“These measures are likely to have an impact on the volume of mortgages written. Lenders currently have their own stress tests in place but the new measures ensuring customers can still afford their mortgage if the current base rate rose by 3% is helpful guidance to ensure consistency across the industry.
"The move to ensure that mortgage lenders limit the proportion of mortgages at loan to income multiples of 4.5 and above to no more than 15% of their new mortgages is sensible. However, given that lenders already abide by Mortgage Market Review rules, it would seem to be a broad brush approach which will mean some people who can afford a mortgage will not be able to get one.
“Overall these measures are to be welcomed. They are likely to impact most upon homebuyers in the South East of the UK which is good as it will cool the housing market in the South East but will not stop the expansion in the rest of the UK, where house prices are flat or even falling.”
For further information, journalists can contact:
Nicola York, Cicero Group
Phone: 020 7297 5965
Mobile: 07841 864 107
Notes to Editors:
For further information about Aldermore, our financial backers and our PR contacts, please review our Notes to Editors page.