The Bank of England (BoE) has recently sought increased powers to further curb mortgage borrowing.

It was felt by some that the government-launched Help to Buy Scheme was impacting on house prices. The Bank’s Financial Policy Committee responded by announcing that as the scheme only accounts for 5% of mortgages approved, it had not made a noticeable impact on house prices.

The BoE also cited the fact that the areas with the largest house price growth, such as London, were not the places in which Help to Buy had been implemented the most.

The Governor of the BoE, https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Carney said that the fee applied to lenders and the upper limit maximum of £600,000 of the scheme remained appropriate. This was in response to the opposition, who feel that it has guided some people to borrow more than they can afford, which in turn could delay the country’s financial recovery.

Following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review in April 2014 – which saw enhanced regulation placed on financial institutions to prevent irresponsible lending and tougher lender criteria for borrowers – the Financial Policy Committee is now seeking permission for the Government to be able to reduce risky lending. It is requesting the power to be able to enforce certain loan-to-value and debt-to-income ratios, and apply this to the buy-to-let and residential markets.

It is important when considering a new mortgage to ensure that you understand the options that are available to you. By seeking the advice of a professional who has undertaken and completed their CeMAP training, you be confident that you will receive open and transparent advice that is appropriate to your individual needs and circumstances.

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