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Home > Prudential Regulation Authority > Underwriting standards for buy-to-let mortgage contracts - PS28/16
 

Underwriting standards for buy-to-let mortgage contracts - PS28/16

29 September 2016

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to the responses to Consultation Paper (CP) 11/16 ‘Underwriting standards for buy-to-let mortgage contracts’, and the final Supervisory Statement (SS) 13/16 ‘Underwriting standards for buy-to-let mortgage contracts’.

This PS is relevant to all firms regulated by the PRA that undertake buy-to-let lending that is not already subject to Financial Conduct Authority (FCA) regulation. The PRA expects regulated firms to ensure that the standards contained in the SS are adopted by other firms undertaking buy-to-let lending within their groups.

The PRA’s clarification on the small and medium-sized enterprise (SME) supporting factor is relevant to all firms within the scope of the Capital Requirements Regulation (575/2013) (CRR).

Feedback to responses

The PRA received 34 responses to the CP from banks, building societies, associations and private individuals. While respondents expressed support for buy-to-let underwriting standards, some respondents challenged specific aspects of the proposal or asked for further clarification. After reviewing the feedback received, the PRA has made amendments to the proposal for the implementation timeline and provided further clarifications.

Policy statement

Underwriting standards for buy-to-let mortgage contracts – PS28/16

Appendix 1

Supervisory Statement SS13/16: Underwriting standards for buy-to-let mortgage contracts

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