Property News · August 1, 2022

Interest rates are rising – so why are mortgage rules being scrapped?


Analysis: Bank ruling that borrowers don’t have to show they can afford steep repayment hikes raises questions over how to curb excessive borrowingFrom today, there is one less barrier to obtaining a mortgage. The path to high value property loans has opened to a much wider audience after the Bank of England killed off a regulation demanding borrowers show they can cope with a three-percentage-point rise in interest rates.In a move planned last year and implemented on 1 August, the financial policy committee of the central bank said it was scrapping the rule because forcing borrowers to stay within a limit of 4.5 times earnings when they apply for a loan was enough. Continue reading…

Source : theguardian.com
Read more…Interest rates are rising – so why are mortgage rules being scrapped?

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