Part

Housing

Chapter

High Loan to Income Allowance

Printed on: 06/11/2024

Rulebook at: 25/03/2016

2

High Loan to Income Allowance

2.1

Unless 2.3 or 2.4 apply, a firm must ensure that the number of high loan to income mortgage contracts it enters into in a quarter does not exceed 15% of all regulated mortgage contracts it enters into in that quarter.
  • 01/10/2014

2.2

A firm that is part of a group may allocate all or part of its high loan to income allowance to any member of the group.
  • 01/10/2014

2.3

A firm that has allocated any part of its high loan to income allowance to another member of the group must ensure that the number of high loan to income mortgage contracts it enters into in a quarter does not exceed the amount specified in 2.1, as reduced by the amount of the high loan to income allowance it has allocated under 2.2.
  • 01/10/2014

2.4

A firm that is part of a group must ensure that the number of high loan to income mortgage contracts it enters into in a quarter does not exceed the amount specified in 2.1, plus any high loan to income allowance allocated to it under 2.2.
  • 01/10/2014

2.5

A firm must keep a record of any part of a high loan to income allowance it has allocated or received.
  • 01/10/2014

2.6

In this chapter, a high loan to income allowance is the number of high loan to income mortgage contracts a firm may enter into in a quarter in compliance with 2.1 without the modifications in 2.3 or 2.4 applied.
  • 01/10/2014