Commenting on today's announcement, Paul Broadhead, Head of Mortgages and Housing at the BSA, said:

The Building Societies Association (BSA) welcomes today’s news that following the FPC's recommendation, the PRA is reviewing the Loan to Income (LTI) flow limit rule. This is a step in the right direction, and will enable more first-time buyers that can demonstrate affordability to access home ownership.  Individual firms, including building societies will have immediate flexibility to lend to more borrowers without increasing the overall risks in the financial system.    
 
We have been calling for an uplift in the FPC LTI flow limits for some time and it is likely that today's announcement will deliver meaningful benefits to aspiring homeowners and in turn, help stimulate economic growth. 

We look forward to continuing to work with regulators and government to review mortgage regulation to ensure that we have a market that is innovative, fit for the future and maintains consumer protection at its heart.

Ends

Contact: Katie.wise@bsa.org.uk / 020 7520 5904

Notes to Editors:

The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies have total assets of almost £525 billion and together with their subsidiaries, hold residential mortgages of over £395 billion, 24% of the total outstanding in the UK. They also hold £399 billion of retail deposits, accounting for 19% of all such deposits in the UK. Building societies account for 40% of all cash ISA balances. 

The PRA's announcement can be viewed here