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PARLIAMENTARY WRITTEN QUESTION
(21 February 2025)

Question Asked

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Bank of England's Financial Policy Committee's 15% cap on mortgage lending.

Asked by:
Mark Garnier (Conservative)

Answer

The flow limit, which limits the number of mortgages extended at loan-to-income (LTI) ratios of 4.5 or higher to 15% of a lender’s new mortgage lending, is set by the independent Financial Policy Committee (FPC) of the Bank of England.

While the Government does not seek to intervene in decisions made by the independent FPC, the Chancellor has recommended that the Committee consider how its decisions support the Government’s priority of supporting home ownership, as stated in her remit letter sent to the FPC on 14 November 2024.


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