Cable warns Government of housing market crash
Housing affordability for people with new mortgages reached its lowest level for 15 years in October as borrowers had to spend significantly more of their income on mortgage costs than they did at the start of this year.The Council of Mortgage Lenders yesterday said first-time buyers spent 20.6 per cent of their income on mortgage interest in October, up from 20.4 per cent the previous month. The latest data showed that total lending had so far remained robust, but this reflected still high house prices and the large numbers of mortgages granted before the full effects of the credit squeeze were felt.