The Bank of England is ending one of its policies which has helped lower mortgage rates. However, Help to Buy is unaffected.
The former Co-op bank chairman faces five investigations. But by the time the City watchdog's inquiry reports the row may be all forgotten.
David Cameron says his economic plan is "on track" despite a Bank of England admission that interest rates could rise sooner than expected.
The new Bank of England governor, Mark Carney, has expressed his concern about the lack of new homes being built in the UK citing that there is a strong demand among would-be buyers to get on the property ladder.
It is hoped that strategic decisions made now to try to control mortgage lending will avoid the need for severe and drastic policy actions to be taken if there is a boom-bust in the property market.
Mortgage approvals are running at levels not seen since Northern Rock was nationalised in February 2008.
– The new Bank of England governor Mark Carney speaking in an interview with the Guardian
The right way to do policy - to protect against the boom and bust cycles - is to act early in a graduated, proportionate way and that reduces the probability of having to act in a bigger way later.
Homeowners must sort themselves out to pay their mortgages if interest rates rise because they will not be guaranteed a helping hand, Bank of England governor Mark Carney has warned.
He urged would-be homeowners to think of "the debts you are taking on" and being able to repay a 25 year or 30 year mortgage rather than relying on the value of the house price increasing.
He told the Guardian: "Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher?
"Or are you counting, even subconsciously, on the price of your house keeping going up and if something happens an ability to sell it quickly and not facing the consequences of not being able to pay?"
The Funding for Lending scheme will no longer support household borrowing from the start of next year and will be refocused on small business lending, the Bank of England said today.
Bank of England governor Mark Carney has rebutted claims by coalition ministers that it has the power to "turn off" the flagship Help to Buy initiative, amid fears the scheme could lead to an unsustainable housing bubble.
In a letter to Andrew Tyrie, chairman of the Treasury Select Committee, Mr Carney confirmed that the Bank's Financial Policy Committee (FPC) "does not have a veto on the scheme", though it can make recommendations on it.
The former governor of the Bank of England Robin Leigh-Pemberton, Lord Kingsdown, has died at the age of 86.
Leigh-Pemberton was the governor of the Bank from 1983 to 1993.
Current governor Mark Carney paid tribute to the former bank chief: "On behalf of the Bank and all its staff, both past and present, I extend our most sincere sympathies to Lord Kingsdown's wife and family.
"He made a substantial contribution to economic policy and the financial system of the United Kingdom, both in the public and private sector.
"He will be fondly remembered by current and former colleagues at the Bank of England."
The British public is split over whether a rise in interest rates would have an impact on their personal financial situation.
Of those questioned for the latest ITV News Index carried out by ComRes, 30% felt it would have a positive impact, compared to 31% who said it would be negative:
- Very positive -7%
- Fairly positive - 23%
- No impact - 27%
- Fairly negative - 20%
- Very negative - 11%
- Don't know - 12%
Two-thirds of the British public expect interest rates to rise by 2015, according to the latest ITV News Index carried out by ComRes.
Of the 2,053 adults surveyed:
- 4% thought interest rates would rise by the end of the year
- 37% said it will happen in 2014
- 25% opted for 2015
- 7% believe it will take place in 2016
- 5% felt it will be in 2017 or later
- 23% said they did not know
Earlier today, Governor Mark Carney said the Bank of England will consider making changes to interest rates when the UK's unemployment rate reaches the 7% threshold - it was 7.1% in September.
Mr Carney said there was a "two in five chance" that the unemployment rate will make that threshold by the end of next year.