BOE mortgage LTV ratio control.
With regard to loan to value mortgage ratios, the Bank of England has defended its decision not to ask for the power to control loan to value levels set by mortgage lenders.
The BOE has argued that the power to limit mortgage LTVs and borrowing in general is something that it feels should rest solely with UK government and not an unelected regulator.
The BOE's deputy governor Paul Tucker has advised that an outright ban on UK households taking on mortgage deals at high LTV levels, and a ban on families borrowing outside the UK's financial system is not a matter for the Financial Policy Committee but for the government.
The interim Financial Policy Committee has issued a list of economic tools it believes the committee should have next year when it's power comes into full effect.
Peter Sands, Standard Chartered chief executive has accused the FPC committee of asking the Government for tools to prevent people from borrowing what it considers as too much, adding that it has been done by subterfuge.
Mr Sands has gone on to say that in effect the Financial Policy Committee want to control UK lending levels in all areas. He adds that to prevent the problematic bubbles previously created people need to be stopped from borrowing more on their mortgage than is sensible. However he feels that the Financial Policy Committee have lacked the courage to tackle the issue in a direct manner.
The Treasury has not yet confirmed if it is prepared to give the Financial Policy Committee the regulatory tools that it has requested.
