BoE under pressure to adopt mortgage powers

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The Bank of England (BoE) is likely to be urged today to take on a full range of powers under its new regulatory remit, including a controversial right to restrict mortgage lending during a housing boom.

An inquiry by the Treasury Select Committee (TSC) will assess what tools should be given to the BoE to maintain economic stability. Included is a power to limit loan-to-value and loan-to-income restrictions to keep property bubbles in check. It could potentially mean the BoE prevents first-time buyers from getting on the property ladder, although the International Monetary Fund (IMF) has supported calls for the power to be given to the Bank. Under plans laid out by the government, prudential supervision for banks, insurers and major investment firms will be transferred to a subsidi...

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