The PRA has amended its Rulebook and the FCA has amended its Guidance on the de minimis threshold for the Loan to Income flow limit in mortgage lending.
The Financial Policy Committee had recommended increasing the volume of mortgages that a lender needs to make to trigger the limit, from £100m to £150m per 4 rolling quarters. Updating the PRA and FCA’s documentation addresses inadvertent regulatory tightening that would have brought more lenders within the rules if the thresholds remained unchanged.
All respondents to the consultation were supportive of increasing the de minimis threshold.