The plans, first announced in November 2016, aim to allow firms to accommodate fluctuations and peaks in demand for high LTI mortgages.
From June 2014, mortgage lenders have had to limit the number of new residential mortgage loans made with an LTI ratio at, or greater than, 4.5 to no more than 15% of their total number of new mortgage loans.
The PRA said the fixed quarterly nature of the LTI flow limit could make it harder for some firms to manage their business pipeline.
The limit still needs to be complied with and monitored at the end of every quarter, but the relevant flows of loans for compliance with the limit will now be those during a rolling period of four quarters in total.
The change has been implemented with immediate effect, so that the LTI flow limit is applied on a four-quarter rolling basis from the current quarter onwards.
Starting from Q1 2017 the PRA would monitor the LTI flow limit on a four-quarter rolling basis, which for Q1 2017 will be incorporating data on flows from Q2 2016, Q3 2016, Q4 2016 and Q1 2017.
