More first time buyers looking for their forever homes will find it easier to get on the property ladder under new plans to scrap tough rules.
The Bank of England said that around 30,000 people every year have been forced to take out smaller loads due to a strict rule, the Mirror reports.
A further 6% have been unable to get mortgages at all, barring those on lower incomes from getting on the property ladder.
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Back before 2007, mortgages were fairly easy to get, with buyers able to borrow 100% of the value of the home.
However, that came to a halt when many households were unable to keep making their mortgage repayments and lost their homes.
The Bank of England brought in a rule in 2014 to toughen up rules on who banks could give mortgages to meaning that anyone applying for a residential mortgage had to be able to afford repayments if mortgage rates rose.
In practice, that meant borrowers had to be able to afford mortgage rates of 3% plus their lender's 'standard variable rate' (SVR), the Mirror reports.
The rule was brought in to protect buyers from losing their homes and getting into debt if mortgage rates go up.
But now, the Bank is consulting on removing this rule completely, but there are fears that this could increase house prices.
Nick Mendes, mortgage technical manager at broker John Charcol, said if this happened at all it would be short lived.
He said: "Will it make an impact to borrowing, yes, because you will be able to borrow slightly more. But longer term everyone will be in the same position."
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