High-income-multiple mortgages face aggregate lending controls
Mortgage lenders exceeding a 15 percent high loan-to-income share face reductions if aggregate lending breaches the limit. The Prudential Regulation Authority (PRA) sets out the framework in its October 14, 2026 supervisory statement.
Above 4.5 times income
High loan-to-income (LTI) mortgages provide credit of at least 4.5 times individual or joint income.
Firms must lend prudently, maintain risk controls and discuss changes enabling flows above 15 percent with supervisors.
Oversight must cover risk appetite, current and future flows, concentrations and mortgage performance.
Additional aggregate-monitoring and adjustment expectations apply above the de minimis threshold.
Firms qualify for exemption if lending is below £150 million or fewer than 300 contracts in both consecutive four-quarter assessment periods.
Newly qualifying firms become subject from the second quarter after the assessment period ends.
Individual high LTI flows are measured over four quarters; qualifying group firms are assessed together.
A graduated brake on lending
The Financial Policy Committee (FPC) sets a 15 percent aggregate limit.
If the PRA and Financial Conduct Authority (FCA) judge flows inconsistent with it, lenders above 15 percent may face reductions.
Persistent breaches bring quarterly fractional reductions of excess lending; firms below 15 percent must remain below it.
Illustrations use one-sixth and one-third reductions, not fixed requirements.
The PRA publishes quarterly aggregates using FCA Product Sales Data, excluding exempt firms.
Adjustment rates reflect data, supervisory intelligence and market factors.
Future lending bears the adjustment
The framework permits individual flows above 15 percent while retaining an aggregate constraint.
Adjustments affect future lending decisions, not approved mortgage offers, and take six subsequent quarters to appear accurately in data.
Boards oversee reductions until the PRA withdraws its expectations.
Source: SS2/26 – High loan to income lending
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