MOVES to tackle reckless bank lending could shatter the home owning dreams of millions of Britons and trigger a slump in house prices.
That’s the damning verdict of industry body the Council of Mortgage Lenders in a scathing attack on City watchdog the Financial Services Authority yesterday.
The FSA sparked controversy by planning to scrap interest-only mortgages, slow the application process and effectively cap how much people can borrow from next year.
Michael Coogan, CML director general, accused the FSA of overstepping the mark, with implications for generations to come.
“The golden age of home ownership is over for the moment”, he said, with the credit crunch already leading to a sharp drop in lending.
And he warned this mortgage famine could become permanent under the FSA’s “fatally flawed” plans which would “stifle innovation and opportunity”.