Bank Of England Takes Limited Action On Mortgage Lending

The Bank of England’s Financial Stability Report (FSR) that was released yesterday focused on rising levels of indebtedness and higher loan-to-income multiples for new mortgages, but the new rules that it puts into place for banks reflect standard risk management practices. Aside from showing that the Bank of England is taking a macroprudential approach to risk management, the new rules seem to be a defensive move to make sure that current trends don’t get out of hand. Bank of England: UK housing market growth associated with rise in mortgages “The recovery in the UK housing market has been associated with…