What changed
The final policy lets individual lenders set high loan-to-income lending above 15% in line with their risk appetite and business model, provided the market-wide flow remains consistent with the Financial Policy Committee’s 15% limit. The PRA and FCA will measure firms on a rolling four-quarter basis, while monitoring the aggregate on a single-quarter basis. The PRA will publish the aggregate measure and supporting mortgage-volume information each quarter.
Implementation and controls
The new PRA rules, supervisory statement and FCA guidance take effect on October 28, 2026. If aggregate lending moves outside the intended limit, regulators may expect firms above 15% to reduce their future flow gradually. Governance and risk controls remain central: lenders increasing high-LTI activity must be able to demonstrate oversight, management information and the ability to adjust their portfolios.
What it means for merchants
Merchants are not directly regulated by this mortgage policy, but businesses serving housing and home-improvement customers should watch lender criteria and quarterly aggregate data because credit availability can influence demand and average order values.
Read the original announcement
Bank of England · 14 Oct 2026This brief summarizes the linked primary source. Claims and reported figures have not been independently audited by Payment Guide.