevented by these regulations from buying their houses.