Mortgage applicants facing tighter restrictions

Mortgage applicants are likely to face tougher affordability checks over the coming months, as lenders become more cautious amid inflation concerns and buyers struggle to keep on top of their finances. Reports suggest HSBC is considering tightening its mortgage lending criteria as household finances are put under pressure by rapidly rising energy prices and inflation more widely. Sources at the bank confirmed the lender is assessing whether it will impose stricter affordability tests to ensure borrowers can afford to meet their monthly repayments. Katie Brain, a banking expert at Defaqto, said: "All mortgage lenders review a borrowers' affordability to determine how much they are prepared to lend, with the rise in cost of living at the moment this will be reflected within the increase in household bills." 

The i (17/012022)