The Bank of England has announced the discontinuation of their mortgage affordability test as of August 1, 2022. Initially implemented in 2014 to guarantee that borrowers are not taking on more debt than they can handle and uphold underwriting standards, these checks necessitated individuals to demonstrate they could pay back their mortgages even if interest rates rose above 3%, which is the lender’s average rate. Consequently, this move worked towards both protecting lenders from soaring levels of debt and ensuring responsible borrowing practices among consumers. To better safeguard against growing household debt, the Bank of England changed their approach to affordability tests by introducing a loan-to-income limit. They believe that this method is more effective in preventing rising debt levels than relying solely on mortgage affordability assessments.