The government is to consult on new powers to allow the
Bank of England to rein in the buy-to-let mortgage market. In April this year, the Bank was given extra
tools to control the residential mortgage market. Those powers could now be
extended to limit borrowing by landlords who buy property to rent out. Now the
Treasury has suggested that the Bank could order banks and building societies
to limit the sums they lend to landlords. This could either be done by taking
into account the size of the loan in relation to the property's value, or by
taking into account whether the landlord's rent covers his or her mortgage
payments. Read more on the BBC website.
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