UK finance ministry consults on residential mortgages, will review buy-to-let in 2015

LONDON, Oct 30 (Reuters) - Britain's finance ministrylaunched a consultation on Thursday about new powers requestedby the Bank of England to regulate residential mortgages, butsaid discussion of similar curbs on buy-to-let mortgages wouldhave to wait until 2015.

"The government is proposing that the Bank is granted powersof direction for loan to value limits and debt to income limitsfor owner-occupied mortgages," the ministry said.

The BoE requested these powers on Oct. 2, along with theability to limit the size of buy-to-let mortgages relative torental payments. But the finance ministry said a review of thelatter would need to wait until next year.

"The government intends to consult separately in 2015 on theBank's recommendations for it to have new powers over the buy tolet market, with a view to building an in-depth evidence base onhow the operation of the UK buy-to-let housing market may carryrisks to financial stability," the ministry said.

* For the government announcement, see https://www.gov.uk/government/news/government-launches-consultation-on-further-housing-market-powers-for-bank-of-england

(Reporting by David Milliken, editing by Andy Bruce)