Mortgage Credit (Loans and Bonds) Bill 2012

Public bill · Private Member · Presented

Would establish a tightly regulated mortgage-finance system modelled on Denmark’s, in which banks group mortgage loans and issue bonds to investors, with the payments on each linked to borrowers’ repayments. The Central Bank would set detailed rules, including strict checks on loan size compared with property value and borrowers’ ability to repay. The aim is to make mortgage funding more available, reduce banks’ exposure to wider financial shocks and discourage excessive borrowing and housing bubbles.

Formal long title

Bill entitled an Act to create and regulate a mortgage-credit loans and bonds system, for the purposes of the orderly operation of the market for mortgages, such that economic activity is encouraged and property is improved via a system of mortgage-credit loans and mortgage-credit bonds

Last updated 12 April 2018