Aggregated News From Investment Management Regulators

FME issues rules on maximum loan-to-value ratios

Report/Flag

Please complete the required fields.



The Financial Supervisory Authority (FME) has issued rules limiting the loan-to-value ratio of new residential mortgages in accordance with Article 25(1) of Act No. 118/2016 on Consumer Mortgages. In accordance with the Rules entering into force, the maximum loan-to-value ratio will be 85% of a property’s market price. However, first-time home buyers may be granted loans of up to 90% of the market price in accordance with Article 25(2) of the Consumer Mortgage Act. The purpose of the rules is to maintain financial stability in light of growing imbalances in the housing market and to strengthen the resilience of lenders and borrowers with respect to the possibility of falling property prices.

The Financial Stability Council (FSC) has given its opinion on the rules, dated 20th June 2017. In the opinion, FSC endorses FME’s recommendations and reaffirms that the current state of the housing market gives reason to consider the resilience of both lenders and borrowers. According to FSC, the rules are well suited to respond to conditions that could
threaten financial stability or unduly affect the financial system.

Regulator Information

Abbreviation: FME IS
Jurisdiction: Iceland

Recent Articles

SEC Approves Registration of First Security-Based Swap Data Repository; Sets the First Compliance Date for Regulation SBSR

The Securities and Exchange Commission today announced that it has approved the registration of its first security-based swap data repository (SDR).

Regulation for a different world

Speech by our CEO, Nikhil Rathi, delivered at Association of Foreign Banks – CEO Programme 2021 – The UK Regulatory Landscape Post-Brexit and Beyond.  Speaker: Nikhil...

Keynote speech by the Chairman of the FSMA at a high-level conference on sustainability reporting organized by the European Commission

On Wednesday, 6 May 2021, Jean-Paul Servais, Chairman of the FSMA and Vice Chair of IOSCO, gave a speech at a major conference of...

Credit Suisse Bonds / Suisse Capital Wealth Bonds (Clone of FCA authorised firms)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

www.myinvestmentoptions.co.uk

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Get the latest from Regulatory.News in your inbox!

×