{"id":127186,"date":"2026-10-18T11:55:00","date_gmt":"2026-10-18T10:55:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127186"},"modified":"2026-10-18T10:56:35","modified_gmt":"2026-10-18T09:56:35","slug":"new-mortgage-proposal-london-buyers","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/new-mortgage-proposal-london-buyers\/","title":{"rendered":"New Mortgage Proposal Could Let London Buyers Borrow Six Times Their Salary"},"content":{"rendered":"\n

The London Chamber of Commerce<\/strong> has called for greater flexibility in mortgage lending, arguing that existing borrowing limits exclude people who can afford substantial monthly rental payments. The recommendation comes as Prime Minister Andy Burnham and Chancellor John Healey prepare a Budget amid rising household costs and wider economic pressures.<\/p>\n\n\n\n

London Chamber of Commerce calls for higher mortgage borrowing limits<\/strong><\/h2>\n\n\n\n

Mortgage lenders generally restrict borrowing to around 4.5 to five times an applicant’s annual salary. According to the Daily Express, the London Chamber of Commerce wants banks and building societies to have the regulatory flexibility to offer mortgages worth up to six times<\/strong> income to eligible borrowers in London.<\/p>\n\n\n\n

The Chamber argues that property prices<\/strong> in the capital are sufficiently higher than the national picture to justify different lending arrangements. Even professionals with secure employment, strong credit histories and relatively high salaries can struggle to qualify for mortgages large enough to purchase a home.<\/p>\n\n\n\n

In its submission to the Government, the organisation said existing lending limits were preventing some financially secure Londoners from buying properties despite their ability to meet substantial rental costs.<\/p>\n\n\n\n

The proposed changes would allow lenders to assess creditworthy applicants<\/strong> under a higher income multiple, rather than applying the borrowing limits typically used elsewhere in the country.<\/p>\n\n\n\n

The Chamber also linked its recommendation to measures intended to increase housing supply. It argued that greater borrowing flexibility, alongside additional housing development, would help ensure newly built homes could be purchased by the people they were intended to accommodate.<\/p>\n\n\n\n

According to the Chamber’s submission, the change could also benefit existing homeowners <\/a>seeking larger properties. It suggested that enabling more people to secure mortgages would help address difficulties in the London housing market, where a limited pool of eligible buyers is affecting transactions.<\/p>\n\n\n\n

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London mortgage proposal would allow eligible buyers to borrow up to six times their annual salary.<\/em><\/figcaption><\/figure>\n\n\n\n

Mortgage proposal arrives ahead of a difficult October Budget<\/strong><\/h2>\n\n\n\n

The recommendation forms part of submissions invited by the Government from organisations across the country ahead of the October 28 Budget. These submissions are intended to inform decisions on the measures the Prime Minister and Chancellor should consider.<\/p>\n\n\n\n

As reported by the Daily Express<\/a>, the London Chamber of Commerce has also proposed abolishing Sunday trading laws, placing mortgage lending flexibility among its recommendations for the forthcoming fiscal statement.<\/p>\n\n\n\n

The proposals arrive as the Government faces pressure to support households and businesses dealing with increased costs. The economic difficulties have been linked to the United States’ war with Iran, which has contributed to inflationary pressures affecting consumers and public finances.<\/p>\n\n\n\n

Inflation is also reducing the Government’s spending power and adding to borrowing costs, complicating decisions over the measures that could be included in the Budget.<\/p>\n\n\n\n

Speaking to the BBC from an International Monetary Fund meeting, Chancellor John Healey acknowledged the challenging economic circumstances when questioned about whether the forthcoming Budget would be tough or austere.<\/p>\n\n\n\n

“Well, it’s a tough time,” he said, referring to global economic conflicts and the pressure they were placing on households and the Government.<\/p>\n\n\n\n

The proposed London mortgage rules remain a recommendation rather than an announced Government policy. Whether ministers will adopt the Chamber’s request for a six-times-income lending framework has not been established ahead of the October 28 Budget.<\/p>\n","protected":false},"excerpt":{"rendered":"

Londoners could be allowed to borrow up to six times their annual income under a proposal submitted to the Government ahead of the October 28 Budget. The measure would introduce special mortgage lending rules for the capital, where high property prices continue to prevent some prospective buyers from entering the housing market.<\/p>\n","protected":false},"author":2,"featured_media":127189,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-127186","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=127186"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127186\/revisions"}],"predecessor-version":[{"id":127188,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127186\/revisions\/127188"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/127189"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=127186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=127186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=127186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}