The PRA and FCA's revised approach to high loan-to-income mortgage lending takes effect on 28 October 2026. The joint policy statement was published on 14 October; today is its implementation date. It concerns relevant mortgage lenders across the UK.
What changes
The framework replaces the individual 15% limit for lenders covered by the rules with an approach intended to keep the aggregate share of high loan-to-income mortgages consistent with a 15% limit. This is a share by number of mortgages covered by the framework, rather than the amount lent or a buyer's deposit.
The definition of high loan-to-income lending remains borrowing at least 4.5 times the gross annual income counted by the lender, including joint income for joint borrowers. Some lenders already used interim arrangements, so the change does not mean every provider introduces new products today. Nor does it guarantee a larger mortgage.
Check affordability before changing your budget
GOV.UK's buying guidance explains that lenders consider income, regular spending and changes that could affect repayments. An income multiple alone does not establish what a lender will offer.
- Ask your lender or mortgage adviser which current lending criteria apply to the property and borrowing amount you are considering.
- Use an actual quoted interest rate, loan amount and term in our mortgage repayment calculator. Compare payments at a higher rate too, so you can see how much room your budget has.
- Keep purchase fees, removal costs and a contingency alongside the deposit in your moving budget. A larger available loan would also mean more debt to repay.
- Gather income and spending evidence using our mortgage application checklist. Confirm the lender's own document requirements.
MoneyHelper describes affordability-calculator results as estimates because lenders apply their own criteria. Treat a calculator result as a planning aid, and confirm any borrowing change with the lender before relying on it for a purchase.