Bank of England high-risk mortgage lending cap review

Description The Bank of England is reviewing whether to relax caps on higher-risk mortgage lending in the U.K. housing market. Overview The U.K. monetary authority is studying a possible shift in rules for home loans to higher-risk borrowers. The review centers on whether to ease a cap limiting the volume of high-risk mortgage lending. New evidence separately says the BOE is expected to raise rates, but no mortgage-cap decision has been reported. Why it matters The review could affect borrowers, lenders, housing demand and financial-stability policy by changing how much riskier mortgage credit banks can extend. Key details • The policy under review is a cap on high-risk mortgage lending. • The Bank of England is analyzing whether to relax it. • Easing the cap could increase such home loans. • The evidence does not report a final decision.