The Bank of England has launched a crackdown on buy-to-let mortgages as it braces for a wave of defaults in the face of the recession.
Threadneedle Street has warned banks that it intends to scrutinise risky areas more heavily given rising interest rates and a surge in inflation. Lending to landlords and small businesses is to face greater oversight.
Currently around £1tn is loaned to buy-to-let landlords.
