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BOE: Buy-to-let could pose risk to financial stability

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Written by: Hannah Uttley
02/07/2015
Looser lending standards in the buy-to-let sector which allow landlords to gain access to larger mortgages could impact the stability of the UK economy, the Bank of England (BoE) has said.

In its most recent Financial Stability Report, the Bank said these lower standards could lead to house price increases across the board and a broader rise in household indebtedness, posing a risk to financial stability as a result. UK household debt relative to income is already higher than most other developed countries.

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