By Reuters
Published on
LONDON - The Bank of England said on Monday that its Financial Policy Committee would withdraw its mortgage affordability test recommendation following a review of the mortgage market.
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The withdrawal will come into effect from August, the BoE said.
The central bank introduced the test in 2014 to ensure that borrowers do not become a threat to financial stability by taking on debt they could not afford to repay.
The BoE said its loan-to-income "flow limit" would not be withdrawn and, alongside other affordability assessments, would help to protect the financial system in a simpler, more predictable and more proportionate way.