Emma RadmoreThe PRA and the FCA are consulting on amendments to the PRA Rulebook and the FCA Guidance on the de minimis threshold for the Loan to Income flow limit in mortgage lending.
The Financial Policy Committee has recommended increasing the volume of mortgages that a lender needs to make to trigger the LTI flow limit, from £100m to £150m per 4 rolling quarters. The PRA Rules and FCA guidance need to be updated to reflect this. The change would address inadvertent regulatory tightening that would bring more lenders within the rules if the thresholds stayed unchanged.
Consultation closes on 8 May – the consultation period is short because of the narrow scope of the change.