I do not believe all 125% products have been issued irresponsibly. As previously stated in a number of threads, lots of people have these products with no issues at all.
I do believe, however, that where the products have been supplied without a true investigation into the likelihood of the borrower falling into difficulties with repayments later is irresponsible. As none of us are able to see into the future the only way is to look at what has gone before or what is happening in similar markets in other countries.
The current restrictions being placed on the majority of products are those products that are aimed at the sub prime or medium to heavy adverse markets.
Too much has happened for lenders not to take action. House prices are falling, rates have risen and to offset future problems lenders are starting to restrict what is available. A damn good move in my opinion.
There are, as Andrew quite rightly states, a lot of people who are going to feel the pinch, but remember they were all provided products that were available at the time, based on the information available at the time. No one knew the market was going to turn the way it did, no one knew rates would go up or that house prices would start to stall, and people caught with the end of their fixed rates are going to suffer. But for responsible lenders to do nothing, would be irresponsible.
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