Britain seeks to give BoE new mortgage powers

Britain’s government published proposals to give the Bank of England new legal powers to control residential mortgage lending yesterday, but said it wanted more evidence before deciding on a BoE request to regulate lending to landlords.

The proposals are in line with finance minister George Osborne’s desire to give the BoE greater oversight of residential mortgage lending to reduce the risk that the housing market could overheat and destabilise Britain’s economy.

“The government is proposing that the Bank is granted powers of direction for loan-to-value limits and debt-to-income limits for owner-occupied mortgages,” Osborne said.