What on earth is the Bank Of England thinking?

Bank plans to cap risky mortgages

I will repeat my earlier blogs:

1. House prices will fall

2. There will be more negative equity

3. There will be more repossessions

4. Longer time for saving a deposit 25% means this will slow the economy down and take longer to recover.

5. This will be false economic fiddling. i.e. House prices are not really in inflation,but the borrowings, so the fall in prices will not reduce inflation, but it means that the Bank of England can report a steady inflation figure 

6. The government will be in trouble by not being able to report the economy growing unless they expect people to save more, which causes a problem with money supply.

But mainly the first time buyers will be hit and therefore the market will fall through the floor!!!!

Where does that leave the Middle Class with massive negative equity???