Football, Banks And Payday Loans: The Mortgage Solutions News Quiz 21 June 2013

Explanation
In May, gross mortgage lending increased by 21% compared to the previous month. This indicates that there was a significant rise in the amount of money borrowed for mortgages during that period.

Explanation
In comparing his time at the Bank of England to a football game, Mervyn King extended the metaphor by mentioning "red cards and an angry crowd." This suggests that during his tenure, there were instances of disciplinary actions (red cards) and public dissatisfaction or criticism (angry crowd), similar to what can happen in a football match. This metaphor implies that King faced challenges and controversies during his time as governor, which affected the overall atmosphere and perception of his leadership.

Explanation
Saffron is the correct answer because it is the lender that pulled its entire buy-to-let range this week. This implies that Saffron has made the decision to no longer offer buy-to-let loans, potentially due to changes in their business strategy or market conditions. Melton Mowbray and Lloyds are not mentioned in relation to pulling their buy-to-let range, so they are not the correct answer.

Explanation
Potential home buyers tend to save for a deposit for three years before giving up. This suggests that it takes a significant amount of time and effort for individuals to accumulate enough funds for a down payment on a house. Saving for three years demonstrates the commitment and determination of these buyers in their pursuit of homeownership.

Explanation
According to one opponent, the bill on payday lending could end up resembling the Dangerous Dogs Act. This suggests that the opponent believes the bill could be strict and restrictive, potentially leading to negative consequences or unintended outcomes, similar to the controversial and heavily criticized Dangerous Dogs Act.

Explanation
Allied Irish Banks announced this week that it is writing off debts of its mortgage customers. This means that the bank will forgive or cancel the outstanding mortgage debts of its customers. This could be due to various reasons such as financial hardship faced by the customers or as a goodwill gesture by the bank. By doing so, the bank aims to provide relief to its customers and potentially improve their financial situation.

Explanation
Rory Mackenzie, a former soldier, spoke at the Association of Mortgage Intermediaries dinner this week. In addition to this event, he also spoke at the Paralympic Games.

Explanation
The correct answer is The Mortgage Works. The question is asking which lender released its lowest ever buy-to-let product this week. Out of the three options provided, The Mortgage Works is the correct answer.

Explanation
Mortgage-backed securities may have made a comeback because they are a type of investment that pools together mortgages and sells them as a single security to investors. After the 2008 financial crisis, the market for mortgage-backed securities suffered a significant decline. However, in recent years, there has been a resurgence in the demand for these securities as investors regain confidence in the housing market and seek higher returns. This renewed interest in mortgage-backed securities suggests that they may have made a comeback.

Explanation
The correct answer is "Jail" because it suggests that Members of Parliament (MPs) believe that reckless bankers should be punished by being imprisoned. This implies that they view the actions of these bankers as serious enough to warrant criminal punishment rather than just financial penalties or other forms of retribution. Imposing jail time would serve as a stronger deterrent and potentially hold individuals accountable for their actions in a more substantial way.