Mortgage rules eased as Bank of England scraps affordability test

Bank of England says change should not be seen as a ‘relaxation of the rules’

Another rule, which is still in place, limits most new mortgages to a maximum of 4.5 times a borrower’s income

(PA)

Mortgage borrowing rules have been eased by the Bank of England making it easier for thousands of potential homebuyers to get on the property ladder.

The affordability “stress” test forced lenders to assess whether people applying for a mortgage would be able to cope if interest rates rose to 3 percent.

The Bank of England said that the change should not be seen as a “relaxation of the rules”, adding that a number of other measures still in place “ought to deliver the appropriate level of resilence to the UK financial system, but in a simpler, more predictable and more proportionate way.”