Interest rates are rising – so why are mortgage rules being scrapped?

Analysis: Bank ruling that borrowers don't have to show they can afford steep repayment hikes raises questions over how to curb excessive borrowing

From today, there is one less barrier to obtaining a mortgage. The path to high value property loans has opened to a much wider audience after the Bank of England killed off a regulation demanding borrowers show they can cope with a three-percentage-point rise in interest rates.

In a move planned last year and implemented on 1 August, the financial policy committee of the central bank said it was scrapping the rule because forcing borrowers to stay within a limit of 4.5 times earnings when they apply for a loan was enough.