Homebuyers face £77k borrowing power drop if bank rate hits 6%

Homebuyers could see their borrowing power drop by £77,000 if the bank rate reaches 6% by the end of the year, according to calculations commissioned by the Sunday Telegraph. Mortgage brokers have reported "disastrous" drops in the size of loans being offered, as rising rates mean borrowers are less able to pass lenders' "affordability". Chris Sykes, of London brokerage Private Finance, said that several of his clients had seen the maximum loan they could borrow falling by hundreds of thousands of pounds compared with 18 months ago. He said: "I've had to take a lot less for granted when it comes to affordability. Cases where you'd expect affordability to pass with flying colours now actually need some in-depth analysis to achieve what the borrowers would like." 

The Sunday Telegraph (18/06/2023)