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LONDON, June 12 British finance minister George
Osborne said on Thursday that he would give the Bank of England
legal powers to stop Britons taking out mortgages that are too
big compared with their income or the value of their home.
Osborne, in comments released before he gives a major speech
in London, said the housing market was not an immediate threat
to Britain's financial stability but could become one in future.
"I am acting against future risks in the housing market by
today giving the Bank of England new powers to intervene and
control the size of mortgages," he said.
The BoE's Financial Policy Committee is already able to
recommend that lenders adjust mortgage conditions, but cannot
force them to take specific measures on mortgage loan-to-value
and loan-to-income ratios.
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(Reporting by David Milliken)