The introduction of stricter lending criteria, including stress tests for interest rate rises and an assessment of income versus outgoings, means buyers must meet higher standards in order to qualify for a loan. As interest rates continue to climb, this has led to higher monthly payments for borrowers, making it harder for first-time buyers and even some seasoned buyers to enter the market. As a result, many are turning to smaller properties or more affordable areas, where property prices and mortgage costs are lower.

However, these changes also encourage a more stable housing market. While affordability rules may limit the pool of buyers, they also help prevent an unsustainable rise in house prices driven by excessive borrowing. Buyers are being forced to make more calculated decisions about how much they can afford, which, in turn, reduces the likelihood of financial strain down the line.

In conclusion, while mortgage affordability rules have made homeownership less accessible for some, they have also stabilised the market and promoted long-term financial health for both buyers and lenders. For prospective buyers, understanding these rules and planning ahead is key to navigating the challenges of securing a mortgage in 2025.