Rule Change at Bank of England Makes It Easier to Secure a Mortgage
13 Mar, 2017
Is now the right time to secure a mortgage? A little known rule change could help you buy your perfect home.
It will allow you easier access to a mortgage more than four and a half times your annual income.
The Prudential Regulation Authority (PRA) which influences decisions made in the Bank of England has confirmed that rules will change the current fixed quarterly limit to a four-quarter rolling limit.
How Does The Rule Change Help Me?
The rule change can help you as lenders can manage mortgage limits more easily, as bankers now don't have to fear breaching the fixed quarterly level.
Ray Boulger, a senior technical director at John Charcol said:
"Because many mortgage offers are valid for up to six months but lenders don't know how quickly borrowers will complete, each lender has up to now had to assume that a higher than statistically likely proportion of offers in excess of 4.5 times income will complete quickly."
"As a result lenders have restricted the proportion of offers in excess of 4.5 times income to about 13 per cent, compared to the PRA's actual limit of 15 per cent."
A move made to improve competition in the mortgage market and pass on the competitive rates to consumers.
If you're interested in securing a mortgage for a new home don't forget we have professional mortgage brokers on hand to offer you a range of options. Just visit our contact page!