It said: “There are side issues to consider that should not get lost, despite the inherent appeal of a simple policy such as this to mitigate risk and encourage responsible borrowing. In particular, what about negative equity products for borrowers who want to move house but whose own house price has fallen? What about shared equity loans made to the affordable housing sector, where borrowers are not asked to pay a deposit? And what about the fact that people may simply "top up" their borrowing with second mortgages or other unsecured loans on more expensive terms?
“These issues all need to be considered in deciding the right regulatory approach to 100%+ mortgages in the future.”
