Bank of England to ease mortgage lending rule

The Bank of England is poised to ease mortgage lending rules, prompting concerns of a potential housing bubble. Officials are reportedly considering softening affordability checks for borrowers as part of a review of the market restrictions which concludes next week. One of the measures being looked at is reducing the additional interest rate charge used to test borrowers' ability to pay the reversion rate after an initial deal ends. This would benefit first-time buyers, as tight rules designed to protect them against a return to old-fashioned high-interest rates has made it harder for some would-be homeowners in an era of low borrowing costs. 

The Daily Telegraph (06/12/2021)