Bank of England scraps mortgage affordability test

Test required potential homebuyers to prove they could afford three-percentage-point rise in interest rates

Thousands of potential homebuyers may find it easier to get on to the property ladder after a key mortgage affordability test was scrapped by the Bank of England.

The central bank has said the change - taking effect from 1 August - should not be viewed as a relaxation of the rules". However, some commentators said that while the move would be welcomed by many, there was a risk that some people would take out mortgages they were unable to afford.