Belfast Telegraph

UK Website Of The Year

Bank alert over steep rise in buy-to-let properties

By John-Paul Ford Rojas

Published 09/07/2015

Bank of England officials are concerned over risks to financial stability posed by the buy-to-let market
Bank of England officials are concerned over risks to financial stability posed by the buy-to-let market

The Bank of England is looking at ways to curb risks to financial stability that might be posed by the burgeoning buy-to-let market.

Minutes of the Bank's Financial Policy Committee (FPC) meeting last month showed officials' concerns about the sector that accounted for 15% of outstanding mortgages and 20% of new home loan lending in the first quarter of this year.

They noted that the number of buy-to-let products where loans were worth more than 80% of the value of properties had risen by half in 18 months.

The FPC set out new policies on home loans a year ago to insure against the risk of a steep rise in indebted households and has been given powers to limit residential mortgage lending at high loan-to-value or high debt-to-income ratios.

But these applied only to owner-occupier loans.

The FPC's latest minutes said that given this fact "it was possible for risks to financial stability to be transferred to the buy-to-let segment".

Find your dream home at propertynews.com.

 

Belfast Telegraph

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Read More

From Belfast Telegraph