Removal of mortgage stress test ‘will not result in free-for-all’

While Bank of England decision may help first-time buyers, experts say there will still be restrictionsFirst-time buyers may get a boost from this week’s announcement that the Bank of England will no longer expect lenders to check if they can afford mortgage payments at higher interest rates – but experts do not expect it to lead to a mortgage free-for-all.From 1 August, banks and building societies will no longer be required to stress-test a borrowers’ finances with the mortgage market affordability test when working out how much to lend. Continue reading...

Removal of mortgage stress test ‘will not result in free-for-all’

While Bank of England decision may help first-time buyers, experts say there will still be restrictions

First-time buyers may get a boost from this week’s announcement that the Bank of England will no longer expect lenders to check if they can afford mortgage payments at higher interest rates – but experts do not expect it to lead to a mortgage free-for-all.

From 1 August, banks and building societies will no longer be required to stress-test a borrowers’ finances with the mortgage market affordability test when working out how much to lend.

Continue reading...