Brokers accuse FPC of mission creep

The Bank of England's Financial Policy Committee have been accused by brokers of regulatory ‘mission creep’.

The Financial Policy Committee have asked the Chancellor for the power to impose a limit on loan-to-value ratios across residential lending and the buy-to-let sector.

The move has shocked brokers, who accuse policymakers of giving out a confused message  following the introduction of the Mortgage Market Review in April.

 Jonathan Clark, Chadney Bulgin mortgage partner says while the mortgage industry is braced for regulation of the buy-to-let -market following the Treasury’s recent consultation on the EU mortgage directive, the latest move in relation to LTVs is bordering on “regulatory creep”.

Clark says: “We know they want to regulate buy-to-let, that is on its way and the industry is aware of it. The business about LTVs is worrying because the MMR was supposed to sort all this out and get us back to responsible, sustainable lending. No sooner had it dropped, however, than we get the LTI cap.

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