Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Mortgage affordability test scrapped by Bank of England

by August 1, 2022
August 1, 2022
Mortgage affordability test scrapped by Bank of England

Mortgage borrowing rules have been eased after the Bank of England scrapped an affordability test.

The “stress test” forced lenders to calculate whether potential borrowers would be able to cope if interest rates climbed by up to 3%.

Removing the test may help some potential borrowers get loans, such as the self-employed or freelance workers.

But other rules such as strict loan-to-income limits will not make it easier for most people to get a mortgage.

The withdrawal of the affordability test was announced in June but has come into effect on Monday.

“Scrapping the affordability test is not as reckless as it may sound,” said Mark Harris, chief executive of mortgage broker SPF Private Clients.

“The loan-to-income framework remains so there will still be some restrictions in place; it is not turning into a free-for-all on the lending front.

“Lenders will also still use some form of testing but to their own choosing according to their risk appetite.”

In other words there will not be an immediate impact for borrowers as lenders will not need to change the way they assess loans.

However, some may well change their own rules in the future.

Mark Yallop, chairman of the Financial Markets Standards Board, said although the change would make it “slightly easier” for some borrowers to get a mortgage, he did not think with would have a significant impact.

“The biggest constraint on new mortgages is the ability of borrowers to afford a deposit,” he added.

Read more:
Mortgage affordability test scrapped by Bank of England

0
FacebookTwitterGoogle +Pinterest
previous post
Energy-intensive companies face shutting early or rationing
next post
Waitrose removes best-before dates from fresh food to reduce waste

You may also like

Jonathan Reynolds appointed as new business minister amid...

July 5, 2024

Taxpayers who haven’t settled their bill with HMRC...

July 28, 2025

Criminal barristers in England and Wales vote to...

August 22, 2022

Marks and Spencer confirms 67 stores will shut...

October 12, 2022

The billion-dollar anime market – an opportunity for...

October 21, 2022

From caterers to shoemakers: British businesses honoured in...

May 6, 2025

LIBA Diet Pills Reviews UK [BEWARE 2023] “LIBA...

February 9, 2023

Fast passive earnings from $10,000 to $80,000

November 28, 2024

Open letter calls for urgent Treasury Select Committee...

July 16, 2025

Cheshire Cheese Company sold to overcome Brexit barriers...

November 15, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump’s Debanking Order Calls for Investigation, Something Tennessee Should Have Done

      August 8, 2025
    • Biden camp skipped Super Bowl interview amid Robert Hur report concerns: Source

      August 7, 2025
    • Steve Bannon has two-word answer to dismiss 2028 presidential candidacy rumor

      August 7, 2025
    • $93 million in aid to fight malnutrition headed to 12 African countries, Haiti, State Dept says

      August 7, 2025
    • $93 million in aid to fight malnutrition headed to 12 African countries, Haiti, State Dept says

      August 7, 2025
    • America’s Not-So-Secret Secret Police

      August 7, 2025

    Categories

    • Business (8,704)
    • Investing (2,185)
    • Politics (16,337)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved