Housing High Loan to Income Allowance
Application provision
1.1 If either Condition A or Condition B is met, this Part applies to a firm with a Part 4A permission that includes entering into a regulated mortgage contract as lender, except:
- (1) an EEA Firm with respect to an activity carried on in the UK under an EEA right; or
- (2) a firm with a Part 4A permission that includes effecting or carrying out a contract of insurance as principal.
2.1
27/02/2017
Unless 2.3 or 2.4 apply, a firm must ensure that by the end of each quarter in which this Part applies the number of high loan to income mortgage contracts it enters into in the relevant period does not exceed 15% of all regulated mortgage contracts it enters into in that relevant period.
2.2
01/10/2014
2.3
27/02/2017
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 the relevant period 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.
2.4
27/02/2017
A firm that is part of a group must ensure that the number of high loan to income mortgage contracts it enters into in the relevant period does not exceed the amount specified in 2.1, plus any high loan to income allowance allocated to it under 2.2.
2.5
01/10/2014
A firm must keep a record of any part of a high loan to income allowance it has allocated or received.
2.6
27/02/2017
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 the relevant period in compliance with 2.1 without the modifications in 2.3 or 2.4 applied.