From October, no more than 15% of mortgages granted by UK mortgage lenders should amount to 4.5 times the borrowers’ income.
What does this mean for borrowers?
James Skidmore, Head of Mortgages at AAG Mortgage Brokerage, gives us his thoughts on what might happen.
“It’s difficult to see how lenders will implement this new rule.” James comments, “It’s possible that we’ll see lenders evolving, becoming focused on specific target markets and narrowing down their appetite for certain business.”
Your home or other property may be repossessed if you do not keep up repayments on your mortgage.