Regulatory Alerts2025-03-31
Added · Updated
FG25/4: Amendments to PRA Rulebook and FCA Guidance concerning the de minimis threshold for the Loan to Income flow limit in mortgage lending
The FCA raises the de minimis threshold for Condition B from £100 million to £150 million, effective 11 July 2025, while maintaining the £100 million threshold for Condition A and the 300-contract minimum. Firms meeting these conditions are expected to limit high loan to income mortgage contracts to 15% of total regulated mortgage contracts in any relevant four-quarter period, with a loan to income ratio defined as 4.5 times income. The guidance applies to firms with Part 4A permission entering regulated mortgage contracts, excluding banks, building societies, insurers, friendly societies, credit unions, and their subsidiaries.
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