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It will also be able to enforce affordability checks for borrowers and ban misleading adverts by payday lenders.
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To combat some of the most egregious problems, Mr Wheatley proposes to enforce proper affordability checks, to limit the number of times a loan can be rolled over and to clamp down on misleading advertising.
Forcing lenders to hold buffers large enough to withstand such a shock should deter them from offering the riskiest kinds of mortgage.Kevin Daly, an economist at Goldman Sachs, an investment bank, thinks the FPC will enforce tougher affordability tests this year, possibly as soon as June.
It might be tougher – not because of the removal of Funding for Lending, but because the BoE has also asked the regulator to enforce what could be tougher affordability tests on mortgage lending.
Regulators must enforce it.
"We don't enforce.
Schools enforce rules inconsistently.
"We enforce this strongly.
Always enforce your rights.
The government, which will begin enforcing tighter specifications this year, says it must seek a balance between quality and affordability to achieve its goal of getting millions of additional consumers to install the bulbs.
The lending restrictions enforced by this year's mortgage market review rules, which force banks and building societies to undertake rigorous affordability checks on borrowers, and a limit on mortgages worth more than four-and-a-half times salary have helped slow the rise in prices.
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CEO of Professional Science Editing for Scientists @ prosciediting.com