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

LONDON (Reuters) - Britain's finance ministry launched a consultation on Thursday about new powers requested by the Bank of England to regulate residential mortgages, but said discussion of similar curbs on buy-to-let mortgages would have to wait until 2015. "The government is proposing that the Bank is granted powers of direction for loan to value limits and debt to income limits for owner-occupied mortgages," the ministry said. The BoE requested these powers on Oct. 2, along with the ability to limit the size of buy-to-let mortgages relative to rental payments. But the finance ministry said a review of the latter would need to wait until next year. "The government intends to consult separately in 2015 on the Bank's recommendations for it to have new powers over the buy to let market, with a view to building an in-depth evidence base on how the operation of the UK buy-to-let housing market may carry risks to financial stability," the ministry said. (Reporting by David Milliken, editing by Andy Bruce)