Homebuyers could struggle with mortgages as UK banks tighten affordability tests

Brokers warn soaring bills, tax rises and big hike in cost of household basics have forced lenders to recalculate models

Homebuyers wanting to take out a mortgage could soon struggle to get the size of loan they need, as banks begin taking into account the cost of living crisis when calculating how much they can lend.

Mortgage brokers have said soaring energy bills, the national insurance rise and a big increase in the cost of household goods are set to prompt banks to tighten their mortgage affordability tests, making it harder for consumers to borrow as much as previously.