Plans to relax mortgage lending restrictions could help more buyers onto the property ladder, but one outspoken property commentator warns the move risks pushing house prices higher.
The Bank of England is reportedly considering raising the threshold for high loan-to-income mortgages from 4.5 to five times household earnings.
The potential change, reported by the Financial Times, would give lenders greater flexibility to offer larger mortgages without those loans counting towards existing high loan-to-income restrictions.
For estate agents, the move could increase the number of buyers able to secure mortgage finance, particularly in areas where property prices are high relative to earnings.
But Charlie Lamdin, founder of BestAgent and presenter of the Moving Home with Charlie YouTube and TikTok channels, believes increasing borrowing power would make housing less affordable.
Lamdin, who in 2023 predicted a 35% peak-to-trough fall in house prices over a period he suggested could last two to three years, has become a divisive voice in estate agency circles.
His latest intervention challenges the assumption that allowing buyers to take on larger mortgages will improve access to homeownership.
Lamdin said: “You can’t solve affordability by lending people more money to pay higher prices. Lending more money is what got us here in the first place.
“Taking out bigger loans may get you into a house, but you will then be part of the problem of continuing to increase the price of houses for people behind you, including your own children.
“All of this is artificial government policy stimulation, and all of it makes affordability worse.”
More borrowing power for buyers
Under the existing framework, mortgages worth at least 4.5 times a borrower’s income are classified as high loan-to-income loans.
The Bank’s Financial Policy Committee recommends that these mortgages account for no more than 15% of new residential lending across the market.
Raising the threshold to five times income would mean mortgages between 4.5 and five times earnings would no longer count towards that restriction.
For a household earning £60,000, borrowing five times income rather than 4.5 times would increase the potential mortgage from £270,000 to £300,000.
However, lenders would still need to carry out affordability assessments, and the change would not guarantee larger loans.
The proposal follows regulatory changes introduced on 28 October, which removed individual lenders’ high loan-to-income limits while retaining the overall market-wide restriction.
High loan-to-income mortgages accounted for 14.1% of new lending in the second quarter of 2026, representing 29,240 loans.
UK Finance estimates suggest raising the threshold could release lending capacity equivalent to 7% of annual new residential mortgage lending.
‘Lend to more people, but lend them less money’
Lamdin argues that greater borrowing capacity could ultimately benefit sellers by allowing purchasers to bid more for the same properties.
He believes the priority should instead be to improve affordability gradually by allowing wages to rise while house prices remain broadly unchanged.
Lamdin said: “A house price crash is not a good thing. A lot of people think that I want one. No, I’ve never wanted one.
“I have always said I want house prices to flatline while wages rise, as the least damaging way to improve affordability.
“Rein in lending salary multiples and loan durations gradually. This proposal goes the opposite way.
“My message to the Bank is simple: lend to more people, but lend them less money.”
His position is not without controversy.
Lamdin has previously urged prospective purchasers to delay buying unless they can negotiate substantial discounts. His warnings about the direction of house prices have also attracted criticism from within the estate agency industry.
However, UK Finance has argued that mortgages between 4.5 and five times income have recorded lower arrears than loans below 4.5 times earnings.
Could the changes boost property transactions?
The debate comes as the housing market continues to struggle for momentum.
Nationwide’s latest figures show annual house price growth slowed to 0.5% in October, down from 0.8% in September. Prices were unchanged month on month.
For estate agents, greater mortgage availability could help turn more prospective purchasers into proceedable buyers and support transaction volumes.
But the longer-term impact would depend on whether additional lending stimulates more sales or simply encourages buyers to offer higher prices.
The Bank of England has not announced a decision on changing the high loan-to-income threshold.
