Prime Minister Gordon Brown has called for an end to the 100% mortgage loan
and a return to more prudent lending practices in the wake of the financial disaster associated with such loans. The suggested ban is designed to minimise the chances of another property price crash and the Financial Services Authority (FSA) has been asked to look into the proposal of banning these loans.

This has led to several comments pointing out that it was while Gordon Brown was Chancellor that these high loan to value mortgages were taken up by thousands of individuals and that his call for a ban has come at a time when such mortgages no longer exist anyway.

Many first time buyers are disappointed by the proposed ban as they were waiting for the return of these products to get themselves on the property ladder.

The Council of Mortgage Lenders (CML) questions the policy, pointing out that any policy regarding such loans should, amongst other points, not ignore the fact that many people top up there mortgage borrowing with second mortgages and unsecured loans at much higher rates.