Challenger bank bosses to meet with Treasury this week over proposed new capital requirements for buy-to-let mortgage lenders
Bosses from Britain’s challenger banks are expected to meet with Treasury officials this week to make the case for lower capital requirements for smaller lenders.
Ten bank bosses are set to meet Charles Roxburgh, the Treasury’s director of financial services, on Wednesday. One source told City PM that while the banks will ask for a permanent extension of the government’s Funding for Lending (FLS) scheme, talks are more likely to focus on their opposition to proposed changes that would compel small banks offering buy-to-let (BLT) mortgages to hold nearly 2,000 per cent more money than bigger banks.
The lenders, including OneSavings Bank and Aldermore, have been at loggerheads with the Treasury since chancellor George Osborne said in July that the government would scrap the bank levy in favour of a new corporation tax surcharge that would apply to large and small lenders.