# The Bank of England Act 1998 (Macro-prudential Measures) Order 2016, Article 3: Macro-prudential measures


(1) The measures in paragraphs (2) and (3) are prescribed in relation to the FCA and PRA.
(2) Where the Financial Policy Committee considers it proportionate on the basis of a cost-benefit analysis, a measure to require relevant regulated persons to ensure that, in relation to relevant buy-to-let mortgage contracts which are entered into after the date of the direction, no more than a specified proportion have a loan-to-value percentage greater than a specified maximum loan-to-value percentage.
(3) Where the Financial Policy Committee considers it proportionate on the basis of a cost-benefit analysis, a measure to require relevant regulated persons to ensure that, in relation to relevant buy-to-let mortgage contracts which are entered into after the date of the direction, no more than a specified proportion have an interest coverage ratio less than a specified minimum interest coverage ratio.
(4) In paragraphs (2) and (3), “specified” means specified by the Financial Policy Committee in a direction given under section 9H of the 1998 Act.
(5) In paragraphs (2) and (3), references to “interest coverage ratio” and “loan-to-value percentage” are references to those matters as calculated by a lender when deciding whether to provide credit to a borrower.

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Source: https://www.legislation.gov.uk/ukdsi/2016/9780111151372/article/3 (the official version)
Page: https://openlegislation.uk/draft-bank-of-england-act-1998-macro-prudential-measures-order-2016/article-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.