Global officials at the Basel Committee, which sets global financial standards, plan to crack down on buy-to-let loans amid fears of instability following a boom in the market. However, the wider tightening up on buy-to-let does still affect those giant lenders. The Committee wants to hold twice as much capital against mortgages when the repayments are dependent on income from tenants. This move comes after Chancellor George Osborne introduced a new tax on landlords. A spokesman for the Treasury said: “The Government is determined that all property investors should play by the same rules and we will continue our efforts to make sure they do.” The new plan would double that weighting to 70% if the loan is dependent on rental income.
Global officials at the Basel Committee, which sets global financial standards, plan to crack down on buy-to-let loans amid fears of instability following a boom in the market. The Committee wants to hold twice as much capital against mortgages when the repayments are dependent on income from tenants. This move comes after Chancellor George Osborne introduced a new tax on landlords. A spokesman for the Treasury said: “The Government is determined that all property investors should play by the same rules and we will continue our efforts to make sure they do.” The new plan would double that weighting to 70% if the loan is dependent on rental income.