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Bank of England plans to remove interest rate rule for mortgages
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The Bank of England has announced plans to ease mortgage lending rules in a move that could help thousands of first-time buyers get on to the property ladder.
The central bank said it wanted to remove a requirement that forces borrowers to be able to afford a three-percentage-point rise in interest rates before they can be approved for a home loan.
Scrapping the requirement could help 1% of renters in Britain – about 50,000 people – who are not able to meet the affordability test. A further 6% of
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