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

Ticketmaster Hack: Personal Data of 560 Million Customers...

June 3, 2024

Dive Into Dynavap: The Future of Portable Vaporizers

May 24, 2024

TUC urges Bank of England to halt ‘reckless’...

August 2, 2023

Fostering Innovation and Team Collaboration: Strategies from Scott...

September 26, 2024

Airbnb shows travellers are bucking recessionary fears

February 15, 2023

Britain will dodge recession in 2023, think tank...

February 8, 2023

Gin and tonic surpasses tea as Britain’s favourite...

November 19, 2024

Wilko store closures put on hold as administrators...

August 30, 2023

Durham medical supplier clinches multi-million pound funding boost

February 7, 2025

Ocado to close its Hertfordshire warehouse with 2,300...

April 26, 2023

    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

    • European diplomats urge Iran to continue US nuclear talks in first face-to-face since strikes started

      June 20, 2025
    • As Iran talks get underway, expert raises alarm over lack of plan to secure nuclear material

      June 20, 2025
    • Spending and Debt in the OECD

      June 20, 2025
    • Four plead guilty in massive bribery scheme at agency Democrats fought to protect from DOGE

      June 20, 2025
    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

      June 20, 2025
    • Does ICE Mask Its Agents to Protect Them from Targeted Violence?

      June 20, 2025

    Categories

    • Business (8,275)
    • Investing (2,057)
    • Politics (15,719)
    • Stocks (3,158)
    • 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