The Bank of
This announcement as a policy is to prevent the housing market from overheating at some point in the future rather than a fire extinguisher.
The bank said that lenders should apply a "stress test" ensuring that borrowers can keep up their mortgage repayments if it rises up to 3% in interest rates over the first 5 years of the loan.
Figures from the
This indicates that the rules are to have a bigger impact on the
The FPC designed these measures so that they have no impact if the housing market evolves as they forecast, but will kick in if it accelerates faster than anticipated.
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