Mortgage affordability test dropped today by Bank of England

[Amity Island]

With substantial rising inflation, fuel and mortgage interest rates making life harder for an ever increasing number of people, the Bank of England have come up with a solution today and dropped the mortgage affordability test to try and make it easier for people to get into more debt.

Mortgage affordability test scrapped by Bank of England

Some potential homebuyers may find it easier to get a loan as the central bank eases borrowing rules.

www.bbc.com

 

[AndBreathe]

With substantial rising inflation, fuel and mortgage interest rates making life harder for an ever increasing number of people, the Bank of England have come up with a solution today and dropped the mortgage affordability test to try and make it easier for people to get into more debt.

Mortgage affordability test scrapped by Bank of England

Some potential homebuyers may find it easier to get a loan as the central bank eases borrowing rules.

www.bbc.com

The affordability test has always had flaws, and has always been significantly imperfect. That it should be dropped wholesale is "interesting"

 

[mikeyB]

The sticking point with a mortgage is the deposit required. People can’t save for a deposit because rent costs are so high. That hurdle over, mortgage repayments for, say, a three bedroom house will be far lower than the rental costs. Or even a two bedroom flat. If deposits were not required, that may increase the repayments, but the same comments I made would still apply.

Mind you, it was sub prime mortgages that bankrupted Lehman Brothers Bank in the US.

 

[Bloden]

Mind you, it was sub prime mortgages that bankrupted Lehman Brothers Bank in the US.

We live and don't learn, unfortunately.