View more on these topics

FCA eyes buy-to-let clampdown

UK-Houses-Building-Homes-700x450.jpg

The FCA is considering tightening its control on buy-to-let lending, according to a letter sent to smaller lenders.

The regulator is concerned that buy-to-let lenders solely governed by the FCA could present a risk to the wider financial system, according to Sky News.

The letter says the FCA is reviewing the risk that these lenders could be using substandard underwriting, and how this affects consumers and the rest of the economy.

In March, the Prudential Regulation Authority published a consultation paper on new minimum underwriting standards for buy-to-let. The results are due in September.

But the FCA is concerned that lenders not regulated by the PRA could therefore pose a risk that other firms do not.

In July, a Bank of England report said the body was worried the actions of buy-to-let investors could harm the economy.

It said buy-to-let landlords had the potential to “behave procyclically, amplifying movements in the housing market”.

An FCA spokeswoman declined to comment.

Recommended

Prudential-Logo-700x450.jpg

Pru’s UK profits rise after quiting annuity market

Prudential UK’s profits rose 8 per cent in the first half of 2016 following its decision to exit the annuity market because of stringent capital requirements. Results published today show operating profits in the life business increased to £473m, up from £436m in the same period last year. Pru says “management actions to support solvency” […]

Stock-Market-FTSE-Stockmarket-700x450.jpg

M&G outflows triple to £7bn

M&G saw outflows of almost £7bn in the first half of the year compared to £2.3bn a year ago. In its half year results, published today by parent company Prudential, the business said the “continuation of net outflows” impacted operating profits, which dropped by 10 per cent to £225m from £251m. In particualar, outflows almost doubled […]

Payment-Fine-Currency-Money-700.jpg

Investment Association hits back at ‘hidden fees’ critics

The Investment Association has hit back at critics of fund management hidden costs as it finds “zero evidence” that funds’ returns are affected by hidden fees. In a report, published today with research firm Fitz Partners, the investment trade body has analysed 1,350 active and passive funds and estimated average transaction fees across the IA […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. The tighter the better. Housing may then become more affordable for the first time buyer. Property transactions have slowed. Banks sensibly are in no hurry to reduce their mortgage rates, so perhaps the result will hopefully be falling property prices. This may then turn into a virtuous circle as those with high LTVs, will probably stay put.

Leave a comment