Should it really become harder to borrow?

WE all need to borrow responsibly. But, coming just after the banking crisis, is this the time for Government to tighten banks’ and building societies’ borrowing conditions? Banks are heavily over-extended in property. Who can move to find work when they are in negative equity?

A whole new sector of people, about 30 per cent of borrowers, will no longer be able to borrow the same products in the future that they have now. Ironic, isn’t it? If they want to move south their lender will be lending on a property more likely to rapidly increase in value. Rail fares go up and up. Petrol prices are at an all-time high. Is long distance commuting an option today? With banks and building societies being so over-exposed in the property market is this really the time for borrowing to become harder? Won’t that depress property prices even more in areas of high unemployment, trapping more people?

No wonder MPs think mass immigration is a good thing. Their policies make it harder for their own people to get on their bike looking for work. Why should MPs care? They already have a London home. If MPs cut the high cost of season tickets, add a carriage to every train and offer massive discounts on off peak fares, many of these problems can be solved.