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FCA to remove affordability test for mortgages

BOE
  • The Bank of England has announced that it will withdraw the affordability test for mortgages.
  • This doesn't really have a big practical change for banks.
  • The LTI limits still remain in place (limits on the number of mortgages that can be lent out with a LTI of 4.5x or greater) and the FCA also has rules on setting responsible lending. So overall it shouldn't really lead to any big changes in net lending criteria.

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