The article examines how changes in bank capital requirements affect mortgage lending in the UK. A 100 basis point increase in capital requirements leads to a 5.4% decrease in individual loan size from banks. Loans from other banks increase by a similar amount, suggesting a shift in credit. Borrowers with poor credit history are not significantly impacted. This suggests that banks may be making riskier loans to boost their capital reserves. Non-bank finance companies do not seem to be filling the gap left by banks.