View more on these topics

MPs question why Bank does not want mortgage powers

The Treasury Select Committee is calling on the Bank of England to justify why it thinks it should not be given the power to restrict mortgage lending during housing booms.

The Financial Times reports the TSC is undertaking an inquiry into how the Bank can maintain stability and examine why it has shied away from blocking riskier mortgage lending.

Last week the International Monetary Fund claimed the Bank should have the power to place limits on loan-to-value and loan-to-income ratios.

Paul Tucker, deputy governor for financial stability at the Bank recently wrote that such powers should be limited to politicians.

Chancellor George Osborne is yet to decide what tools to give the Bank’s Financial Policy committee but is expected to come under pressure from the TSC to give it a full range of powers.

Andrew Tyrie, chairman of the TSC, told the FT: “The interim FPC has said that having the power of direction over loan-to-value and loan-to-income restrictions could be beneficial to financial stability and the IMF agrees.

“But the interim FPC did not ask for this power on the ground that the use of these tools would require a high level of acceptability. That reveals a lot.”


Explosive cocktail behind SVR hikes

The pressure on banks to store huge liquid capital and rebuild their balance sheets after the financial crisis along with the eurozone turmoil are the main reasons why the cost of funding has risen, prompting many lenders to hike their SVRs despite the ongoing low base rate. Samuel Dale reports

High street woes propel bridging towards peak

The bridging sector is forecast to hit £1.5bn by the end of the year, although some believe the market is close to its peak. Last week West One Loans claimed the value of the industry has broken the £1bn barrier for the first time and is set to reach £1.5bn by the end of 2012. […]

SHIP steers into wider waters with rebrand as Equity Release Council

Safe Home Income Plans will open up its membership today to advisers, lawyers and surveyors as it rebrands as the Equity Release Council. The trade body hopes its rebrand and new structure will help to promote the sector and educate consumers looking to release the equity in their property. It will be working with members […]

Auto enrolment – so far so good?

Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]


News and expert analysis straight to your inbox

Sign up