And she added that the Financial Policy Committee’s LTI cap complements the MMR, commenting that media reports of mortgage transactions grinding to a halt after it was introduced in April were over the top.
Addressing delegates at the Royal College of Surgeons in London, she said: “Despite some exaggerated headlines about obtrusive income and expenditure checks it has in the main been business as usual for most firms.
“Lenders have carried on lending and consumers are still getting mortgages.”
Under the FPC measures which came into force in October no more than 15% of lenders’ residential mortgages can be above a loan to income ratio of 4.5.
Woodall added: “The FPC interventions do not undermine the MMR; they support it.
“Regulation is concerned about affordability at the customer level, whereas the FPC is concerned about consumer over-indebtedness at a macro prudential level and the impact on the wider UK economy.”
She also revealed that the FCA is consulting about buy-to-let, while it plans to go ahead with regulation of second charges under the Mortgage Credit Directive when it comes into play in 2016.
She said: “We recognise there are differences with the first charge market.
“It is important that any new regulatory requirements enable this market to function effectively while offering consumers adequate protection from the risks associated with taking out a secured loan.”
