Mortgages: Bank of England to scrap interest rate to help first-time buyers | Personal Finance | Finance

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“Any new lending limits would also accept that the absolute levels of debt burden are lower at these low interest rates, than what was imagined when the previous rules were first set.

“Secondly, they are of course a reflection of where house prices in the UK have got to, in comparison to average wages. Affordability has been a huge issue for younger buyers for many years.

“With average British salaries now £31,285 and the average national house price being £270,000, we’re in a situation where the house price to income ratio is now 8.6 – falling way short of the current cap of lending 4.5-5x income.”

The home-buying expert highlighted how the interest rate rule change would relieve the pressures put on the ‘Bank of Mum and Dad” to get their children a mortgage.





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