The Financial Conduct Authority\u2019s (FCA) \u2018Mortgage Market Review\u2019 regulations are based on the principle that mortgages should only be advanced where there is a reasonable expectation that borrowers can repay. To provide new mortgage loans, all lenders must conduct an affordability assessment which includes a robust income and expenditure analysis, and the lender must obtain evidence of that income to support this assessment. Lenders must also comply with rules set by the Financial Policy Committee (FPC) at the Bank of England, intended to manage financial stability risks from the housing market, including a limit of 15% of new lending above 4.5 Loan-to-Income (LTI), and a stress test for loans at 3% above the Standard Variable Rate.<\/p>
<\/p>
Both the FCA and the Bank of England keep their mortgage market regulations under review to ensure that they meet their objectives. In May 2016 the FCA conducted a review of the MMR, finding that the regulations had been implemented as desired protecting consumers without unduly restricting the availability of credit. The FCA\u2019s Mortgages Market Study of March 2019 also found that the market is working well for consumers. The FPC most recently reviewed their housing tools in December 2019 in their Financial Stability Report, including the 4.5 LTI cap, finding that they have had a positive impact in upholding strong underwriting standards to prevent an increase in the number of highly indebted households, whilst having only a limited impact on mortgage availability.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4051", "label" : {"_value" : "Biography information for John Glen"} } , "answeringMemberConstituency" : {"_value" : "Salisbury"} , "answeringMemberPrinted" : {"_value" : "John Glen"} , "dateOfAnswer" : {"_value" : "2020-01-13", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-01-13T14:25:40.533Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2019-12-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Mortgages"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, if he will review the lending requirements for mortgages to ensure the affordability of rents and repayments in relation to the current salary multiplier requirement.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4006", "label" : {"_value" : "Biography information for Dr Matthew Offord"} } , "tablingMemberConstituency" : {"_value" : "Hendon"} , "tablingMemberPrinted" : [{"_value" : "Dr Matthew Offord"} ], "uin" : "84"} , {"_about" : "http://data.parliament.uk/resources/1168287", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1168287/answer", "answerText" : {"_value" : "
The Chancellor has commissioned a review of the off-payroll working rules reform (IR35). As set out at Budget 2018, the reform is due to be extended to all sectors from April 2020. The review was announced on 7 January and will focus on the implementation of the reform, including gathering evidence on the experiences of individuals and businesses. The review will consider whether there are any further steps the Government can take to ensure the smooth and successful implementation of the forthcoming reforms. The review will conclude in mid-February.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-01-13", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-01-13T16:57:58.95Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2019-12-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Off-payroll Working"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, when the proposed review of the changes to IR35 will (a) begin and (b) conclude.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4006", "label" : {"_value" : "Biography information for Dr Matthew Offord"} } , "tablingMemberConstituency" : {"_value" : "Hendon"} , "tablingMemberPrinted" : [{"_value" : "Dr Matthew Offord"} ], "uin" : "85"} , {"_about" : "http://data.parliament.uk/resources/1168323", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1168323/answer", "answerText" : {"_value" : "
The Chancellor has commissioned a review of the off-payroll working rules reform (IR35). As set out at Budget 2018, the reform is due to be extended to all sectors from April 2020. The review will focus on the implementation of the reform, and consider whether there are any further steps the Government can take to ensure the smooth and successful implementation of the upcoming reforms. The off-payroll working rules do not affect the self-employed; part of the review will consider whether this is clearly understood by businesses in their implementation of the reforms. In parallel to the review, HMRC will be stepping up their efforts to support individuals and businesses in preparing for these changes and raising awareness of the reform.<\/p>
<\/p>
The Government is committed to supporting self-employed professionals and consultants. From April 2019, the UK will have increased its Personal Allowance by over 90% in less than a decade. The self-employed have also been given access to the full rate of the new State Pension, worth over £2,000 a year more to a self-employed individual than under the previous system.<\/p>
<\/p>
Budget 2018 announced that the Government is extending the New Enterprise Allowance, to help people start a business; introducing a £10m pilot to support self-employed training; and equalising the treatment of all self-employed people with respect to the Universal Credit Minimum Income Floor.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-01-13", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-01-13T16:56:29.56Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2019-12-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Off-payroll Working"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what steps he is taking to (a) review the proposed changes to IR35 and (b) support people who are self-employed.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4050", "label" : {"_value" : "Biography information for Gordon Henderson"} } , "tablingMemberConstituency" : {"_value" : "Sittingbourne and Sheppey"} , "tablingMemberPrinted" : [{"_value" : "Gordon Henderson"} ], "uin" : "102"} , {"_about" : "http://data.parliament.uk/resources/1168342", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1168342/answer", "answerText" : {"_value" : "