Mortgage repayments

Meeting: 
MQT on 2016-10-19
Session date: 
October 19, 2016
Reference: 
2016/3831
Question By: 
Tony Devenish
Organisation: 
GLA Conservatives
Asked Of: 
The Mayor

Question

Fearing a property bubble Sweden's policymakers acted in June and introduced mandatory mortgage repayments. Anyone with a mortgage or refinancing loan worth more than 70% of the property's value must pay off a minimum 2% of the property value each year. Would the Mayor consider lobbying the Government to consider a similar approach?

Answer

Answer for Mortgage repayments

Answer for Mortgage repayments

Answered By: 
The Mayor

I am unconvinced of the case for introducing such an approach in this country. Unlike in Sweden, interest-only mortgages account for a small and declining share of outstanding mortgages in the UK, and a tiny share of new ones.