Limits on loan-to-value (LTV) mortgages were back on the agenda last night after George Osborne told MPs the Bank of England could intervene to prevent another housing crisis.
Speaking in the Commons, Osborne said the Financial Services Bill would give a new Bank of England committee powers to "alter the maximum loan-to-value ratios in mortgage lending to curb a sharp, unsustainable rise in house prices," the Telegraph reported. The new Financial Policy Committee (FPC) would also be empowered to force banks to hold more capital to stop another credit bubble in progress. "This FPC should act symmetrically...
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