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The first buyer of England Bank, even if the government’s support to stop the restrictions on the loan of high -risk mortgages, which causes more of their hometowns and plans to judge policies. I warned that I can’t help.
Andrew Bailey told MPS on Wednesday that he was very pleased with the British mortgage loan restriction, “I am very pleased to have a very open public debate.” He said that the “better results” provided by the rules should be considered. Recent defaults in shock.
“They helped to avoid the creation of large tail loans. It is the real type of the past when there is an inevitable period of recession or shock when the economy is inevitable. It turned out to be a problem, “he said. “So I think it was useful.”
His comments show that BOE recently went in November to further alleviate British Banks’s mortgage loan. BOE’s sister regulation authorities proposed that the financial Action Authority would proceed earlier this month.
Last week, UK Prime Minister Rachel Reeves supported the FCA’s proposal, and last week, Financial Times said, “Absolutely opened an idea to support the ownership of the house and help the working families to get on the house ladder. It is being done. “
Reeves and Prime Minister Keel will help all British regulators, including BoE and FCA, to help the government will revive the stagnant economy by relieving the burden of business rules. I urged to do.
Bailey told the Ministry of Finance that it supported the promotion of priority items to promote growth, but with the main purpose of maintaining BoE’s financial stability. There is no off. ”
British mortgage loans are managed by the Central Bank’s Financial Policy Committee and FCA. Most of the banks were introduced after the state of the 2008 financial crisis.
Recommendation
The FPC restricts banks over a specific scale and lends more than 15 % of mortgages to 15 %. It was applied to a smaller bank due to the change in the lending value of this restriction in November.
The FCA has demanded that banks will conduct a mortgage applicant’s affordable tests to confirm that if the interest rate rises in the future, there is still room for monthly repayments. BoE abandoned the same affordable price test in 2022 due to overlapping with the FCA rules.
FCA, in response to the government asking the regulatory authorities to ask the regulatory authorities for growth promotion, “simplifies the lending and advice rules of mortgage loans and the ownership of the family. He said that he would start a balance discussion and default level.
Bailey stated that the potential advantage of further alleviating these limits needs to be balanced by maintaining them. He also warned that it might be almost useless to help the first buyer for the first time, which is often difficult to provide deposits that require the main obstacle to buying a house.
“In all investigations conducted, you can get deposits if you ask what the main obstacles to enter the mortgage market,” said Bailey.
Nathanaëlbenjamin, an executive director of BoE’s financial stability strategy and risk, states that MPS has a “sufficient headroom” before the bank reaches a mortgage loan limit. The new mortgage loan buyer was the highest level for 20 years.
He also warned that relieving restrictions without increasing the supply of new houses would be more likely to raise housing prices.
