Lenders can now issue more high loan-to-income offers under proposals designed to allow households to borrow cash.
7th Apr 20260 713 1 minute read David Callaghan
New lending rules for mortgages could help to boost the property market as it struggles with higher rates and uncertainty created by war in The Gulf.
Banks and building societies will be allowed to issue more than 15% of their loans in high loan-to-income (LTI) deals under new proposals.
RelaxationA relaxation of the current restrictions has been put forward by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), and could mean more borrowers can access cash to buy homes.
The move follows a series of measures introduced last year, which were designed to ease the regulations and increase lending.
Homebuyers were allowed to borrow up to 5.5 times their income, including loan to value ratios of 90% or 95%.
First-time buyersAnd new mortgage rules designed to help first-time buyers, the self-employed and people borrowing in retirement were proposed.
This trend included improved affordability stress tests across mortgage product ranges.
The FCA also unveiled a plan to scrap affordability checks for homeowners looking to remortgage, giving them access to potentially cheaper deals.
Turmoil
Chancellor Rachel Reeves
And Chancellor Rachel Reeves announced that more mortgages will be available at over 4.5 times a buyer’s income following Bank of England recommendations that some banks and building societies offer more high loan-to-income mortgages.
Last week, it was revealed that first-time buyers are the most exposed and vulnerable group to the current turmoil in the mortgage market.
Mortgage reliance among first-time buyers is consistently high across the UK, exceeding 90% in almost every region, according to comparison website Reallymoving.
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Tagsaffordable mortgages cheap mortgage deals FCA PRA 7th Apr 20260 713 1 minute read David Callaghan Share Facebook X LinkedIn Share via Email