Bank of England withdraws mortgage affordability test
LONDON, June 20 (Reuters) - The Bank of England said on
Monday that its Financial Policy Committee would withdraw its
mortgage affordability test recommendation following a review of
the mortgage market.
The withdrawal will come into effect from August, the BoE
said.
The central bank introduced the test in 2014 to ensure that
borrowers do not become a threat to financial stability by
taking on debt they could not afford to repay.
The BoE said its loan-to-income "flow limit" would not be
withdrawn and, alongside other affordability assessments, would
help to protect the financial system in a simpler, more
predictable and more proportionate way.
(Reporting by Kylie MacLellan, writing by Muvija M
Editing by William Schomberg)
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