The Bank of England has been busy this week, creating headlines with its consultation on the withdrawal of the affordability stress test and its decision to increase the base rate to 0.25 per cent.
The Financial Policy Committee’s consultation, announced in its Financial Stability report, was welcomed by trade bodies which said the withdrawal of the test would remove a barrier to homeownership.
Meanwhile, the Bank’s decision to up the base rate from 0.10 per cent to 0.25 per cent was met with a mixture of surprise and resignation that it was a necessary step to take to control inflation. Banks were swift to act by re-pricing tracker mortgages and making plans to increase standard variable rates.
Here’s a round up of this week’s most read stories on Mortgage Solutions.
Bank of England to consider withdrawing affordability test
RICS refuses to ditch EWS1 guidance
Complex incomes: ‘A lot of first-time buyers are working two jobs’ – TML
Base rate rises to 0.25 per cent
Trade bodies welcome BoE’s affordability test consultation
Brokers see spike in divorce-related enquiries
Mortgage brokers among 16 firms to go into default
Affordability changes will give lenders freedom but market will practice sensibly – Marketwatch
Lenders are making margins on borrowers who have to go green – Skipton BS
Lenders tweak tracker products and up SVRs after base rate rise