Finanstilsynet proposes new lending regulations
Finanstilsynet has today sent a consultation document to the Ministry of Finance, proposing new lending regulations. The proposed regulations will replace the residential mortgage lending regulations and the regulations on requirements for financial institutions' lending practices for consumer loans (consumer lending regulations) and include all loans from financial institutions to private individuals. A reduction in the maximum limit for borrowers’ total debt from 5 to 4.5 times gross annual income when granting new loans has been proposed. The flexibility quota for residential mortgages is proposed to be reduced from 10 per cent (8 per cent in Oslo) to 5 per cent. No flexibility quota is proposed for other loans.