BOE could step in if Banks underestimate risky loans.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10958623/Bank-of-Englands-Andrew-Bailey-says-regulator-could-step-in-if-banks-underestimate-risky-loans.html

That is what Banks do all the time ....underestimate (deliberately I think) the ability of the Mortgagee to repay the Loan.There should be a limit on the price of a house in the U.K. Loan: initial purchase price of the House, add...any money spent on improvements to the Property , add... the current cost of living index . We know that in London prices have gone through the roof, because Oligarks have the money to pay outlandish prices , but something needs to be done because tthhe Housing Boom/Bust affects us all.