Prime Minister David Cameron has said today that banks and building societies are becoming to strict in their lending regulations.
The PM said that the over cautious behaviour of our high street lenders is preventing the housing market from progressing.
These comments come after a report has revealed millions of mortgage holders are using credit cards to meet their payments.
The restrictive mortgage rules were introduced by the Banks and Building societies after it was revealed that millions of consumers were sold mortgages that they simply could not afford.
The Prime minister is calling out to lender to return to ‘respectable’ lending in order to stimulate the growth that the British economy needs.
‘In a way the pendulum has now swung too far the other way,’ he said.
‘If you are a single person, you are earning a decent salary. You go to the bank or building society, you are actually quite a good risk – they won’t give you 80 per cent of the value, they won’t give you four times your salary.’
He added: ‘You need a housing market where people are able to sell and move.
‘The housing market has become very stuck and we’ve got to get it moving again.’