In the BofE's biannual Financial Stability Report for July 2015 it highlights the bank describes -
"Looser lending standards in the buy-to-let sector could contribute to general house price increases and a broader increase in household indebtedness"
The bank is concerned that any downswing in the economy could cause a flood of BTL property onto the sales market, that in an "illiquid market" could empower a property crash.
The bank's concerns will only be exacerbated by the looming increase of UK interest rates.
The bank stated its concerns -
"Buy-to-let borrowers are potentially more vulnerable to rising interest rates because loans are more likely to be interest-only and extended on floating-rate terms, and affordability tends to be tested at lower stressed interest rates than owner-occupied lending."
Download the Bank of England's Financial Stability Report for July 2015
Watch Mark Carney give his assessment ...
More on the B of E report -
The Telegraph - BTL could threaten UK economy
Could buy-to-let boom be burst by the Bank of England? http://t.co/eftyqNfSVT
— This is Money (@thisismoney) July 2, 2015
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