The Bank of England has warned high street banks are taking increasing risks selling mortgages and commercial loans that could threaten the stability of the financial system if left unchecked. Threadneedle Street put banks on notice that it could force them to strengthen their financial reserves after finding almost a fifth of new mortgage lending has gone to customers who only just meet its affordability rules. High street banks are increasingly selling mortgages at or near the Bank’s restriction for borrowing not to exceed more than 4.5 times a customer’s income. It said no action was required at this stage but ... (full story)