Bank of England eases curbs on risky mortgages

The Bank of England has eased a curb on risky mortgages that are large relative to a borrower’s income, amid signs that Britain’s housing market has begun to cool.

In June, the Bank of England’s Financial Policy Committee recommended that “as soon as practicable” no more than 15% of mortgages should be at, or greater than, 4.5 times a borrower’s income.

The bank put out draft rules to public consultation in June to implement this loan-to-income ratio and yesterday published the final version with some amendments.