Bank of England imposes limits on high loan-to-income mortgages
The Bank of England has introduced new mortgage controls, in an attempt to contain possible risks to the UK’s financial system.
New limits will apply from 1 October, and will see that no more than 15 per cent of mortgages issued should exceed a loan-to-income ratio of 4.5.
Currently only 11 per cent of UK bank lending exceeds that ratio, so that cap is unlikely to bite. The current average ratio on new mortgages stands at 3.4.