Just when you think the Keynesian fraudsters at the central banks couldn’t possibly be any more reckless and irresponsible with their monetary malpractice, they go and prove you wrong. The BoE, after blowing one of the most insane housing bubbles in history, is now making it even easier for F**ked Borrowers who clearly can’t afford the houses they’re signing up to buy, to take out mortgages they’ll never be able to pay off. Did none of these BoE asshats ever watch “The Big Short”?
The Bank of England plans to scrap rules introduced in the aftermath of the financial crisis designed to test whether borrowers could afford their mortgages in the event of significant interest rate rises.
The central bank’s Financial Policy Committee said it would withdraw the so-called affordability test from Aug. 1, according to a statement Monday. The rule, introduced in 2014, requires lenders to test prospective borrowers ability to repay their mortgages in the event that rates rise to a specified stress level. The bank’s loan-to-income flow limit that keeps a lid on the number of borrowers with loan-to-income ratios above 4.5 times will stay in place, the BOE said in the statement.