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What effect will the new mortgage affordability rules have?

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Manage episode 336776016 series 2558907
Content provided by Damian Fantato. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Damian Fantato or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

This week the Bank of England has scrapped a key affordability test for borrowers wanting to take out a mortgage which was introduced following the 2008 financial crisis.

Since Monday, lenders no longer have to assess whether borrowers will be able to afford a mortgage if interest rates increased by 3 per cent because the Bank claimed it was no longer necessary and was actively preventing people from getting a mortgage.

This week FTAdviser deputy editor Damian Fantato is joined by Jeremy Duncombe, managing director of Accord Mortgages, and Danny Belton, head of lender relationships at Legal & General Mortgage Club, to discuss what impact this might have.

They discuss the criticism this decision has received that the Bank should have waited for the current macroeconomic turmoil to end, they weigh up what actions lenders might take and they discuss what sort of borrower might benefit from this change.

The FTAdviser Podcast is the podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.



Hosted on Acast. See acast.com/privacy for more information.

  continue reading

389 episodes

Artwork
iconShare
 
Manage episode 336776016 series 2558907
Content provided by Damian Fantato. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Damian Fantato or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

This week the Bank of England has scrapped a key affordability test for borrowers wanting to take out a mortgage which was introduced following the 2008 financial crisis.

Since Monday, lenders no longer have to assess whether borrowers will be able to afford a mortgage if interest rates increased by 3 per cent because the Bank claimed it was no longer necessary and was actively preventing people from getting a mortgage.

This week FTAdviser deputy editor Damian Fantato is joined by Jeremy Duncombe, managing director of Accord Mortgages, and Danny Belton, head of lender relationships at Legal & General Mortgage Club, to discuss what impact this might have.

They discuss the criticism this decision has received that the Bank should have waited for the current macroeconomic turmoil to end, they weigh up what actions lenders might take and they discuss what sort of borrower might benefit from this change.

The FTAdviser Podcast is the podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.



Hosted on Acast. See acast.com/privacy for more information.

  continue reading

389 episodes

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