Relax mortgage loan rules increase the risk of breach of contract, restrict the hands of regulators: Moody-mortgage strategy
Moody’s said that the loose mortgage loan rules are Britain composed of a heavy -duty -burden -burden -burden family, which will increase the risk of breach of contract and “restrict” the ability to calm down any interference.
Britain is one of the high European countries with high debt. In recent years, it has relaxed the rules of housing loan and is considering further steps, which may lead to a significant increase in mortgage loans.
Moody’s Vice President Alexander Zeidler wrote: “After ten years of gradual tightening, regulators are relaxing six of the eight European countries with the highest level of family debt levels.
“This relaxed person has increased the long -term risks of residential mortgage support securities, underwriting bonds, banks and other mortgage holders.”
According to data in the third quarter of national statistics, the countries picked out by countries are Norway, Switzerland, Luxembourg, Finland, and the United Kingdom, with debt -to -income of 120 %.
Moody’s added: “In these countries, borrowers usually have a lower ability to repay debt, and relaxed loan standards can restrict the ability of regulatory agencies to relieve conditions during the future market pressure.”
The bill last week was Nikhil Rathi, chief executive of the Financial Conducting Authority last week, called on the government to formulate a certain level of mortgage breach. If it relaxes the loan rules, it can be accepted.
Rathi told the House of Shanghai and House of House ofhere in the House of Financial Supervision: “More relaxed loans will lead to more breach of contract” and growth.
He added: “We need to talk to the risky appetite of the parliament.”
In December, Prime Minister Keir Starmer and Prime Minister Rachel Reeves wrote to the regulatory agency to the Fanwen TAPE Festival in December so that the British economy can escape its continuous low growth After that, the request from urban regulators was issued.
In 2022, the Financial Policy Committee withdrew a mortgage loan burden test, but retained its key guidelines, that is, banks should not be more than 15 % of loan loans of loan loans of more than 4.5 times. Both tests were launched in 2014.
Many banks and agents say that the rules of these decades have been reserved in place, and borrowers can comfortably bear mortgage loans from entering the market.
Moody’s notes said: “Relax loan restrictions may not necessarily lead to an increase in mortgage loans, because banks have set underwriting standards based on their own risk, and their loan strategy is affected by many factors.”
However, credit institutions added that the characteristics of the national market can lead to keen loan clauses.
It pointed out: “In some countries, because the main lenders are trying to develop their loan foundation, small lenders must adapt to the gradual loosening of the underwriting standard.
“For example, in the UK, when the Bank of China invades its typical customer base, Challenger Bank sometimes targets high -risk borrowers.
“So far, the relaxation of Britain’s underwriting standards has not affected the current level of arrears, but in the long run, it may lead to weak performance.”
However, credit institutions believe that the powerful British labor market and low unemployment rate will reduce the risk of economic downturn.
It added: “Compared with the financial crisis in 2008, banks’ credit quality is stronger than before the 2008 financial crisis, and if the arrears increase, banks have the ability to absorb the impact of weak performance of mortgage loans.”
