Bank of England reportedly weighs raising higher-risk mortgage threshold

The Bank of England’s Financial Policy Committee is reportedly examining a higher-risk mortgage threshold of five times household income, up from 4.5. Most UK lenders face a 15 percent cap on mortgages above the current threshold. Lenders argue reform could help first-time buyers and others; UK Finance estimates the change could free capacity equivalent to 7 percent of new residential mortgages. The proposal is not an adopted rule.