Financial Times - Barclays pulls riskier mortgages after nearing lending limit
Barclays has been forced to withdraw mortgages for certain customers after coming close to breaching a regulatory limit on lending to higher-risk borrowers.
The UK bank shocked customers last week when it reduced the maximum they could borrow from 5.5 times income to 4.49 times without notice.
Aaron Strutt told the Financial Times there was “massive demand for 5.5 times salary”, adding that Barclays had become “really popular” because no other lender was offering it on the same terms.
Mr Strutt added one client recently called after discovering her mortgage, which had been agreed in principle, was no longer valid. “She’s looking for alternatives. The difficulty is there aren’t really any alternatives at the moment.”