Emma RadmoreThe Financial Policy Committee of the Bank of England is to be given powers to address lending practices in the buy-to-let mortgage sector from early 2017.
This move follows the FPC’s acquisition of such powers in relation to the residential market in April 2015, and a consultation earlier this year on the FPC being granted similar powers in relation to the BTL market.
Under its new powers, the FPC will be able to direct the PRA and the FCA to place loan-to-value and interest coverage ratio limits on BTL mortgage lending, if it feels that it is necessary to address a potential build-up of systemic risks in the market.