Money: Bank of England says it is should be watching mortgage price war 'like a hawk' - PressFrom - United Kingdom
  •   
  •   

MoneyBank of England says it is should be watching mortgage price war 'like a hawk'

04:35  27 may  2019
04:35  27 may  2019 Source:   reuters.com

Metro Bank shares surge after discount share sale raises £375m

Metro Bank shares surge after discount share sale raises £375m Shares in the challenger bank jumped by 17.5% to 630p in early trading.

LONDON (Reuters) - Regulators are watching a price war in mortgages like a " hawk " and may need to slap stricter minimum capital requirements on The price war may be good news for consumers wanting to buy their first home, but it was less good for a bank concentrated in mortgages , Woods

Regulators are watching a price war in mortgages like a " hawk " and may need to slap stricter minimum capital requirements on lenders, Bank of England Deputy Governor Sam Woods said on Friday.

Bank of England says it is should be watching mortgage price war 'like a hawk' © Reuters/Hannah Mckay FILE PHOTO: A man walks past the Bank of England in the City of London

LONDON (Reuters) - Regulators are watching a price war in mortgages like a "hawk" and may need to slap stricter minimum capital requirements on lenders, Bank of England Deputy Governor Sam Woods said on Friday.

The price war may be good news for consumers wanting to buy their first home, but it was less good for a bank concentrated in mortgages, Woods told the Building Societies Association.

High loan-to-value ratios and higher loan-to-income home loans can be well captured by the BoE's capital requirements.

"But we should be watching them like a hawk," Woods said.

Tesco Bank to halt mortgages and sell off £3.7bn portfolio

Tesco Bank to halt mortgages and sell off £3.7bn portfolio Tesco Bank to halt mortgages and sell off £3.7bn portfolio

Regulators are watching a price war in mortgages " like a hawk " and may need to impose stricter minimum capital requirements on lenders, Bank of "But we should be watching them like a hawk ," Woods said . Falling capital levels have been seen at lenders who use their own computer models to

Regulators are watching a price war in mortgages like a " hawk " and may need to slap stricter minimum capital requirements on lenders, Bank of England Deputy Governor Sam Woods said on Friday.

Falling capital levels have been seen at lenders who use their own computer models to work out the riskiness of loans on their books and therefore how much capital to hold.

"The amount of capital being set aside to cover mortgages has been falling," Woods said.

The BoE's supervisors were making strenuous efforts to check on how models are being used.

"Still, I think we should approach this trend with a very skeptical eye and need to consider whether there is a case to impose more floors in firms’ models, particularly given the current stretch in some measures of house price valuation," Woods said.

Related: How companies are reacting to Brexit [Photos]

Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'
Bank of England says it is should be watching mortgage price war 'like a hawk'

MSN UK are Empowering Happiness for mental health awareness month. Find out more about our campaign and the charities working to stop people falling into crisis here.

(Reporting by Huw Jones)

New plastic £50 note will contain animal fat, Bank of England confirms.
The Bank faced a furious backlash from vegans and religious groups in 2016 when it first emerged the new plastic notes contain tallow.

—   Share news in the SOC. Networks

Topical videos:

usr: 4
This is interesting!