A reported Bank of England change would remove individual lender caps on high loan-to-income lending while retaining a market-wide limit. If implemented as described, it could give lenders greater flexibility in how they deploy higher-LTI lending, potentially widening options for some borrowers facing affordability constraints.
For advisers, flexibility should not be confused with suitability. AI affordability tools can model repayment resilience, rate-stress scenarios and the effect of changing household costs, but should be tested for data quality, bias and explainability. The advice conversation remains essential: clients need a clear understanding of payment risk, deposit position, future plans and the consequences of borrowing at the upper edge of affordability.