The Bank's governor, Mark Carney, said he was concerned about high levels of lending to landlords and that the Bank would take action.
"There are a number of things happening ... we are watching it closely and we will take action," he told the FT.
Mr Carney said in the interview that investors could seek to sell properties at the same time if house prices fell.
In September the Bank's Financial Policy Committee (FPC) made a similar warning about the buy-to-let market.
The committee, which is led by Mr Carney, said the market posed a threat to the UK's financial stability.
Lending to landlords had risen by more than 40% since 2008, while mortgages to owner-occupiers was up by just 2% over the same period.
"The stock of buy-to-let lending might be disproportionately vulnerable to very large falls in house prices," the FPC said.
Earlier this year Mr Carney said the Bank was in discussions with Chancellor George Osborne about obtaining greater powers to regulate the buy-to-let mortgage market.