The i - Fewer borrowers opting for big mortgages - even though more banks are letting them
Fewer households are taking out mortgages that are far bigger than their incomes, despite banks relaxing rules to allow more of them to do so.
But figures produced by the Bank of England actually show that the proportion of mortgages lent to those with high loan-to-income (LTI) ratios dropped in the second quarter of the year.
Aaron Strutt, at brokers Trinity Financial, added: “More banks and building societies are offering income stretch mortgages than ever as they continue to tempt homebuyers to borrow more money to get on the property ladder, or get bigger mortgages to buy a nicer property in an area they prefer.
“Many older and more risk-averse people think that income stretch mortgages are a recipe for disaster and they should not be available. The difficulty is many first-time buyers will never get on the property ladder without them.”
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