Government warned for 3 years lending changes would create issues

[Praktica]

whineys got this.
the banks make money from lending. they want to lend.
when they see laws that might inhibit their capacity to earn they speak.

my daughter brought a property two years ago that she probably wouldnt qualify for today.
so again its the bottom end of the market being restricted even though they arent the ones driving up the prices.
its hard to get a good credit history when no one can give you credit.
its easy to buy more houses when youve got a house, and the interest rates are cheap.
this is a catalyst, one of many that stem from over regulation of the entire process.
most markets operate more efficiently under laisses faire policy.

It seems that the banks have been hamstrung by the silliness of the new laws. Being sure of your identity and that your deposit has come from legal sources is fine. But to tell mature people with a small mortgage that they can't add to it to rebuild their unsafe deck is ridiculous. As is insisting that a pregnant woman must go back to work within 90 days of giving birth. Both articles I've seen in the last week.

Financial transactions should be business-like and straightforward. Your income is "$x" so you can afford to borrow "$y" and the equity you have to cover the loan is $z. If the equation works you should get the money. If not you don't. And if your circumstances change so that you can no longer afford it, then you know you have to sell.

It's actually no easier to buy more houses when you already have one. It used to be, but those days are gone and it's now much harder than it was. That's part of why there's such a shortage of rentals, which are needed more than ever because people can't get mortgages. And so the circle goes around.

Where do these sob stories come from, and how representative are they of peoples' experience? Why is this campaign being run now? Are some with a lot of vested interest in high property prices fearing a drop in their income?