During an interview on The Andrew Marr Show, Turner said the FSA is unable to enforce maximum limits on loan to value or loan to income ratios for mortgages.
When asked by Marr “will you tighten the rules on so-called income multiples?”, Turner said: “Politics would have to make that decision. There are important arguments against as well as for, and we are going to produce a paper by the third quarter of this year to discuss the specific issue of whether there should be limits – either loan to value ratios or loan to income ratios.
“So that is something which is clearly on our agenda, but I do think it’s something that the whole of society and politics will want to debate. It’s not something where we have either legal power or where it would be for us to simply say okay, we’ve banned them.”