'No need' for Bank of England powers

by Christopher Evans

There is "no need" for the Bank of England to have the power to limit mortgage lending by banks.

This is the view of Ray Boulger, senior technical manager at mortgage advisor John Charcol, who said: "From what I have seen at the moment, I am concerned because I am not confident it will actually make the situation better.

"The market has effectively exercised control of the property market by restricting the availability of mortgages and it is hard to see that changing any time soon."

His comments came after the chancellor George Osborne delivered his first Mansion House speech yesterday (June 16th), confirming that the Bank of England will regulate financial institutions.

Mr Osborne also announced that the Financial Services Authority will be abolished and the government will create a new independent Financial Policy Committee.

Decisions over the allocation of credit to consumers could affect DIY house sellers who are looking to reassess their mortgage before they move.

Published on: June 17, 2010

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