Chancellor George Osborne is warning the government may
restrict buy to let borrowing with loan caps and rent cover limits. As the
Treasury announced tougher lending rules for residential borrowers in a new consultation,
Osborne cautioned the same is on the way next year for buy to let investors.
The consultations will give the Bank of England’s financial policy committee
new powers to put the brakes on mortgage lending. The committee wants a toolkit
to manage mortgage lending to stop property prices overheating and undermining
bank and building society balance sheets with bad debt. Osborne was told the
committee sees buy to let as a threat to the country’s financial stability.
Read more on the Landlordzone website.
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