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The Bank of England is considering raising the threshold for high-risk mortgages from 4.5 to 5 times the household income, writes the Financial Times. The British Treasury estimates that easing the rules could free up additional lending capacity equal to 7% of new home loans, which totaled around £200bn last year. The reform is expected to increase housing affordability and support the frozen real estate market.

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The Bank of England is considering raising the threshold for high-risk mortgages from 4.5 to 5 times the household income, writes the Financial Times. The British Treasury estimates that easing the rules could free up additional lending capacity equal to 7% of new home loans, which totaled around £200bn last year. The reform is expected to increase housing affordability and support the frozen real estate market.

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