Oral Answers to Questions
Debate between Grant Shapps and David Crausby
Mr David Crausby (Bolton North East) (Lab)
We all want house building to get moving again and first-time buyers to get on to the housing ladder, but is it not true that 95%, and even higher, mortgages were what went wrong with the housing market in the first place? Will not any attempt artificially to prop up house building with Government subsidy come back and bite us at some point?
The Minister for Housing and Local Government (Grant Shapps)
As I said earlier, the problem with the housing market was sub-prime lending, or lending to people who could not afford to pay back the mortgages, not 95% mortgages, which operated perfectly well in this country for many decades. The criteria for lending are now much stricter, and nobody will get a mortgage who is not properly able to pay it, not only with today’s low interest rates but with interest rates that are clearly likely to rise at some point in future.