Reckless lending – Legislation initiative welcomed

The Financial Regulator’s annual report has called for new powers to oversee the worrying increase in mortgages being provided to sub prime borrowers who have defaulted on loans in the past.

Encouraging such borrowing is not the way to keep the economy going, but a recipe for financial disaster. The American economy has been in some trouble with the dollar falling recently over the vulnerability of its mortgage market.

Sub prime lenders specialise in providing mortgages and term loans to people who have trouble in getting loans from the main banks.