meta_id 3026681

On 1 April 2026, the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) published Consultation Paper 6/26 (CP6/26), proposing amendments to the implementation of the Financial Policy Committee's (FPC) loan to income (LTI) flow limit recommendation for mortgage lending in the United Kingdom. The consultation proposes removing the current 15 percent LTI flow limit for individual lenders from PRA rules and FCA guidance, while maintaining an aggregate 15 percent limit across the market. This change implements the FPC's July 2025 recommendation to allow individual lenders greater flexibility to determine their own high LTI lending strategies based on their risk appetite and business models. Under the proposals, lenders may increase their individual share of lending at high LTIs above 15 percent, provided the aggregate flow remains consistent with the 15 percent limit. The regulators propose publishing the aggregate high LTI flow quarterly on the PRA website, with firms lending above 15 percent expected to gradually reduce their flow towards 15 percent if the aggregate becomes inconsistent with the limit. Key proposals include: removing firm-specific 15 percent limits; establishing robust risk management and governance expectations for firms engaging in high LTI lending; requiring board oversight for firms lending above 15 percent; measuring high LTI flow using fixed quarters rather than a four-quarter rolling average; and excluding further advances and retirement interest-only mortgages from the LTI flow limit. The PRA proposes new rules and a supervisory statement, while the FCA proposes replacement general guidance. The consultation period closes on 1 July 2026. Responses should be submitted to CP6_26@bankofengland.co.uk. Implementation is expected in the second half of 2026, with interim measures remaining in force until 31 December 2026.