Lending mortgages to home buyers with no deposit is 'immoral' and akin to giving them a 'loaded gun', according to the deputy chief executive of the Royal Bank of Scotland.
The comment by such a senior banker increased pressure on the Financial Services Authority amid calls by Gordon Brown, the prime minister, to ban 100% mortgages.
The City watchdog said this week that it would look at restrictions on mortgage lending, based on income multiples or loan to value ratios, in a consultation exercise this year.
Gordon Pell, of RBS, told MPs yesterday that 100% mortgages were 'bad banking' and not in the interests of consumers.
The bank, which is now majority owned by the state, would be content if regulators im-posed stricter limits, he told the Scottish affairs committee.
Financial Times
No comments yet