You report that banks are offering mortgage deals of up to 95 per cent of market value and charging less (“ Banks loosen rules in hunt for growth”, August 27). At a time of increasing risk, intense competition is leading lenders to take smaller margins. You quote a senior bank executive as warning that everyone is chasing business and that great caution is needed or it could cost a lot.

It is barely 10 years since we last experienced this scenario and presumably not long before 100 per cent (plus) loans are available.

Last time, governments had the resources to bail out the biggest lenders at taxpayers’ expense. If lenders knew there would be no rescue this time, would it halt the march to the cliff edge?

Richard Ross
Edgware, Middx, UK

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