Thousands of potential home buyers may find it easier to get on to the property ladder after a key mortgage affordability test was scrapped by the Bank of England.
The central bank has said the change – taking effect from 1 August – should not be viewed as “a relaxation of the rules”.
However, some commentators said that while the move would be welcomed by many, there was a risk that some people would take out mortgages they were unable to afford.
The Bank has removed a requirement that forced borrowers to be able to afford a three-percentage-point rise in interest rates before they could be approved for a home loan.
This “stress test” was introduced in 2014, after the 2007-08 financial crisis, and was part of a package of measures designed to prevent a repeat of the reckless lending that some say was rife in the run-up to the crash.
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Denne historien er fra August 02, 2022-utgaven av The Guardian.
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