Removal of mortgage stress test ‘will not result in free-for-all’

Scrapping the stress test may help would-be buyers who have been refused mortgages that have lower repayments than what they pay in rent each month. Photograph: Paul Springett/Alamy

First-time buyers may get a boost from this week’s announcement that the Bank of England will no longer expect lenders to check if they can afford mortgage payments at higher interest rates – but experts do not expect it to lead to a mortgage free-for-all.

From 1 August, banks and building societies will no longer be required to stress-test a borrowers’ finances with the mortgage market affordability test when working out how much to lend.