CP26/12: Proposed amends to PRA Rulebook and FCA Guidance concerning the Loan to Income flow limit in mortgage lending

We are proposing changes to the Prudential Regulation Authority's (PRA) and FCA's loan to income (LTI) rules for mortgages.

Read CP26/12 ( PRA 6/26 Link is external ) Why are we consulting In July 2025, the Financial Policy Committee (FPC) recommended the Prudential Regulation Authority (PRA) and FCA amend implementation of its loan to income (LTI) flow limit to allow individual lenders to increase their share of high LTI lending while aiming to ensure the aggregate flow remains consistent with the 15% limit. We and the PRA are consulting on proposed amendments to the PRA's Rulebook and the FCA’s general guidance following the FPC's recommendation. The PRA proposals apply to all PRA-authorised mortgage lenders and their subsidiaries, while the FCA proposals cover all FCA-authorised mortgage lenders not owned by PRA-authorised firms. This consultation is part of our wider review of mortgage rules. The LTI flow limit plays an important role in protecting borrowers and financial stability, while still allowing creditworthy households to access home ownership. Reviewing how the LTI framework operates will help ensure our guidance is clear, proportionate and fit for today’s market. Feedback from this consultation will help shape our mortgage requirements and improve outcomes for homeowners. Who is this consultation aimed at? This consultation will be of interest to the following: banks building societies friendly societies industrial and provident societies credit unions PRA designated investment firms and overseas banks in relation to their UK branch activities PRA rules also require relevant firms to apply the rules at UK subsidiary level to firms not already caught by the rules Next steps We want to know what you think of our proposals and welcome comments via email by 1 July 2026 .  The PRA is accepting responses on behalf of both the FCA and the PRA and both authorities will consider the responses received. Responses can be sent by email to: CP6_26@bankofengland.co.uk

Alternatively, please address any comments or enquiries to: Macroprudential Toolkit Team, Prudential Policy Prudential Regulation Authority 20 Moorgate London EC2R 6DA.

01/06/2026 : System update

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