The Basel Committee’s tougher rules will also apply to businesses as “commercial real estate lending is a recurring source of troubled assets in the banking industry,” the proposal document said. 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 economy . 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 . The Committee rules state that banks have to apply a 35 % risk weight to residential mortgage loans with a risk - to - value ratio of between 60 % and 85 % . The new plan will 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 economy . 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 . The Committee rules state that banks have to apply a 35 % risk weight to residential mortgage loans with a risk - to - value ratio of between 60 % and 85 % . The new plan will double that weighting to 70 % if the loan is dependent on rental income .