"The FSA, it would seem, has been looking across the channel to France for direction when drafting its proposals,” he said. “The French banks have carried out affordability tests for all types of borrowing, whether buy-to-let or owner-occupier, for years and if you look at historical house price trends in France there is a far more gentle variation in prices as opposed to the booms and busts seen in the UK.
"French banks are willing to let you spend 33% of your gross income on servicing all your borrowings, but that's it. It may seem a bit hard to stomach at first to UK borrowers who have been indulged over the years, but French lenders — and borrowers — have ridden out the credit crunch and recession considerably better than their UK counterparts."
