New rules to be announced tomorrow by the FSA wrt conditions on which mortgages can be granted will kick the legs out from under the struggling property market and, by definition (since the British economy is underpinned by the property market), the economy.
The new rules will make it much harder for the following to take out a mortgage:
- those over 50
- the self employed
- those wishing to use an interest only mortgage
Thus, at a stroke, the tenuous recovery that might be occurring within the economy has been stymied.
