The exceptions should be based on the amount of the loan in excess of the limit

Brendan Burgess

Founder
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38,129
I will be making the following point in my submission:


The exceptions should be based on the amount of the loan in excess of the limit and not the entire loan

At present, a lender is allowed to give 15% of new loans in excess of the LTV limits
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Rather than having 15% of loans in excess of the limits, the amount of each loan in excess of the limits should be limited to, say, 2% of the loan book.

This would encourage lenders to make more loans at 92% and fewer loans at 100%.
 
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