It comes several months after the International Monetary Fund suggested the Bank of England should consider capping LTVs to avoid future financial crises.
The Financial Services Bill: the Financial Policy Committee's Macro prudential tools consultation will close on 11 December 2012 and also proposes lenders should hold counter cyclical capital buffers as well as capital requirements dependent on product type.
The FPC will be responsible for prudential regulation under the new twin peak regulator model due to come into force next year.
