{
  "id": 17562072,
  "title": "Bank of England may raise high-risk mortgage threshold: FT",
  "url": "https://urgent.news/2026/11/01/bank-of-england-may-raise-high-risk-mortgage-threshold-ft",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-01T08:31:42.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/banking-finance/bank-england-may-raise-high-risk-mortgage-threshold-ft"
  },
  "original_language": "en",
  "account": "The Bank of England (BOE) is contemplating expanding the criteria for granting higher-risk mortgages, which could bolster the UK housing market, according to the Financial Times (FT). This decision comes under pressure from lenders and the government. The central bank's financial policy committee (FPC) is evaluating whether to raise a crucial lending threshold to five times borrowers' household income, up from the current 4.5 times. Since 2014, banks have been prohibited from issuing over 15 percent of mortgages to borrowers exceeding this loan-to-income level. A spokesperson for the BOE confirmed that the bank \"keeps its housing tools under regular review, having regard to the FPC’s primary and secondary objectives.\" UK Finance, a bank lobby group, estimated that raising the threshold could unlock additional lending capacity equivalent to 7 percent of new residential mortgages. The UK residential property market is facing renewed pressure due to surging mortgage costs, leading to a stagnant housing market in October. UK Chancellor John Healey wrote to the BOE, urging the FPC to \"target improving access to home ownership without prejudicing financial stability\" and to explore ways the loan-to-income threshold can better support this objective. This request follows the Chancellor's decision in the October 28 Budget to double the UK's bank tax surcharge to 6 percent, generating around £1.5 billion to aid cost-of-living relief for struggling households.",
  "summary": "It can free up lending capacity equal to 7% of new residential mortgages, says bank lobby group UK Finance",
  "key_points": [
    "Bank of England considering raising high-risk mortgage threshold to 5x income.",
    "Financial Policy Committee evaluating threshold increase from 4.5x.",
    "UK Finance estimates expanded threshold could unlock 7% more lending."
  ],
  "editors_take": "Easing these lending restrictions signals a shift toward prioritizing housing market liquidity and homeownership access over the strict debt-to-income safeguards that have defined UK mortgage policy for a decade.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}