Yesterday it emerged that some members of the Bank's
The committee eventually agreed to ration risky loans by banning lenders from issuing any more than 15pc of their new mortgages at 4.5 times an applicant's salary or higher.
The crackdown was unveiled by the Bank last week but was far less hard hitting than some expected. Minutes of meetings held by the FPC on
Notes of the meeting stated: 'To the extent that there was a risk that the market might see whatever threshold chosen as one that the committee "endorsed" as sound from an underwriting threshold, there was also a benefit in choosing a lower threshold.'
Other members thought that there should be a higher loan-to-income threshold, but a very strict limit on the number of loans issued at or above this limit.
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