8th Sep 2020 06:55
(Alliance News) - Barclays PLC has withdrawn its riskier mortgage deals after nearing a regulatory lending limit to higher-risk borrowers, the Financial Times reported Tuesday.
The London-based bank, in a surprise move last week, reduced the maximum amount customers could borrow to 4.49 times their income from 5.5 times income, the newspaper reported.
Sources briefed on the matter told FT that the decision to withdraw riskier mortgage deals was made after Barclays came close to breaching Prudential Regulation Authority's lending limit, which stipulates that no more than 15% of mortgages for each lender can have an income multiple of 4.5 times or above.
"We recently announced some changes to our loan-to-income limits. As a responsible lender, we made this decision to ensure we continue to adhere to regulatory obligations," Barclays said in a statement.
https://www.ft.com/content/a1a0cb39-43de-411a-9fa1-22db4bb0568e?segmentId=bf7fa2fd-67ee-cdfa-8261-b2a3edbdf916
By Tapan Panchal; [email protected]
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