Oh Now You tell Us

“I said not to sit in that electric chair when it’s plugged in and you’re just wet from a swim,” is basically what the the FSA is saying when it sagely warns there are three signs that some mortgages may be difficult to maintain:

The mortgage is over 25 years.

It is for more than 90% of the property.

The amount borrowed is more than 3.5 times the person’s income.

You don’t say.

So where were they when the market was being pushed up by wallys taking out massive mortgages by lying about their salaries?

Thanks guys.

Next week sage advice about if a bank lends to a lot of people who can’t pay back the money then it’s a bad idea.