US EditionNew Mortgage Rules Explained: What They Mean for House Buyers, How Much You Can Borrow and Will Prices Rise
- In April 2025, UK banks relaxed mortgage stress test rules following the Bank of England’s updated guidance on affordability checks.
- These changes follow tougher stress tests introduced after 2008 and again in 2022, but now lenders base assessments on expected future interest rates which have recently fallen.
- As a result, many buyers can borrow up to £40,000 more, potentially lowering first-time buyer deposits from £58,000 to £45,000 and expanding the pool of homebuyers.
- Savills forecasts that over five years, this could raise average house prices by 5% to 7.5%, adding up to £19,000 on top of a 23.4% rise already expected by 2029.
- The increased borrowing capacity will likely boost transactions and prices in the medium term but may not suffice to meet government housebuilding targets amid economic uncertainty.
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New mortgage rules will hand millions of UK households £19,000 boost - Birmingham Live
Relaxed mortgage stress tests could see the number of first-time buyers purchasing a home rise by 24 per cent, or more than 80,000, over the next five years, Savills claims.
·Birmingham, United Kingdom
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Total News Sources19
Leaning Left0Leaning Right2Center7Last UpdatedBias Distribution78% Center
Bias Distribution
- 78% of the sources are Center
78% Center
C 78%
R 22%
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