Bank of England’s withdrawal of its mortgage affordability test (20.06.22):

“The decision by the Bank of England to withdraw its affordability requirement, shows how seriously it is taking the challenges currently facing first-time buyers in particular. For some potential borrowers trying to get onto the property ladder this will be a welcome change, but the numbers helped by the change will likely be quite small and this move is unlikely to have a huge impact on the wider market.

“The market is currently working through high transaction volumes, driven both by buyers looking to move and improve, as well as a significant number of people whose current deals are expiring in a rising market and who are keen to use an adviser to lock into new deals. Frequent re-pricing by lenders is also providing further challenges to consumers and advisers. All of this means that the real benefits of this move will likely not be seen until greater stability returns to the market.

“Ultimately, it’s positive that the Bank of England is addressing the problem of affordability and has consulted the industry and listened to its concerns. We should be clear though that this move is no silver bullet. If we really want to support first-time buyers, then we also need more serious long-term investment to boost the UK’s housing supply.”