The buy-to-let boom could pose a risk to financial
stability, the Bank of England said as it prepared to embark on a review of the
potential pitfalls of the housing market. The Bank is assessing buy-to-let as
part of its analysis and remains concerned about the level of household debt. Threadneedle
Street said lenders were loosening the criteria for granting buy-to-let
mortgages and making more deals available to borrowers with less than 25% deposits.
This part of the mortgage market has been responsible for most of the growth in
lending since 2008, increasing by 8% in the year to the first quarter of 2015.
Looser lending requirements could bolster house prices but also exacerbate
falls if borrowers needed to sell during times of distress. Read more on the
Guardian website.
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