The Bank of England has announced plans to relax mortgage lending rules from today, August 1, in what will be undoubtedly excellent news for first-time buyers.
Borrowers currently have to show that they can afford repayments if their mortgage reverted to their lender’s higher variable rate and interest rates jumped by 3%. However, after consulting lenders and other members of the industry, the Bank’s Financial Policy Committee (FPC) has said it will scrap the rule this summer. First-time buyers, who were most likely to have been caught out by the rule, will benefit, and it comes at a time when rising interest rates and high house prices are already making it challenging for people to get on to the property ladder.
You can read more as to why the Bank of England has done this, and who and how it benefits, in this article here
If you’re interested in buying a property in the Bromley area, or want some help and advice when it comes to buying or selling, then please contact one of our experienced team today.