The Bank of England has expressed concerns over excessive landing to fund buy-to-let purchases. In its latest report, the BoE states that buy-to-let lending now accounts for 18% of new mortgage lending. This could pose a risk if interest rates rise, resulting in investment properties becoming unprofitable due to higher debt-servicing costs. The report also states that later this year the Treasury will consult on possible tools to be used by the Bank’s financial policy committee which could ultimately restrict buy-to-let lending.
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