Banks limit mortgage sizes amid rising costs

Banks are limiting how much buyers can borrow when they take out a mortgage because of rate rises and the increasing cost of living. Barclays and TSB have revised their affordability calculators, which help to work out what borrowers can afford to pay in mortgage costs each month, and Santander will follow suit this week. "We can expect more lenders to take living costs into consideration, especially when the energy price cap is removed in April", said Chris Sykes from the mortgage broker Private Finance. "This means we can expect tighter affordability for some and lower loan amounts." 

The Sunday Times (27/02/2022)