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The Guardian - UK
The Guardian - UK
Business
Miles Brignall

Homebuyers could struggle with mortgages as UK banks tighten affordability tests

a couple view a estate agent window
Santander is updating its affordability models amid a surge in the cost of living. Other big lenders are likely to follow suit. Photograph: Amer Ghazzal/Rex/Shutterstock


Homebuyers wanting to take out a mortgage could soon struggle to get the size of loan they need, as banks begin taking into account the cost of living crisis when calculating how much they can lend.

Mortgage brokers have said soaring energy bills, the national insurance rise and a big increase in the cost of household goods are set to prompt banks to tighten their mortgage affordability tests, making it harder for consumers to borrow as much as previously.

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